Why I Think This Is the Best Real Estate Stock
Real estate stocks are sometimes relegated to the "widow and orphans" section of investment accounts. They're typically low risk, low excitement and modest returns. At least they were, until the past few years when real estate stocks first soared, thanks to easy money fueling increased demand, only to then tumble en masse. Many real estate stocks are down 30% or more this year. That presents a great buying opportunity for investors.
My favorite real estate stock is Medical Properties Trust (NYSE: MPW). Medical Properties is a niche REIT that owns and leases buildings to hospital operators. It was founded to pair the REIT's real estate and financing experts with hospital operators, which traditionally have the expertise to run a hospital but not the knowledge necessary to secure the large amount of financing necessary to build one.
Medical Properties offers investors an enticing combination of growth, value, yield, and economic resilience. Like most real estate stocks, it's down this year -- currently by about 34%. Investors who can hold their nose in the short run will likely reap good gains in the long run. Let's discuss why Medical Properties is a good value now.
Source Fool.com
