This 7.7%-Yielding Healthcare REIT May Be A Speculative Buy

This company revealed problems with one of its largest tenants in April. The REIT reported declining revenues and AFFO/share in the first quarter. On the back of operator problems and deteriorating dividend coverage, the company slashed its dividend by 61 percent. Shares are lowly valued after the sell-off. An investment in the stock yields 7.7 percent.

Senior Housing Properties Trust (SNH) is not in an envious position: The healthcare real estate investment trust announced a major restructuring with respect to one of its largest operators in April which caused the stock to slump. Rental revenues and AFFO/share also dropped in the last quarter, causing the REIT to underearn its dividend. As a result, Senior Housing Properties Trust slashed its dividend by 61 percent, which exacerbated the sell-off. An investment in SNH at today's price point yields 7.7 percent.

Source: Seeking Alpha

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