Headquartered in Scottsdale, Ariz., Healthcare Trust of America (HTA) is a real estate investment trust (REIT) that invests in medical office buildings and healthcare-related facilities.
It has a portfolio with more than $2.6 billion worth of property that totals approximately 12.5 million square feet. HTA operates in 27 states, including key metropolitan areas such as Atlanta, Phoenix, Pittsburgh, Boston, Dallas and Houston.
Unlike many trusts, HTA doesn�t farm out property management responsibilities. HTA is a fully integrated, self-administered, self-managed REIT that oversees its own day-to-day operations. This structure keeps costs lower and net income higher.
Many investors are concerned about the state of the economy and the fragility of the recovery. But this health-care REIT is a steady, recession-resistant business. Its portfolio occupancy rate tops 91%.
And the trust is well managed. For the past few years, it has grown both organically and through acquisitions, taking advantage of downturns to pick up new properties on the cheap.
The trust earned approximately 60 cents a share in 2012, but I estimate those earnings will grow at least 10% this year.
That growth means the quarterly dividend -- offering a current yield of 5.3% -- is secure and likely to grow in the weeks ahead. I also see good capital gains potential here.
HTA recently hit an all-time high. It is only now being recognized by institutional investors as a deeply undervalued health-care play (especially with its high 5% dividend yield). HTA enjoys heavy insider buying. We continue to recommend purchase.
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