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Run And Hide From These Two Wretched REITS

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Page 2: Run And Hide From These Two Wretched REITS

Welcome to Dividend Stocks Research Your premier site for

Rankings and Reviews of the best dividends stocks around. For more

info on dividend stocks visit our website

DividendStocksResearch.com

Page 4: Run And Hide From These Two Wretched REITS

Run And Hide From These Two Wretched REITS

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What’s not to love about a company that has doctors as it clients?

 A company that owns more than

$500 million worth of medical office buildings, and collects rent like

clockwork from doctors and health care businesses?

 

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Physicians Realty Trust (DOC)

After all, the doctors aren’t going to walk out their leases, are they?

 Well... 

You’d think not. And you’d figure that a REIT with medical office buildings would be a safe bet.

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Physicians Realty Trust (DOC)

But here’s the problem with Physicians Realty Trust (DOC).

 It doesn’t make very good real

investments. Take a look at the net margins, and you’ll see they’re -23%.

Return on equity is -3%.  

These are well below industry averages. 

Page 8: Run And Hide From These Two Wretched REITS

Physicians Realty Trust (DOC)

And there’s another reason Physicians Realty Trust isn’t a healthy addition for

your portfolio.  

It’s paying out more in dividends than it can afford. Something’s got to give

when your payout ratio is over 100%.  

Takes two aspirins and cancel your appointment with DOC.

 

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Physicians Realty Trust (DOC)

 Dividend Yield: 6.25%Annual Payout: .90

Payout Ratio: 101.1%But here’s the problem with

Physicians Realty Trust (DOC).

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Physicians Realty Trust (DOC)

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Trailer Parks – No Foundations!

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You guessed it. 

A REIT that owns what the industry calls “manufactured home communities.”

 Granted, some of these homes don’t look

like trailers. 

But when you look at UMH Properties (UMH), a REIT with 86 communities,

14,800 developed home sites, you want to run for cover.

 

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UMH Properties (UMH)

If tornadoes seem to have a fondness for crashing through trailer parks, you know it’s just a matter of time before

UMH Properties takes a thrashing. 

Why?  

Do you think a dividend payout ratio of 101.1% is bad? How about 128.6%?

 

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UMH Properties (UMH)

Net margin is -5%, and return on equity is -3.5%.

 And expenses are soaring, up 23%

the first quarter of 2014 over 2013.  

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UMH Properties (UMH)

All in all, not a good neighborhood for a dividend investor.

 Best to go manufacture your dividends someplace else.

 Dividend Yield: 7.35%

Annual Payout: .72Payout Ratio: 128.6%

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UMH Properties (UMH)