Long-term care can also be important to an aging population, which is an area where LTC Properties excels. The bulk of its properties are split between skilled nursing facilities and assisted living facilities, though some of the investments are through loans and not strictly property leases. That said, only 18% of its current portfolio expires prior to 2017, providing some predictability to its future earnings.
Travel and leisure
The final two companies on the list boast diverse portfolios that are a little more exciting than the other three. Entertainment Properties Trust has a very diverse portfolio of properties, including movie theaters, family entertainment centers, metro ski parks, water parks, and public charter schools. The majority of its investments — around 57% — remain in “megaplex” theaters, which can see attendance change based on the quality of the movies available. Nevertheless, people will continue to go to the movies, and Entertainment Properties Trust will be there to reap the rewards.
Finally, Hospitality Properties Trust invests in a variety of hotels and travel centers across the U.S., with a total of 475 properties located in 44 states. Many of these locations operate under such nationally recognized brands as TravelCenters of America LLC (NYSEMKT:TA), Marriott International, Inc. (NYSE:MAR), and Wyndham Worldwide Corporation (NYSE:WYN) Hotel Group, among others. It’s hard to avoid seeing one of its 145 travel centers along the various highways of the country, and it also benefits from a diverse mixture of hotel brands. For investors, the bulk of its current debt matures in 2017 or later, giving it a long lead to renew its many lease agreements while providing it in steady income to maintain its sizable dividend, which is the highest of the five REITs on this list.
My choice is…
All five of these REITs provide opportunities for differing reasons, but all have seemingly strong balance sheets with small debt loads. Of the five, however, I favor Government Properties Income Trust, if only because its tenant base skews to some organizations that can’t really avoid paying rent, even in the worst of times. A close second would be Hospitality Properties Trust, primarily because of the size of its dividend and its presence on many of the highways across this country.
The article 5 Overlooked REITs to Boost Your Portfolio originally appeared on Fool.com and is written by Robert Eberhard.
Fool contributor Robert Eberhard has no position in any stocks mentioned. The Motley Fool owns shares of Annaly Capital Management.
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