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 ...
UPDATE: 12 highest-yielding 'dividend aristocrat' stocks
LMP Real Estate Income Fund Inc. Portfolio Composition as of September 30, 2014
U.S. REITs appear somewhat overvalued as a group, but we see some opportunities in the health-care, retail, and cell tower sectors.
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.
Our favorites can do well even with potentially higher interest rates.
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.
Current valuation levels imply mediocre total returns and an elevated risk of a material drawdown.
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.
We prefer the yield, stability, and growth prospects of the triple-net structure over RIDEA.