10x Earnings Is Too Much For This Stock
This leveraged REIT faces regulatory and secular headwinds
A high dividend yield and a low earnings multiple suggest value in this REIT.
The business appears defensive alongside a post-pandemic recovery in occupancy.
But the industry is under stress near-term, while secular and regulatory pressures raise long-term issues.
After a 25% rally since late May, there’s an attractive opportunity to bet on mean reversion. A short here should have 20-30% upside.