Skilled Nursing Facility (“SNF”) REIT, Omega Healthcare Investors (OHI) announced earnings on Thursday, and the business is in trouble. Despite Omega’s long history of paying big dividends (it currently yields 9.0%), it is currently facing more significant challenges now than at any other time in its operating history. In this report, we review the business, consider four pros and four cons, and then conclude with our opinion about investing.
Unique 7.2% Yield Healthcare REIT: Worth Considering
This unique 7.2% dividend yield triple-net healthcare REIT comes with its own unique risks and advantages. Its dividend is well covered and has been increased for 17 consecutive years, and the company fared better than other healthcare REITs during the pandemic. In this article, we review the business model, dividend safety, valuation and risks. We conclude with our opinion on investing.
Omega’s 10% Yield: Is Low Private Pay Now a Strength?
The high percentage of government-subsidized tenants (i.e. Medicare and Medicaid) of Omega Healthcare Investors (OHI) is often considered to be a bad thing (because the government creates painful pricing pressure that doesn’t exist among private pay tenants). However, in light of the coronavirus crisis, government support has become more attractive, and this shift is strengthened as Omega’s Skilled Nursing Facility (SNF) industry is in a much better place (in terms of supply and demand) than it was just a few years ago. In this report, we review Omega’s asset mix, market dynamics, dividend prospects, risks, and then conclude with our opinion on investing.
Simon Property: 5 Popular High Yield REITs, Due For A Pullback
As the market has climbed dramatically this year, so too have many popular high yield REITs, such as SPG, O, WELL, VTR, OHI, STAG and WPC. And despite the Fed’s recently decreased interest rate hawkishness, it is still concerning to see these popular “safe haven” REITs did NOT fall nearly as hard as the rest of the market during Q4 and their share prices & valuations are now unusually high. When sentiment changes, these popular REITS are due for a pullback, perhaps a big one. This article reviews valuations and concludes with our opinions.
Omega Healthcare: Tempting 7.2% Yield, But Know The Big Risks
Options Trade: Attractive REIT Income, Compelling Price Action
We just placed a new high-income-generating options trade. Near-term technicals are creating an attractive opportunity to generate income on an attractive long-term big-dividend REIT. We believe this is an attractive trade to place today, and potentially tomorrow, as long as the share price doesn't move too dramatically before then.
Blue Harbinger Weekly: Omega’s 7.3% Yield, Has Risk-Off Gone Too Far?
This week’s Blue Harbinger Weekly digs into specific investment ideas following the powerful market-wide “flight to quality” since October, including a detailed review and trading idea for big-dividend (7.3% yield) REIT, Omega Healthcare Investors (OHI). We also review the names on our Income Equity watchlist, as well as the results of an attractive Growth Equity stock screen, we provide an update on our market-wide health monitor, and we conclude with some ideas about how you might want to position your investment portfolio going forward.
The Most Loved & Hated Big-Dividend REITS
CBL and Tanger are two very hated retail REITs right now considering 40.3% and 53.0% of their shares (respectively) were recently sold short, and 0.0% of the Wall Street analysts covering them have a “buy” recommendation. Conversely, one of the big-dividend REITs we like and own has a negligible amount of short interest, and 100% of the Wall Street analysts covering it rate it a “buy,” as shown in the green bar chart. This update shares performance metrics on over 100 big dividend REITs, makes a few observations, and then highlights a couple of our favorites.
Omega Healthcare: Attractive 8.9% Yield, Big Risks Ahead of Earnings
There is a lot of gloom and doom surrounding big-dividend REIT Omega Healthcare (OHI). The negativity originates mainly from Omega’s many troubled operators. And investor fear has grown as short-interest remains high, the share price has been volatile, and the very recently announced termination of restructuring support for Orianna. With Omega expected to announce earnings this week, this article reviews the big risks before concluding with our views on who may or may not want to own this high-income REIT.
Blue Harbinger Weekly: Wide-Ranging Attractive Opportunities
Sometimes simply comparing a diverse opportunity set can help you see things in a valuable new light. This week’s Weekly reviews a specific growth stock on sale, shares a list of over 400 stocks with yields over 5% (many of which we have written about, and some of which we own), and finally considers the attractiveness of selling income-generating “covered call options” on two of the higher yielding securities on our list.
Omega Healthcare: 10% Yield, 5 Big Risks
Top 10 Big-Dividend REITs: The Mass Exodus Continues
High-yield REITs continue to sell-off as investors exit in droves. This article highlights performance (and more data) on over 100 high-yield REITs that have sold off significantly. We then explain why REITs have sold off, and provide our views on why some REITs are starting to look increasingly attractive. We conclude with details on 10 specific high-yield REITs that are increasingly attractive and worth considering.
Top 5 Big-Yield Investments to Start 2018
An Update on Our High-Yield REIT Holdings
Top 5 High-Yield Blue Chips for Contrarians
...More Safe Big-Dividend Ideas
7 Attractive Dividend Investments
This week’s Weekly provides an update and outlook for seven of our existing Blue Harbinger holdings. Specifically, we remain bullish on our healthcare REIT holding, we see more big gains on the industrials stock we purchased last summer, we remain comfortable with our commercial real estate position (despite signs the industry may soon slow), and finally, our four recent CEF purchases have seen their discounts to NAV start to shrink (a good thing), they continue to pay very large distributions, and we remain very bullish on their strategies.
An Attractive Investment Opportunity
Today we’re sharing an attractive investment opportunity for your consideration. It’s the type of investment that generally only works when market volatility is high. However, despite the VIX being at historically low levels, there are still pockets of high volatility in the market where the premium is attractive for selling insurance (puts) on stocks we’d like to own anyway.
We Own These 3 REITs In Our Income Equity Portfolio
This week’s Weekly reviews the three REITs we actually own in our Blue Harbinger Income Equity portfolio. One is a residential REIT with a unique business model and an important competitive advantage, one is a blue chip industrial REIT with access to many prime locations, and the third is a big-dividend healthcare REIT that offers a very compelling contrarian opportunity.
Omega Healthcare: Big Dividend, Big Evolving Risks
Omega Healthcare (OHI) pays a big growing dividend (7.2%), and it has recently underperformed many of its healthcare REIT peers. Some investors are quick to sing its praises as a “value play,” but it is most certainly exposed to very real risks. Specifically, the evolving skilled nursing facilities industry calls into question the source of Omega’s future revenues particularly with regards to entitlement reform. This article provides our views on Omega, and addresses the all-important question: Is Omega worth the risk?