With the minimum commission fee for Standard Chartered looming, I felt it would be prudent to sell off or consolidate my smaller holdings. Having done so on my SGX portfolio, it was time to take some action on my NTSE portfolio as well. I sold off all my holdings in BP and Berkshire, and topped it up with some cash which i then used to add more shares of Omega Healthcare Reit.
Omega Healthcare Reit is an US based reit which deals mainly with properties which houses Senior Nursing Facilities. Simply put it owns facilities that does after care services for senior citizens after they are discharged from hospitals.
With an ageing population the business is likely to grow. Also, the properties under this reit are mostly on triple net leases, meaning that they only provide the property; taxes, utilities, management etc are all paid by the tenant, making it a low cost operation for the reit.
Main source of income for the reit is through government reimbursement for the patients, so barring an order by the government to stop healthcare reimbursements (highly unlikely as seniors are a significant voting bloc there), income is unlikely to drop. In fact, the reit has increased their dividend payments for 16 consecutive quarters, up till the present $0.60 per share per quarter, for an annualised 6-7% annual yield, depending on your entry price in the past 1-2 years.
OHI is now my sole remaining stock outside of Singapore, and fingers crossed that it do well as I expect it to.
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