The Best Healthcare REIT to Buy in 2018

Editor's Note: This one pick paid 100% in seven days, then 205% the next day, and 410% by the next week. You've got to see how it's done...

Everyone already knows healthcare real estate investment trusts (REITs) can be consistent income generators, with REITs required to distribute 90% of their taxable income to shareholders.

In exchange, these trusts are exempt from federal income tax.

Also, global healthcare spending is projected to reach $8.7 trillion by 2020, which will benefit healthcare REITs. The more money they make, the more demand there is for REITs, which sends share prices higher.

For savvy investors, this is a great source of consistent, alternative income.

But not everyone knows the best healthcare REIT to buy in 2018.

That's why I turned to Money Morning Special Situation Strategist Tim Melvin.

Best Healthcare

"There are a bunch of listed real estate operating companies and REITs available for investors to consider. Picking which one to buy is a simple matter of bargain hunting," Melvin told me.

Melvin is a 27-year veteran of the financial services and portfolio management industries, serving as a broker for millionaires for more than two decades.

He's also a top authority on private equity and value investing, and he's constantly on the lookout for stocks trading for less than they're worth.

And he's found one in the healthcare market...

You see, the number of Americans ages 65 and older is projected to skyrocket 113.04%, from 46 million in 2016 to 98 million by 2060.

More and more seniors will move into healthcare facilities and need to visit physicians, which means healthcare REITs will generate more revenue.

And Melvin's found a diamond in the rough...

In the next 12 months, investment bank B. Riley FBR Inc. expects the price of this healthcare REIT to climb 56.25%.

On top of that, this company pays a dividend of $0.80, which is a massive yield of 11.05%.

But if you want to potentially make those double-digit returns, you have to invest right now...

In a Volatile Market, You Have to Own This Healthcare REIT

[mmpazkzone name="in-story" network="9794" site="307044" id="137008" type="4"]

When Melvin looks for an opportunity in healthcare REITs, he asks four questions:

  1. How old are the buildings?
  2. Are the buildings older and in need of capital expenditures to update them?
  3. Is the REIT in a competitive market with a lot of competitive properties?
  4. Does management have experience in healthcare related real estate, or are they just real estate veterans?

One healthcare REIT that passes all his tests is Global Medical REIT Inc. (NYSE: GMRE).

"Management has deep healthcare real estate experience, and they specifically target practices that will be in high demand from older healthcare consumers. They look for dominate providers with a strong local or leading regional facility operators as tenants," Melvin said.

"They have a nice mix of property types, including surgical center, hospitals, assisted living facilities, and rehab centers."

For example, its property in Oklahoma City houses a hospital, physical therapy center, and ambulatory (same-day) surgery center. That gives GMRE a diverse revenue stream, which helps make it immune to any downturns in the U.S. economy.

People will always need to visit hospitals, physical therapy centers, and to receive same-day surgery.

And analysts are joining Melvin on his bullish outlook...

All four analysts who cover GMRE stock recommend it as a "Buy." In the next 12 months, investment bank B. Riley FBR Inc. expects the stock price to climb to $10.50 per share.

From today's price of 6.72%, that's a 56.25% profit in 12 months.

On top of that, GMRE pays a dividend of $0.80, which is a massive yield of 11.05%.

Recently, CEO Jeffery Busch bought 6,000 shares of GMRE between March 12 and March 13, and the company is reporting earnings for Q1 2018 on May 10.

By buying shares ahead of earnings, it's a good sign he expects the GMRE stock price to rise.

In the first quarter, analysts on average expect the REIT to report $11.50 million in sales.

That would be a 146.78% increase from the same time last year.

All signs are pointing to GMRE being a long-term investment, which is why we wanted to bring it to your attention right now.

Speaking of investments to make right now, we also have a bonus profit opportunity that we wanted to share.

If you're looking to end 2018 with $1 million in your account, start right here...

Technical Trading Specialist D.R. Barton's paid-up subscribers are getting the chance to play the market for big, fast gains. One of his recent recommendations on a chip maker shot past 100% gains in barely six days. Click here to learn how to get his picks. Subscribe, and he'll send you his book, The 10-Minute Millionaire, at no extra charge.

Follow Money Morning on TwitterFacebook, and LinkedIn.