Dane Bowler
Value, hedge fund analyst, REITs, long/short equity

Huge Upside And Hedged Tail Risk With Winthrop Realty

Today, 1/28/13, US equity REITs reached an average earnings multiple of around 16.5. In such an overbought market, it is becoming increasingly difficult to find cheap opportunities. Winthrop Realty (NYSE:FUR) remains as a beacon of value - untouched by the market's hysteria. This article will demonstrate that it has strong upside from its sound fundamentals and minimal tail-risk. Before we get to that, let us see how it became so cheap.

Over the past 3 years, FUR has gotten left in the dust

(click to enlarge)

Why is nobody buying it?

Well, certain aspects of Winthrop Realty preclude portions of the investment community from considering it.

  1. Its credit is unrated, so the rules and regulations of many mutual
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