HR - Two High Quality 8-9% Yielding Stocks Worth Considering

2024-05-20 01:39:13 ET

Summary

• Black Stone Minerals beat EBITDA estimates handily and decreased the distribution by 22%, generally as we expected.
• The company's coverage ratio is now at 1.22x and offers a 9% yield.
• Healthcare Realty beat AFFO per share estimates by 1c and announced a joint venture with KKR, selling an 80% stake in assets for $300 million.
• HR at a 7.0% cap rate suggests a $17 stock; assets were just sold in the 6.5-6.75% range.
• We like the improving story at HR and would now add shares below $15sh.

For some background, we first wrote up Black Stone Minerals ( BSM ) in early 2019. We added to it throughout the pandemic and continue to recommend the units to investors....

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