by Sven Carlin
Global REITs have higher average yields than US REITs. Worth to take a look.
REITs are always tricky in case of a recession; but healthcare REITs should be a good defensive play.
NorthWest Healthcare offers global diversification, a 6.68% yield, growth potential and protection as it owns hospitals and medical office buildings.
Expected AFFO growth for the current fiscal year is 10%, I don’t think the market is pricing it in, yet.
I’ve spent the last few weeks looking at US healthcare and other US REITs. My conclusion is that the investing risk is high. Too much money is chasing investment opportunities, be it private or public REITs, so I don’t feel like investing. Plus, US REIT yields are globally the lowest.
Therefore, I’ve been looking at Canadian REITs. NorthWest Healthcare Properties Real Estate Investment Trust (OTC:NWHUF) is a globally diversified healthcare REIT offering a dividend yield of 6.69%. It is focused on medical office buildings and hospitals with stakes in buildings in Canada, Brazil, Australia and Europe.
Source: Northwest Investor Relations
When I combine the current 6.68% yield, that looks safe given the structure of the deals NWHUF is making, and the 5% future growth projections, NWHUF’s potential yearly investing return becomes 11.68%. However, as there is always something that happens when it comes to any business, and especially REITs, the growth rate could be slower, but also higher in the future. You have to see for yourself how this moving component influences your investing. If you wish to know more about my reasoning, pleas enjoy my video.
0:29 Company Overview
2:00 Earnings Growth
2:59 Debt & Risk
4:05 Expected Investment Return
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Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.