John Buckingham is an industry-leading value investor, money manager and editor of The Prudent Speculator. Here, he looks at two real estate investment trusts recommended for long-term oriented investors.

Physicians Realty (DOC) is a small-cap health care REIT that acquires, owns and manages health care properties that are leased to physicians, hospitals and healthcare delivery systems, and other health care providers.

Its properties are typically on a campus with a hospital or strategically located and affiliated with a hospital or physician organization. Shares have recovered modestly from the February low, but we think that the company’s latest earnings report (Q3 FFO: $0.28 vs. $0.27 est.) gives reason to be enthusiastic about the near-6% yielder.

In addition to strong fundamentals, we appreciate the unique exposure DOC offers in a diversified portfolio and like the expertise and experience of the management team, the favorable demographic trends and focus on leveraging its physician and hospital relationships nationwide. Of its 13.6 million square feet of leasable space, almost 96% is filled with a weighted-average lease term of 8.2 years.

Real estate investment trust Regency Centers (REG) is a national owner, operator and developer of neighborhood and community shopping centers. The company’s portfolio is primarily anchored by productive grocers and is located in affluent and attractive more-populated metro areas. REG had a difficult 2017 and made up some ground in the first part of 2018, but we think more upside remains.

The company’s Q3 results (FFO was $0.96 vs. $0.95 est.) were solid and CEO Hap Stein said, “The best-in-class retailers continue to make sizable investments in their bricks-and-mortar footprints. Based upon our many conversations that we’ve had with key retailers it is clear that physical stores remain a very a critical component of a multi-channel strategy.”

We believe that brick-and-mortar retail is very much alive, and we like company projections for 2018 full-year FFO of between $3.76 and $3.79 per share. The yield is 3.5%.

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