EPR Properties
This REIT invests in some of the most popular entertainment companies. EPR Properties Inc. (NYSE: EPR) is a leading experiential net lease REIT, specializing in select enduring experiential properties in the real estate industry.
The company is focused on real estate venues that create value by facilitating out-of-home leisure and recreation experiences in which consumers choose to spend their discretionary time and money. It has nearly $6.7 billion in total investments across 44 states. EPR Properties adheres to rigorous underwriting and investing criteria centered on key industry-, property- and tenant-level cash flow standards, and it believes a very focused approach provides a competitive advantage and the potential for stable and attractive returns.
EPR Properties posted strong results recently, with funds from operations (FFO) that exceeded Wall Street estimates and were up big from last year’s print. The company has eclipsed FFO estimates for the past four quarters.
Shareholders receive a 7.82% distribution. BofA Securities has set a $55 target price, below the $56.57 consensus target on EPR Properties stock. The shares closed trading on Friday at $42.21.
Gladstone Commercial
This stock was hit hard as interest rates charged higher and is offering the best entry point in over a year. Gladstone Commercial Corp. (NASDAQ: GOOD) is focused on acquiring, owning and operating net leased industrial and office properties across the United States.
As of June 30, 2021, Gladstone owns a diversified portfolio of 121 office and industrial properties located in 27 states and leased to 106 tenants. The company has grown the portfolio in a consistent, disciplined manner at a rate of 18% per year since the IPO in 2003. It matches long-term leased properties with long-term debt to lock in the spread to create a durable, stable cash flow stream to fund monthly distributions to shareholders. Current occupancy stands at 96.5% and occupancy has never dipped below 95.0% since the IPO.
Most importantly for investors, Gladstone has a track record of success, as exhibited by a history of strong distribution yields, consistent occupancy greater than 95.0%, and 10+ years of paying continuous monthly cash distributions.
Investors receive an 8.06% distribution. The $23 B. Riley Securities price target on Gladstone Commercial stock is just less than the $23.60 consensus target. Friday’s close was reported at $18.67 a share.
Main Street Capital
This Wall Street favorite also offers very solid upside potential. Main Street Capital Corp. (NASDAQ: MAIN) is a private equity firm specializing in equity capital to lower middle-market companies. The firm also provides debt capital to middle-market companies for acquisitions, management buyouts, growth financings, recapitalizations and refinancing.
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