Alternatives to Primary Health Properties (PHP)?

[richfool]

As a long term existing holder of PHP, and noting that the current yield has fallen to c 3.92% due to the capital appreciation to date (for me currently c 20%, - though I think it had previously reached c +30%), I have been looking at Target Healthcare REIT (THRL), as the latter has a dividend yield currently of: 5.86%

[funduffer]

THRL looks interesting.

Higher yield than PHP as you say. Slowly rising dividends over the last 5 years.

Invests in Care homes rather than GP surgeries, but not sure this counts for much.

Smaller market cap: £0.75b versus £2bn for PHP.

On a 7% premium, which needs considering.

I am looking for a REIT, so thanks for the thread.

FD

[idpickering]

As a long term existing holder of PHP, and noting that the current yield has fallen to c 3.92% due to the capital appreciation to date (for me currently c 20%, - though I think it had previously reached c +30%), I have been looking at Target Healthcare REIT (THRL), as the latter has a dividend yield currently of: 5.86%

Thanks for bringing Target to our attention. I hold PHP, and mentioned over on Company News Board earlier today that I was thinking of topping up my PHP holdings, taking advantage of the recent drop in SP. Obviously though, if the SP goes down, the yield goes up. I'm happy to stick with PHP and like the fact that their rents seem mostly a certainty. They're much larger out than Target too, so I'm 'keeping it simple' (KIS), and just sticking with PHP.

Ian.

[Millie]

As a long term existing holder of PHP, and noting that the current yield has fallen to c 3.92% due to the capital appreciation to date (for me currently c 20%, - though I think it had previously reached c +30%), I have been looking at Target Healthcare REIT (THRL), as the latter has a dividend yield currently of: 5.86%

I'm invested in Assura plc (AGR) which is another owner/operator of Doctors surgeries. I have to say that the yield is very similar to the yield you quote for PHP though.

[richfool]

As a long term existing holder of PHP, and noting that the current yield has fallen to c 3.92% due to the capital appreciation to date (for me currently c 20%, - though I think it had previously reached c +30%), I have been looking at Target Healthcare REIT (THRL), as the latter has a dividend yield currently of: 5.86%

I'm invested in Assura plc (AGR) which is another owner/operator of Doctors surgeries. I have to say that the yield is very similar to the yield you quote for PHP though.

Thanks for your thoughts on PHP, THRL and Assura.

I apologise for making my earlier post about THRL on the PHP thread on the share news board, at the risk of taking that thread off topic. However, I didn't want it to be on the HYP-P board, as I am not a HYP'er. I don't invest for HYP and I don't follow the doctrine. Indeed I invest for capital appreciation and income. And, this is about a Property Company/REIT.

I have therefore asked that it be moved to a thread on the Prop Coys & REIT's board.

[MDW1954]

Moderator Message:
Richfool, your original post was moved because it was reported for being on the Company News board despite not containing any news, or commenting on any news. Doing so took ten minutes out of a very busy day. Given that your post was about hunting for a higher yield, rather than growth or capital (as you now say that your focus is), I had a stab at it and made the best guess that I could. I'm not going to move it again. Life is too short. May I respectfully suggest that you re-post your original post on the REIT board yourself, and leave this thread to conclude as it will. As a non-HYPer, you are under no obligation to read it. --MDW1954

[Dod101]

It is said that THRL is invested in care homes. That would explain its higher yield since these are not exactly the same quality tenants as GP surgeries nor are most of the rents likely to be paid directly by a Government agency.

Chasing a higher yield is seldom a great idea, at least not without some serious research anyway.

Dod

[richfool]

In view of the above, I'm sure readers won't mind me highlighting the fact that my choice of of medical property type REIT, is strongly influenced by the prospect of capital appreciation, as well as income.

I currently hold PHP only.

[torata]

Invests in Care homes rather than GP surgeries, but not sure this counts for much.

Target Healthcare's tenants are care home operators, which immediately put me off, as care home operation consistently strikes me as a risky business model.
https://www.theguardian.com/society/2019/mar/11/over-400-care-home-operators-collapse-in-five-years-as-cuts-take-toll

The two social housing REITs had seemed to me to have more 'robust' tenants, in the form of housing associations, but even they seem to be suffering.
https://citywire.co.uk/wealth-manager/news/civitas-blow-up-forces-big-reappraisal-of-social-housing-risks/a1561273

Torata

[Dod101]

[Cited post deleted.]

Let's not start another controversy. The thing about PHP and I guess Assura is that their income is all but absolutely guaranteed and capital appreciation tends to follow as time goes by. Moving in to the care home sector or even housing associations is increasing the risk profile. If that is what the OP wants fine; but not for me.

Dod

[Arborbridge]

In view of the above, I'm sure readers won't mind me highlighting the fact that my choice of of medical property type REIT, is strongly influenced by the prospect of capital appreciation, as well as income.

I currently hold PHP only.

Interestingly, I've just topped up my PHP holding. The forecast yield is 4.1%, a bit below my desired yield, but the best choice in that particular broker account.

Arb.

[Dod101]

In view of the above, I'm sure readers won't mind me highlighting the fact that my choice of of medical property type REIT, is strongly influenced by the prospect of capital appreciation, as well as income.

I currently hold PHP only.

Interestingly, I've just topped up my PHP holding. The forecast yield is 4.1%, a bit below my desired yield, but the best choice in that particular broker account.

Arb.

Anything around 4% is fine by me especially for quality income like PHP.

Dod

[Arborbridge]

In view of the above, I'm sure readers won't mind me highlighting the fact that my choice of of medical property type REIT, is strongly influenced by the prospect of capital appreciation, as well as income.

I currently hold PHP only.

Interestingly, I've just topped up my PHP holding. The forecast yield is 4.1%, a bit below my desired yield, but the best choice in that particular broker account.

Arb.

Anything around 4% is fine by me especially for quality income like PHP.

Dod

I mostly agree - I can buy around 4% or more for good companies, so I don't stray much less, except for ITs. My nominal rule is that I should exclude nything at 10% less than my average HYP yield, currently at 5.2%, so you see PHP is a bit of an outlier purchase. It's also "underwater" in my portfolio, so buying more at this price is either a good thing or a folly

[Dod101]

I bought in 2016 at £1.18, although of course capital does not matter! It is off its top of around £1.65 at the moment so it might not be a bad time to buy. It is one of those shares that I will just keep and not monitor too closely.

Dod

[idpickering]

Interestingly, I've just topped up my PHP holding. The forecast yield is 4.1%, a bit below my desired yield, but the best choice in that particular broker account.

Arb.

Anything around 4% is fine by me especially for quality income like PHP.

Dod

I mostly agree - I can buy around 4% or more for good companies, so I don't stray much less, except for ITs. My nominal rule is that I should exclude nything at 10% less than my average HYP yield, currently at 5.2%, so you see PHP is a bit of an outlier purchase. It's also "underwater" in my portfolio, so buying more at this price is either a good thing or a folly

My account is set up to buy more PHP next month, as of now that’ll be an 11% top up in capital value terms. Things might change by next month though, but that’s my plan currently.

Ian

[Arborbridge]

I bought in 2016 at £1.18, although of course capital does not matter! It is off its top of around £1.65 at the moment so it might not be a bad time to buy. It is one of those shares that I will just keep and not monitor too closely.

Dod

Or, alternatively, as you said on another thread:

This exercise proves nothing except that non tinkering is not an option in real life.

[Dod101]

I bought in 2016 at £1.18, although of course capital does not matter! It is off its top of around £1.65 at the moment so it might not be a bad time to buy. It is one of those shares that I will just keep and not monitor too closely.

Dod

Or, alternatively, as you said on another thread:

This exercise proves nothing except that non tinkering is not an option in real life.

Yes but the comment about not being a non tinkerer was in the context of what had happened to HYP1 over a 21 year period. Not at all the same thing. I have a history of non tinkering when I can but of course if things get out of kilter i will tinker.

Dod

[Arborbridge]

I bought in 2016 at £1.18, although of course capital does not matter! It is off its top of around £1.65 at the moment so it might not be a bad time to buy. It is one of those shares that I will just keep and not monitor too closely.

Dod

Or, alternatively, as you said on another thread:

This exercise proves nothing except that non tinkering is not an option in real life.

Yes but the comment about not being a non tinkerer was in the context of what had happened to HYP1 over a 21 year period. Not at all the same thing. I have a history of non tinkering when I can but of course if things get out of kilter i will tinker.

Dod

Only a leg pull

[richfool]

I am again being tempted by Target Healthcare REIT (THRL). It has an appetising yield of 6.35%, whereas my existing holding of PHP is only yielding:4.76%. The SP of both have been falling over recent months, but PHP more so.

https://www.hl.co.uk/shares/shares-sear ... plc-ord-1p

https://www.hl.co.uk/shares/shares-sear ... ary-shares

This of course should be on the REIT board.

[BullDog]

I am again being tempted by Target Healthcare REIT (THRL). It has an appetising yield of 6.35%, whereas my existing holding of PHP is only yielding:4.76%. The SP of both have been falling over recent months, but PHP more so.

https://www.hl.co.uk/shares/shares-sear ... plc-ord-1p

https://www.hl.co.uk/shares/shares-sear ... ary-shares

I have been tempted myself by Target, but I am already overweight in other REITs.