cancel
Showing results for 
Search instead for 
Did you mean: 
     
Highlighted
Contributor ○○

OHI ?!

Dividend Seekers, OHI has taken such a beating recently. It is currently yielding > 14% and less that 1/2 of 52 week high. Yes, I know there was some unfortunate CV at nursing homes recently. My limited research sees that whole sector of REITS beaten because of that. If we survive, there will still be people in need of these facilities, right? Is there something rg. OHI that makes them less likely to survive.   @BruceM , @cliff , @KathieL  @ElLobo .

Seperately, please take good care and be safe. rm

0 Kudos
9 Replies
Highlighted
Contributor ○○○

Re: OHI ?!

Yes, not sure why HC REITs are taking this pounding...and it is a pounding.

The only logic thread and can draw from this is the claims on their facilities will not be reimbursed for the cost of providing the services that will be required, meaning cash flows will be consumed by the operators who will not have the liquidity to pay their rent.

Just a guess

BruceM

Highlighted
Participant ○○

Re: OHI ?!

I am not a fan of REITS. I prefer buying commercial real estate directly.  

Gabe

0 Kudos
Highlighted
Frequent Contributor

Re: OHI ?!

"Yes, not sure why HC REITs are taking this pounding...and it is a pounding."

Not sure why MREITs, like Annaly Capital, have taken the same pounding.  They didn't cut their divey on Monday and their last quarter earnings beat estimates.  I know MBS/MREITs respond negatively to interest rate cuts (negative convexity), but that takes a month or two to precess a refinance!

Nor bonds, gold, silver, interest rates, and everything else, except short sales!  8-)

ElLobo, de la casa de la toro caca grande
0 Kudos
Highlighted
Contributor ○○

Re: OHI ?!

 


@BruceM wrote:

Yes, not sure why HC REITs are taking this pounding...and it is a pounding.

The only logic thread and can draw from this is the claims on their facilities will not be reimbursed for the cost of providing the services that will be required, meaning cash flows will be consumed by the operators who will not have the liquidity to pay their rent.

Thanks @BruceM

A good guess and I would expect a div cut but it just seems too beaten down. It's a small portion and I'l admit I spent the week's lunch money, I'm saving by working from home, by adding today.

 

 


 

0 Kudos
Highlighted
Participant ○

Re: OHI ?!

I like HC REITS.  They are beaten down right now, but I agree that they have a product people will want and need once the pandemic fades.  I do own OHI, but my favorite is MPW, which owns hospitals in the US and Europe.

0 Kudos
Highlighted
Frequent Contributor

Re: OHI ?!


@BruceM wrote:

Yes, not sure why HC REITs are taking this pounding...and it is a pounding.

The only logic thread and can draw from this is the claims on their facilities will not be reimbursed for the cost of providing the services that will be required, meaning cash flows will be consumed by the operators who will not have the liquidity to pay their rent.

Just a guess

BruceM


As the always astute Dr. V pointed out this morning, this crash is fast moving because a virus is easier to understand than a collateralized debt obligation that is improperly rated and bundled with other securities in an electronic file somewhere.

The virus reaction is simple.  Hey, this might directly affect ME. Once that connection is made, it is easier to see how it may affect others.

Ok, so knowing that the elderly are "at risk" and many nursing homes are locked down. Based on this premise, isn't it reasonable to assume that this virus might take a substantial row out of the elderly population?

Therefore, the market might be concerned about a sudden loss of occupancy as crass and indelicate as that sounds.

thank you

Holiday

0 Kudos
Highlighted
Contributor ○○

Re: OHI ?!


@Holiday wrote

Ok, so knowing that the elderly are "at risk" and many nursing homes are locked down. Based on this premise, isn't it reasonable to assume that this virus might take a substantial row out of the elderly population?

Therefore, the market might be concerned about a sudden loss of occupancy as crass and indelicate as that sounds.

I agree Holiday. But there will always be a new supply of occupants, as crass as that sounds. It’s a small holding and I’m throwing lunch money at it. It’s also paying 14% dividend that I’ll reinvest. Of course I’m expecting a cut, but still. Thanks for your opinion. rm


 

0 Kudos
Highlighted
Follower ○○

Re: OHI ?!

Reading between the lines a little,

There has been more senior housing built recently than is needed, just now. This has pushed the occupancy down a little.

If the Coronavirus tears through the senior housing communities and kills a lot of the current residents, that will make the current glut that much worse.

Eventually, it will all be filled and profitable, but not this year.

-Don Greenberg

0 Kudos
Highlighted
Contributor ○○

Re: OHI ?!

Up 33% today. Might not last but a glimmer of hope. Thanks to all who responded!

0 Kudos
Announcements

Morningstar is here to help you respond to the Coronavirus crisis.