UPDATE: 7 big ways to invest your money in 2015
Health Care Property HCP turned in an excellent second-quarter report in which revenue jumped 19%. Rising occupancies, inflation-based rent bumps, and additional rents from recent acquisitions boosted revenue growth significantly. Costs remain well-contained thanks to the company's triple-net lease ...
Our favorites can do well even with potentially higher interest rates.
Rising interest rates can be a valuation headwind for the REIT sector, but some REITs are better positioned than others, says Morningstar's Todd Lukasik.
Current valuation levels imply mediocre total returns and an elevated risk of a material drawdown.
U.S. REITs appear somewhat overvalued as a group, but we see some opportunities in the health-care, retail, and cell tower sectors.
We prefer the yield, stability, and growth prospects of the triple-net structure over RIDEA.
This health-care REIT, MLP, and oil-services firm stand out as relative bargains in today's richly valued market, says Morningstar's Matt Coffina.
In a rising interest rate environment, which is generally tough on REITs, we'd prefer exposure to reasonably priced, narrow-moat firms with attractive internal and external growth prospects, conservative capital structures, and well-laddered debt maturity schedules.
Though many long for faster economic growth, the current environment has actually been very good for landlords--but higher rates could still sting.