Nursing-home landlord, Sabra Health Care REIT, Inc. (SBRA) posted the second-best performance in the latest quarter with a total return of 38.8%. Last year, the stock of the company, based in Irvine, Calif., posted a total return of negative 29% on fears that steep cuts in Medicare reimbursements would hurt the ability of its tenants to pay rent.
Joel Beam, a fund manager at the Forward Select Income Fund and one of Sabra's largest shareholders, said the company and its tenants should be able to cut expenses to offset expected drops in Medicare revenues. Besides, "there aren't many stocks out there that you can get an 8% yield," Beam said. Sabra's yield is significantly higher than industry's average of roughly 3%.
Have you looked at this REIT? I agree there aren't too many with this yield and sadly I know cuts are being made in this field left and right; their holdings include 76 skilled nursing facilities, ten combined skilled nursing, assisted living and independent living facilities, five assisted living facilities, two mental health facilities, one independent living facility, one continuing care retirement community, and one acute care hospital. I have been holding SNH for quite a while, and it has been a nice yielding "bond" but I would like some more growth.
Also am looking at ROIC (Retail Opportunity Investments Corp), but have only scratched the surface on that one and the yield is much lower than SBRA. |
