Hello fellow investors,
Last week 3 of my 4 REITs had Earnings Reports.
$ESS - Apartments West Coast
$AVB - Apartments East/West Coast
$OHI - Senior Care Facilities
So let's take a look:
Apartment REITs are doing good across all the US.
Rents are increasing, occupation too and as we can see Costal one, which suffered more in the covid era, are now back on track. As we can see from the next chart, both
$ESS and
$AVB are now trading higher than the pre-covid ATH, a sign that the market considers the sector fully recovered.
I was lucky to average down on both these REITs during 2020, having now a wonderful
$ESS +36% and
$AVB +54%. But, of course, I am not planning to sell these dividend beasts anytime soon.
Regarding Healthcare and Senior Living REITs, the situation is a bit worse.
Even both my investments,
$NHI and
$OHI, didn't report any additional dividend cut, they are still struggling cause the industry is under pressure.
Rent collection and occupancy are a bit low, creating danger for the sustainability of their dividends.
The situation is not good. But I believe in the future needs of Senior Housing and Skilled Nursing Facilities.
Stocks are trading way under the pre-covid levels, and there is a great opportunity for a strong price rally if they can survive such hard times.
I don't plan to increase my investment at this stage; for sure, I will first wait for the Earning Reports of
$NHI, which will be the end of February, before taking any decision.
Do you invest in REITs? What's your vision of the market?
Let me know 👇