Author Topic: Healthcare REITs  (Read 2067 times)

hgjjgkj

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Healthcare REITs
« on: March 06, 2018, 08:25:19 AM »


I have always been interested in real estate but my market is so hot I started looking at alternatives. One I am thinking about is investing in REITs. Has anyone here had any luck with them? Given the recent market downturn I am interested in looking at REITs and specifically healthcare given the demographics of the USA.  Let's discuss!


http://www.dividend.com/dividend-stocks/financial/reit-healthcare-facilities/

https://seekingalpha.com/article/4139508-best-healthcare-reits-buy-bargain

Rob_bob

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Re: Healthcare REITs
« Reply #1 on: March 06, 2018, 03:39:48 PM »
I invested in an index REIT ETF during the 2008 financial crisis, still hold it, did very well, also have some foreign REIT (outside USA).  More recently I have invested in a health care index ETF.

Philbert

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Re: Healthcare REITs
« Reply #2 on: March 06, 2018, 06:32:24 PM »
OHI is a good one to check out. They have a solid record of consistent dividends.

ChpBstrd

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Re: Healthcare REITs
« Reply #3 on: March 07, 2018, 02:51:55 PM »
I bought OHI in my traditional IRA in late 2016 by writing a put option. The option paid me a couple thousand and I was assigned 900 shares at $35. As the price fell (due to Trump's election) I sold half the position for $30. With that water under the bridge, the plan for my remaining shares was to aggressively write calls while simultaneously collecting the quarterly dividend (~$288). I closed out the experiment late last year at $27.45 with a total net loss of over $1,400. It would have been worse without the calls.

The tragedy was:
1) OHI fell faster than the dividends plus covered call income...
2) during a very high returning year for the stock market...
3) due to realization of two major risks facing healthcare REITs: repeal of the ACA and liquidity problems at a major client related to insufficient medicare/medicaid reimbursements.

With this experiment concluded, I'm done with high-dividend stocks. It's all too easy to give oneself a narrative that those  known risks that keep the yield high will never materialize and then poof... when they do you own a company with limited financial flexibility that is unable to escape its trouble. Company-specific risk is a portfolio killer. I should have been indexing the S&P or nasdaq in hindsight.

clumlee

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Re: Healthcare REITs
« Reply #4 on: March 16, 2018, 07:31:09 PM »
For awhile I had Healthcare Trust of America ($HTA). Their management is fairly conservative with investments and risk and the dividend always was nice. I however sold out when I got 20%+ capital appreciation. But I hear it's come down from the highs of around $32 down to a normal range of mid $20s.

ChpBstrd

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Re: Healthcare REITs
« Reply #5 on: March 17, 2018, 08:02:35 PM »
On a skeptical note, if an investment idea is being touted on seekingalpha and dividend.com, It's probably already too late...

This. The popularity of a stock is part of what you pay for when you buy it.