10x Earnings Is Too Much For This Stock

This leveraged REIT faces regulatory and secular headwinds

Highlights:

• 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.