Listed property trust says its defensive portfolio weathered the storm.
Vital Healthcare Property Trust, the fourth largest listed property vehicle and the only specialist healthcare landlord on the NZX, has had a buoyant half year to December 31st, 2020 as the global pandemic underlined the primacy of healthcare.
The owner of a trans-Tasman $2.25 billion healthcare property portfolio, of which 28% sits in New Zealand and 72% in Australia, said the company’s results despite the Covid pandemic highlighted Vital’s defensive characteristics.
The trust, externally managed by a subsidiary of Toronto-listed, global healthcare real estate owner and manager, NorthWest Healthcare Properties, increased its post-tax property income by 7.5% (excluding foreign exchange
NorthWest Healthcare Properties REIT (TSX:NWH.UN).
These Canadian companies offer high yields and generate resilient cash flows, implying that their yields and future payouts are safe.
Enbridge
Enbridge stock is yielding about 7.6% at the current price levels, which is very safe. Its more than 40 diversified cash flow streams, cost and productivity improvements, and incremental EBITDA from the secured projects are likely to drive its earnings and cash flows and support its higher dividend payments.
It has raised its dividends for 26 years in a row and could continue to hike it further in the future, thanks to the strength in its core business and recovery in mainline volumes. Enbridge projects its DCF (distributable cash flow) per share to increase by 5-7% over the next three years, implying that its dividends could rise at a similar pace.
Housing prices continue to soar to greater heights, making a housing crash happening more devastating, and investing in Northwest Healthcare could be an ideal move.
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