Global Medical REIT
Income investors should take a long look at this company. Global Medical REIT Inc. (NASDAQ: GMRE) engages in the acquisition of purpose-built health care facilities and leasing of those properties to strong health care systems and physician groups.
The company acquires off-campus health care facilities at 7.0% to 8.5% cap rates, funded with a low- to mid-6% cost of equity and draws on its credit facility (low-2% current cost of debt). Collections have outperformed expectations during the pandemic. The cost of capital is tied to the benefits of diversification and external growth potential.
Inventors receive a 4.94% distribution. The B. Riley Securities price target is $18, and the consensus target is $17.44. The stock closed on Thursday at $16.60.
Medical Properties Trust
This stock may offer investors the best value at current price levels. Medical Properties Trust Inc. (NYSE: MPW) acquires, develops and invests in health care facilities and leases health care facilities to health care operating companies and providers. The company also provides mortgage loans to health care operators, as well as working capital and other term loans to its tenants/borrowers.
With a growing portfolio and a versatile business model, the company continues to rank high across Wall Street. The analysts noted that the company’s acute care hospitals rent coverage increased nicely and the company attributed the increase to better cost controls and higher patient admissions.
Shareholders receive a 5.16% distribution. The $27 Deutsche Bank price target on Medical Properties Trust stock is higher than the $23.54 consensus target. The shares closed on Thursday at $21.70.
MGM Growth Properties
This company is a triple net lease REIT formed in April 2016 when it was spun out of MGM Resorts. MGM Growth Properties LLC (NYSE: MGP) is one of the leading publicly traded REITs engaged in the acquisition, ownership and leasing of large-scale destination entertainment and leisure resorts with diverse amenities including casino gaming, hotel, convention, dining, entertainment and retail offerings.
The company, together with its joint venture, currently owns a portfolio of properties, consisting of 12 premier destination resorts in Las Vegas and elsewhere across the United States; MGM Northfield Park in Northfield, Ohio; Empire Resort Casino in Yonkers, New York; as well as a retail and entertainment district, The Park, in Las Vegas.
The destination resorts collectively comprised approximately 27,400 hotel rooms, 1.4 million casino square footage, and 2.7 million convention square footage. As a growth-oriented public real estate entity, the company expects its relationship with MGM Resorts and other entertainment providers to position the company attractively for the acquisition of additional properties across the entertainment, hospitality and leisure industries.
Investors in MGM Growth Properties stock receive a 5.28% dividend. Deutsche Bank has set a $43 price target. The consensus target is $40.75, and the stock closed at $39.43 on Thursday.