M Y REIT S Andy Prophet AAII Silicon Valley Chapter September 8, 2012.
-
Upload
derick-shaw -
Category
Documents
-
view
219 -
download
0
Transcript of M Y REIT S Andy Prophet AAII Silicon Valley Chapter September 8, 2012.
REITs Currently Owned• Health Care REIT (HCN)
– Purchased: May 2011– Yield on cost: 6.25%– IRR: 22.44%– Valuation: $59.01– Current Price: $58.44– Dividend Growth (5-yr): 4.4%– Cash flow growth and returns consistently strong– 20-year average annual total returns 14%– Credit rating: BBB+– Acquiring publicly traded Sunrise Senior Living – Risks:
• Broad health care legislation• Genesis Health Care is HCN’s largest tenant… 17%
of gross investments
REITs Currently Owned (continued)
• Realty Income (O)– Mission is to provide its shareholders dependable
monthly dividend that increases over time– Purchased: Sept. 2011– Yield on cost: About 7%– IRR: 28.66%– Valuation: $41.00– Current Price: $42.00– Dividend Growth (5-yr): 2.2%
• In August O boosted its rate 4.4%
– Credit Rating: A– Increased its dividend throughout the 2008
downturn
REITs Currently Owned (continued)
• Realty Income (O)– Mission is to provide its shareholders dependable
monthly dividend that increases over time– 2010 Roughly $700 million in cash-flow in
acquisitions. 2011 another $1 billion, and more than $500 million already in 2012.
– Recently the dividend is up 4.3% yr.-over- yr.
– Risks:• Realty Income's long-term leases can be canceled
if a tenant files for bankruptcy • Concentration is high, top 15 customers providing
nearly 50% of revenue.