Discussion: I focus exclusively on swing trading healthcare REITs

Discussion: I focus exclusively on swing trading healthcare REITs


New here. I focus exclusively on swing trading healthcare REITs, altho I used to also use the ex-dividend play on them and did both with virtually any REIT, CEF, AmRoy and CanRoy. Best year was 2004, made 70% on my stock equity. I wrote a quantitative book on hREITs (currently updating it) and am available for discussing them. Thanks.

Otis Jenkins: How do you feel about $sbra? I’ve been holding them for about a year now… mostly down, but I’m keeping the faith and averaged down a bit.

Buford Pruitt: Our capricious Congress has really squeezed profits on operators of skilled nursing facilities and hospitals over recent years, starting long before Obamacare. Altho SBRA has very few hospitals (only 1 at end-2016), more than half of its facilities were skilled nursing homes. While its seniors housing facilities are almost totally private-pay (yay!), skilled nursing tends to be about 45% paid by Medicare and Medicaid (boo! hiss! see first 7 words in this paragraph). Each time Congress lowers reimbursements, some skilled nursing facilities go belly-up and more hospitals file for non-profit status. Duh, this is not good for their REIT landlords, like CTRE, LTC, OHI, SNR & SBRA. This is especially bad during market downturns, which is exactly what is happening now. IOW, Congress hammers hREITs just when hREITs need help the most! I expect at least one skilled nursing-heavy hREIT to experience death spirals shortly. I believe that hREITs heavy in CCRCs are currently the best hREIT long-term investments.

Buford Pruitt: Admins: Please let me know if my responses are too long, but it’s hard to address in only a few words companies as complicated as hREITs that are under the thumb of a Congress as uncertain and unpredictable as ours!

Buford Pruitt: Otis Jenkins IMO spinning off CCP was a brilliant move by VTR and a foolish acquisition by SBRA. I am currently revising my book on hREITs (current as of end-2016) and have not yet focused on SBRA so cannot be more specific at this time, but you may want to dump SBRA before my 2017 edition comes out!

Buford Pruitt: Admins: I know that self-ads are verboten here, but my expertise comes from 6 years of research on div-producing US hREITs and it would be very difficult to discuss them without referencing the book. Think of me as a college professor teaching a course based on a book he wrote. Fair enough?

Hoda Mehr: Feel free to share your expertise with specific examples. But, don’t sell your book. Expertise is welcomed! Selling things is not! 😉

Otis Jenkins: Thanks for the insight! Cheers!

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