HealthLease Properties REIT (HLP.UN-T)

Seniors accommodation, skilled nursing facilities, hospital outpatient accommodation, etc. The US market is much more complicated than what we are familiar with regarding their healthcare system. He has had a lot of difficulty understanding this company’s business. If large companies are having difficulty understanding these businesses, you may have the same difficulty.

US senior care as well as a portfolio in the Calgary region. The risk on the property level is with the operator as they just write one lease. He has questions about funding of growth in the US as well as focus of management who are focusing on growing their private company.

Has Canadian as well as US properties for long term senior’s care. A triple net model in that they have one lease to a company, which in turn manages the care. That takes a layer of risk out. Sold his holdings after management started making unilateral changes for their own benefit. There are other ways to play the seniors’ angle. 8.2% yield.

Got out before it sold off. Medical facilities in the US. Lots of development potential. There is not that much cash flow growth organically. Federally reimbursed 8.4% yield.

A great, high-yield vehicle. Very stable. Canadian and US assets. Trading at about NAV at these levels. Good company that gives an opportunity to get a very safe yield. Understand that you are highly affected by the US healthcare space and those stocks have come down.

One of the newer IPOs in Canada. Focused on skilled nursing retirement homes in US and Canada. Have done a very good job since their IPO in raising capital, purchasing assets and are poised to bring on developments they’ve have been working on. This has contributed to free cash flow, which has developed into 13% free cash flow growth. Have traded lower because of the sentiment in the REIT sector. Leverage is sustainable. Yield should be sustainable going forward.

Mostly American and partly Canadian 3^rd party managed long-term seniors care facilities. Advantage of the structure is that all the risks of operating are in the hands of the tenant. They don’t worry about occupancy. They have one master lease that is managing the property. Because of this, they are trading at around the value of their properties, and you should use this as your primary source of return with a little bit of upside. Thinks that they will continue to grow this business. Have always had a higher yield and is currently at 8.9%.

(Market Call Minute.) Just hold this one for income.

They own senior care homes, but on a triple net lease structure. They don’t have the risk of operating the buildings. They just own the building and lease it to someone else who manages the operation. Mostly in the US, in the Chicago, Illinois area. Feels it is trading a little bit above NAV, but it gives you a very good yield. The 8.25% yield is very safe.

Gives you exposure to US markets but they do it differently. They lease to a US operator, which handles all of the risks. This company just gets the income stream. He likes this model. 8.2% dividend yield is safe.

What would you recommend for a high end assisted living property investment? It’s a risky call this week because there are a lot of REITs in the sector that focus on assisted living. The 2 he follows are Chartwell (CSH.UN-T) and Healthlease (HLP.UN-T). This is a newer one. So far so good in their performance as a public company but Chartwell is bigger and more diversified. If interest rates went up to 10%, these are going to get hit.

Healthcare in the US. He likes the way you get it at a discount with a higher yield. The worst is behind it.

How much is healthcare going to change in the US. This is not a company he follows. Definitely an area to look at.