Jenny Harrington, CEO, Gilman Hill Asset ManagementSabra Health Care REITSBRASTRONG BUYJan 02, 2026
Her top pick of 2026. Trades at 12x FFO, half the market's, and pays a 6.5% dividend. They are in the nursing space (retirement and skilled), and behavioural health. Enjoys demographic winds. Earnings to grow 5.5% this year. Up 17% last year, so has momentum as well as fundamentals. Is not threatened by AI, and could even benefit Sabra.
Conventional wisdom says to avoid REITs and bond proxies when interest rates rise. But many REITs are solid businesses trading at reasonable valuations and paying good dividends. Untrue: commercial real estate is bad but avoid strip malls. Those REITs are down so much that there'll be upside in 2023.
Her top pick of 2026. Trades at 12x FFO, half the market's, and pays a 6.5% dividend. They are in the nursing space (retirement and skilled), and behavioural health. Enjoys demographic winds. Earnings to grow 5.5% this year. Up 17% last year, so has momentum as well as fundamentals. Is not threatened by AI, and could even benefit Sabra.