Investing

6 Inflation-Busting REITs to Buy That Pay 5% or Higher Distributions

Most importantly for investors, Gladstone has a track record of success, as exhibited by a history of strong distribution yields, consistent occupancy and more than 10 years of paying continuous monthly cash distributions.

Investors receive a 7.07% distribution. Colliers Securities has a Wall Street high $26 price target. The consensus target is $25.25, and the last trade for Monday was reported at $21.30.

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 it draws on its credit facility (low-2% current cost of debt). Collections have outperformed expectations during the pandemic. Cost of capital is tied to benefits of diversification and external growth potential.

Inventors receive a 5.43% distribution. The B. Riley Securities price target is $18, while the consensus target is $18.50. The last trade on Monday was posted at $15.11.

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 5.76% distribution. The $26 Credit Suisse price target is a Wall Street high. The consensus target for Medical Properties Trust stock is $25.00, and shares closed on Monday at $20.13.

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