Question: Where are people going?
While I thought hotels and hospitality REITs like RHP and APLE were good investments, the Coronavirus has upended that segment in more drastic ways that might be more long-lasting and even catastrophic for the foreseeable future. That is why I sold my shares of RHP and APLE – especially when they both suspended their dividends.
Another REIT stock we own is Medical Properties Trust (MPW). The main ingredient in this REIT is hospital properties. This includes general acute care hospitals, inpatient rehabilitation hospitals and long-term acute care hospitals. These facilities are in the USA, the UK, Germany, Australia, Switzerland and Spain. They also own Women’s and Children’s Hospitals, Regional and Community Hospitals, Medical Office Buildings and Single-Discipline Facilities like cardiovascular hospitals and cancer centers.
Here is why I like MPW: 1) Sadly, the hospital business is picking up; 2) Unfortunately, most of us will continue to need hospitals sometimes for joyous occasions like births and sometimes for extremely difficult times; 3) They are geographically diverse; 4) They have a conservative investment approach and 5) They have diversification in the types of properties they buy.
We own 2,600 shares of MPW and Cindie’s mom has 200 shares in her brokerage account. I bought more shares last week.
This Seeking Alpha contributor talks about this investment in more detail. LINK.
Reminder: While there are no totally safe investments, unless you count how you invest your time for eternity, there are some investments that make more sense than others.