The uncertain effects of larger economic trends may be part of the reason for analysts at finance firms to be lowering their price targets for these real estate investment trusts (REITs). If you own property, you are concerned about inflation and interest rates, and REITs whose business models are also dependent on such factors.
Community Healthcare Trust CHCT owns 158 properties in 34 states with a portfolio consisting of medical office buildings, physician clinics, outpatient diagnostic and treatment centers and related holdings. Analyst Michael Truist at Truist Securities has a “buy” rating on the units but just lowered his price target from $49 to $44, a 10% reduction. The REIT currently pays a dividend of 4.92%.
Physicians Realty Trust DOC headquartered in Milwaukee, Wisconsin, owns medical office buildings and healthcare facilities around the country and currently pays investors a 5.54% dividend. Truist Securities analyst Michael Lewis maintains his “hold” rating for the units but has lowered his price target from $18 to $17, a reduction of 5.5%.
Crown Castle International Corp CCI holds communications infrastructure including towers, small cells and fiber. The company has more than 80,000 “route miles” of fiber, according to its website. A 3.41% dividend is paid. Analyst Michael Rollins at Citigroup is maintaining his “buy” rating on the REIT but has lowered his price target from $204 to $200, a reduction of just 0.2%.
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