Senior Housing Properties Trust
As the name implies, Senior Housing Properties Trust (SNH) is a real estate investment trust that plays senior housing. SNH operates about 370 properties around the U.S., including senior living communities and related medical businesses.
Senior Housing Properties Trust pays a very nice 6.3% dividend … although right now the company is paying out more in dividends than it makes in profits, thanks to a spate of acquisitions in the last few years and a lot of debt taken on as part of these deals. But the flip side is that these ambitious acquisitions — like a 2011 deal worth over $300 million to acquire 20 senior living facilities — have allowed Senior Housing Properties Trust to become a dominant player in the space.
And recently, Senior Housing Properties Trust also entered a deal to sell off some rehab facilities to generate some cash and focus on its senior housing mission.
SNH is only up by about 5% so far in 2013, but in an inflationary environment the real estate holdings will allow this stock to move higher. After all, nothing holds its value amid high inflation better than hard assets like real estate — and the sites Senior Housing Properties owns will be able to command higher rents and deliver even bigger dividends to shareholders.