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REITs have been taking a beating for the past year…

Annaly Capital Management, Inc. (NYSE:NLY), which is considered by many to be a proxy for the REIT sector, has lost about one third of its market value since September 2012.

Investors in Annaly who've endured those losses will need more than two years of its 15.31% dividend yield to break even.

But some analysts, including yours truly, think that there's now value to be had in the REIT market thanks to these dramatic share price declines…

And some of the more alluring options are lesser-known, newer REITs…

Conflict of Interest Be Damned

Orchid Island Capital, Inc. (NYSEMKT:ORC) invests in residential mortgage-backed securities, the kind that are guaranteed by Fannie Mae, Freddie Mac and Ginnie Mae.

Orchid is managed by Bimini Advisors, LLC, an SEC-registered investment advisor and subsidiary of Bimini Capital Management, Inc. (OTCQB:BMNM), which - like Orchid Island - is a publicly traded REIT.

Bimini Capital has an interesting, controversial history. Over the last decade, it's gone through a number of different incarnations, mainly due to mergers, acquisitions, name changes and a one-time delisting from the New York Stock Exchange.

The fact that Bimini is a REIT suggests there could be a conflict of interest, since Bimini Capital and Orchid Island will be looking to invest in some of the same securities.

Nevertheless, as long as Orchid Island's portfolio remains sound, there shouldn't be anything to worry about.

Furthermore, the stock currently presents an opportunity…

You see, Orchid now trades at $11 per share, but in its second-quarter announcement, Orchid Island Capital placed its book value at $14.12 per share.

In other words, shares today are going for a 21% discount to book value.

Combine that with a current dividend yield of 14.86%, and you've got a REIT well worth considering.

Massive Yield on the Cheap

Five Oaks Investment Corp. (NYSE:OAKS) is also a real estate investment trust that invests in residential mortgage-backed securities.

It refers to itself as a "hybrid" REIT, because it invests in both agency and non-agency mortgages, which - in effect - means that some of the portfolio isn't guaranteed by the government.

Managed by Oak Circle Capital Partners LLC - created in March 2012 specifically to run Five Oaks Investment Corp. - the company claims its portfolio is managed with an eye toward both dividends and capital appreciation.

Five Oaks itself just IPO'd this past March at $14.50 per share. Since then it's dropped to as low as $9.76, a 33% decline. Shares have now bounced back above $10.

And in its recent release, Five Oaks reported its book value at $12.93 per share. That means shares are trading today at a 20% discount to book value…

The kicker? Five Oaks has a current dividend yield of 18.06%.

Playing the Value Card

Last up, Javelin Mortgage Investment Corp. (NYSE:JMI) is also a hybrid REIT…

And it's managed by ARMOUR Residential Management, LLC, which also manages ARMOUR Residential REIT (NYSE:ARR), another publicly traded REIT…

Javelin is the oldest of the three REITs profiled here and will celebrate its first anniversary on October 3, 2013.

When it IPO'd, it opened at $19.75 per share, subsequently dropping to less than $10 per share - an almost 50% decline - and now trades just under $13 per share.

In its most recent announcement, Javelin put its book value at $15.12 per share, which means current prices represent a 16% discount.

What's more, the stock sports a massive dividend yield of 22.1%.

Bottom line: Although the environment for REITs is still a tricky one, and there could be some additional downside, it's very likely nearing the bottom.

With the double-digit yields these REITs offer, there's probably more than enough cash flow to offset any additional downside. And if they continue to rise in value, close to parity with their book values, then we'll have some big profits to enjoy, as well.

Safe investing,

Steve Gunn

Source: 3 New REITs Offering High Yields Plus Book Value Bargains