Summary
While some pundits believe that skilled nursing rents will continue to decline, the bulls (like me) argue that the supply and demand fundamentals will drive returns.
I consider VTR a blue chip REIT and my top pick overall.
However, NHI should be a top dividend performer in 2018 and I am sure that even Willy Wonka would love these tasty dividends!
This idea was discussed in more depth with members of my private investing community, Intelligent REIT Investor.
A few days ago I wrote an article titled, You Must Understand Value, If You Are A Value Investor, in which I attempted to help investors understand the value of Omega Healthcare Investors (OHI). As I explained,
“As any value investor recognizes, understanding value is the most critical part of fundamental research, arguably the most important.”
The debate with Omega, as well as the other skilled nursing REITs, is rooted in the sustainability of the business model. While some pundits believe that skilled nursing rents will continue to decline, the bulls (like me) argue that the supply and demand fundamentals will drive returns for years in the future.
In the upcoming edition of the Forbes Real Estate Investor, I will examine the strengths and weaknesses of the skilled nursing sector in hopes of identifying the true catalysts that support my OHI and Sabra Healthcare (SBRA) Buy recommendation.
