Senior Housing Declares Dividend - Analyst Blog
April 13 2012 - 1:02PM
Zacks
Senior Housing Properties Trust (SNH), a real
estate investment trust (REIT) which primarily owns private pay
senior living communities and medical office buildings (MOBs)
across the U.S., has recently declared a first quarter 2012
dividend of 38 cents per share or $1.52 on an annualized basis. The
dividend is payable on May 10, 2012 to shareholders of record as on
April 13, 2012.
A steady dividend payout facilitates the long-term strategy of
Senior Housing to provide attractive risk-adjusted returns to its
stockholders. The company has also historically promulgated a
dividend reinvestment and direct stock purchase plan through which
stockholders may purchase additional shares of the company by
reinvesting some or all of the cash dividends received on the
common shares.
Investors looking for high dividend yields are increasingly
favoring REITs. Solid dividend payouts are arguably the biggest
enticement for REIT investors as the U.S. law requires REITs to
distribute 90% of their annual taxable income in the form of
dividends to shareholders.
Senior Housing has one of the most diversified portfolios in the
healthcare sector with exposure to nearly all types of facilities.
The company leases some of its owned healthcare related and senior
housing facilities to third-party operators under "triple net"
leases, under which the tenant pays all taxes, insurance, and
maintenance for the properties, in addition to rent.
Healthcare is relatively immune to the economic problems faced
by office, retail and apartment companies. Consumers will continue
to spend on healthcare at the expense of discretionary
purchases.
The healthcare industry is also the single largest industry in
the U.S., based on Gross Domestic Product (GDP). Consequently,
healthcare REITs like Senior Housing Properties are poised to
continue their bull run in the long term.
We presently have a Neutral rating on Senior Housing, which
currently has a Zacks #3 Rank that translates into a short-term
Hold recommendation. We also have a long-term Neutral
recommendation and a Zacks #3 Rank for HCP Inc.
(HCP), one of the competitors of Senior Housing.
HCP INC (HCP): Free Stock Analysis Report
SENIOR HOUSING (SNH): Free Stock Analysis Report
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