Real estate investment trusts have to distribute ~90% of their profits to investors in order to qualify as an REIT.
Real estate investment trusts depend on equity and debt for working capital and carry on extensive expansion and development activities to maintain profitability.
Industrial REITs (real estate investment trusts) fund their development and redevelopment properties through debt.
Industrial REITs (real estate investment trusts) tend to carry on many development and redevelopment projects simultaneously in order to maintain leadership.
Industrial REITs (real estate investment trusts) appear to have a bright future backed by a growing economy and industrial growth.
Industrial REITs (real estate investment trusts) reported robust top-line and bottom-line results in 2Q17 backed by industrial growth,
Industrial REITs (real estate investment trusts) are currently experiencing a boom, and many investors and analysts anticipate future growth.
The minutes from the Federal Reserve’s meeting held at the end of July showed that some officials favor delaying future rate hike decisions until there could be a sustained rise in inflation.
Texas utility Energy Future Holdings announced that it would abandon a deal to sell power transmission company Oncor Electric Delivery to Berkshire Hathaway (BRK.A) for $9.0 billion.
In 2Q17, Berkshire Hathaway (BRK.A) acquired a stake of 17.5 million shares in Synchrony Financial, the financing arm of General Electric. Berkshire Hathaway also increased its holdings in Bank of New York Mellon to 50.2 million shares.
Welltower (HCN) has been assigned a target price of $72.59, which is a 2.1% premium to its current price level.
Healthcare Trust of America (HTA) is the most premium among our top three healthcare REITs in terms of price-to-FFO multiple.
REITs are required to pay 90.0% of their profits to shareholders in the form of share buybacks or dividends.
Welltower’s debt-to-equity ratio was 0.81x for 2Q17, which was lower than the industry mean of 1.07x.
Welltower spent $292.0 million on development and expansion in 2Q17. Of that, $110.0 million was spent on acquisitions.
Healthcare REITs fund their working capital through debt and equity. So it’s important to optimize their spending in order to maximize income.
Strong performance in skilled nursing facilities prompted Welltower management to increase its same-store net operating income guidance for fiscal 2017.
Healthcare REITs have positioned their properties in premium locations where there’s high income growth.
Healthcare REITs that own senior care facilities, hospitals, and nursing homes are seeing growth. With the aging population rising, the need for critical healthcare facilities is also rising.
The Midland and Delaware Basins, which are sub-basins of the Permian Basin, had the lowest break-even prices.