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Senior Housing Properties

Senior Housing Property Trust NYSE:SNHYield: 5.7%
12-Month Return: +26% vs. +14% for the S&P 500

Just as the name implies, Senior Housing Properties Trust (NYSE:SNH) is a real estate investment trust that owns and operates senior living facilities across the U.S. This is the ultimate recession-proof play, since the demographics of an aging baby boomer population is perhaps the only sure thing that investors can count on right now.

Senior Housing Properties owns 369 properties across 38 states that include senior living communities as well as rehabilitation hospitals, labs and other medical facilities. This reliable revenue stream from tenants and patients allows for stability, and the REIT status means that 90% of taxable income is delivered back to shareholders via a plump 5.7% annualized yield.

SNH just held a secondary stock offering in January to raise about $238 million to pay down debt and fund future acquisitions. At roughly $5 billion in market cap, Senior Housing is smaller than bigger senior care and health care REITs out there like HCP (NYSE:HCP) or Ventas (NYSE:VTR). But with fiscal 2012 revenue up about 120% from fiscal 2009, clearly this is an REIT that isn’t content to merely stay sleepy and throw off a dividend.

Article printed from InvestorPlace Media,

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