Most investors look at this stock through the lens of accounting profit, see a P/E ratio over 60, and move on. However, this is a mistake stemming from a misunderstanding of how real estate funds work. Real estate funds aren’t measured by earnings, but by what’s called FFO—funds from operations before depreciation. And based on this correct metric, the stock is trading at around 11 times FFO, not 60. The difference between how the stock looks in a screener and how it looks through the lens of a real estate fund is the first thing that should catch an investor’s attention.

The second layer of the story explains why the company is in the spotlight right now. It is a real estate fund focused on healthcare properties that pays a dividend of around 6% per year in monthly installments, which is unusually convenient for income investors. After rebounding from last year’s lows, the stock has returned to the upper end of its annual range, and the question is whether it still has room to grow.…