Wouldn’t it be nice to find a high-yielding investment that’s set to prosper from a powerful, long-term trend?
Such a prospect would be quite valuable in today’s challenging investing environment – especially given the dearth of real income opportunities.
While we’re at it, what if this firm was trading at a discount relative to its better-known competitors?
If you think that’s too much to ask, well, it turns out you’re wrong…
Enter Senior Housing Properties Trust (SNH), a real estate investment trust (REIT) that owns independent living and assisted living communities, continuing care retirement communities, nursing homes, wellness centers, and medical office, clinic, and biotech laboratory buildings throughout the United States.
With a $4.6-billion market cap, it’s not exactly tiny – but it’s often passed over for its bigger competitors, such as Health Care REIT(HCN), Ventas (VTR), and HCP (HCP).
However, a quick glance at the numbers shows that Senior Housing isn’t getting enough love. The chart below compares SNH to the three aforementioned companies:
One thing that sticks out immediately is SNH’s dividend – which, at just shy of 7%, is quite attractive.
In fact, this REIT stands up to other industry favorites all the way across the board.
For starters, it’s relatively cheap right now, with a 2015 estimated price-to-funds from operation (P/FFO) multiple that’s well below the competition.
Additionally, SNH’s one-year net operating income (NOI) growth is nearly four times that of the other firms, while its debt-to-total assets is right in line with the industry’s biggest players.
To top it off, SNH’s assets are widely diversified. The firm is set to close on a deal during the first quarter of 2015 that will add 23 properties in 12 states, which gives it a total of 650 tenants in 395 properties across 39 states.
