Fitch Upgrades Health Care REIT, Inc.'s IDR to 'BBB+'; Outlook Stable
DaVita HealthCare Partners Inc. 4th Quarter 2014 Results
Starting from current valuations, stocks simply aren't capable of delivering double-digit annualized total returns, says Morningstar's Matt Coffina.
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 ...
Rising interest rates could be a major valuation headwind for REITs, so investors should focus on moaty landlords with good growth prospects and attractive relative valuations.
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.