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Real Estate Investment Trust (REIT) stocks have been trending up for many months now, as the economy has stabilized. However, most REIT stocks have come off their highs recently, so now's a good time to take another look. What makes the names below very interesting is that these companies have reported substantial insider buying. The fact that insiders are buying these names could be a sign that there is still significant upside potential in these names.

The U.S. economy appears to be generally improving and even though there will be speed bumps along the way, it seems highly likely that some of these stocks have significant upside potential. Many of these REIT companies acquired cheap real estate during this downturn and continue to do so. This will add to future gains. Some of these companies pay generous dividends which are an added bonus. I have provided links for each stock which verifies the insider buying filed with the SEC below. Here are the stocks:
Monmouth Real Estate Investment (NYSE:MNR), is trading around $8.14. Monmouth is based in New Jersey and invests primarily in industrial properties. These shares have traded in a range between $7 to $8.87 in the last 52 weeks. The 50 day moving average is $8.27 and the 200 day moving average is $7.73. The book value is stated at $5.22. You can see the repeated insider buying here.
What Monmouth insiders and other investors might be seeing: Financial results have been improving for this company. Monmouth reported net income of $3,766,000 or $0.11 per common share for the three months ended December 31, 2010, as compared to $1,844,000 or $0.07 per common share for the three months ended December 31, 2009. MNR pays a solid dividend of 60 cents per share which is equivalent to a 7.4% yield.
RAIT Financial Trust (NYSE:RAS) shares are trading at $2.48. RAIT is a real estate investment trust, based in Pennsylvania. These shares have traded in a range between $1.30 to $4.75 in the last 52 weeks. The 50 day moving average is $3 and the 200 day moving average is $2.12. You can see the repeated insider buying here.
What RAS insiders and other investors might be seeing: Financial results and the balance sheet have been improving. The stock trades at a significant discount to the book value which is currently stated at $8.67. The stock dropped hard last week from about $3, when RAS announced an offering of $100 million in convertible notes. This has created a buying opportunity to pick up cheap shares.
Piedmont Office Realty Trust (NYSE:PDM), is trading around $19.07. Piedmont is based in Georgia and invests primarily in office and industrial properties. These shares have traded in a range between $15.46 to $21 in the last 52 weeks. The 50 day moving average is $19.29 and the 200 day moving average is $18.40. The book value is stated at $16.03. You can see the insider buying here.
What Piedmont insiders and other investors might be seeing: Piedmont is seeking to acquire additional properties and has a strong balance sheet. This should allow them to buy more real estate at attractive valuations. PDM pays a solid dividend of $1.26 per share which is equivalent to a 6.6% yield.
Pebblebrook Hotel Trust (NYSE:PEB), is trading around $21.75. Pebblebrook is based in Maryland and invests primarily in hotel properties. These shares have traded in a range between $16.85 to $22.47 in the last 52 weeks. The 50 day moving average is $21.32 and the 200 day moving average is $19.46. The book value is stated at $17.25. You can see the insider buying here.
What Pebblebrook insiders and other investors might be seeing: Room rates have been rising for hotels along with occupancy rates. The CEO, Jon Bortz recently said "We expect fundamentals to further improve throughout 2011 as business travel recovers more completely and the industry regains the ability to increase average room rates....” PEB pays a dividend of 48 cents per share which is equivalent to a 2.2% yield.
One Liberty Properties, is trading around $14.82. One Liberty is based in New York and invests primarily in commercial properties. These shares have traded in a range between $13.74 to $18.80 in the last 52 weeks. The 50 day moving average is $15.35 and the 200 day moving average is $15.18. The book value is stated at $16.13. You can see the repeated insider buying here.
What One Liberty insiders and other investors might be seeing: Financial results have been improving for this company as total revenues for the three months ended December 31, 2010 increased 9.9% to $10.66 million compared to $9.70 million for the three months ended December 31, 2009. OLP pays a solid dividend of $1.32 per share which is equivalent to a 8.7% yield.
Inland Real Estate (NYSE:IRC), is trading around $9.31. Inland is based in Illinois and invests primarily in shopping centers and retail properties. These shares have traded in a range between $7.17 to $10.29 in the last 52 weeks. The 50 day moving average is $9.22 and the 200 day moving average is $8.34. The book value is stated at $4.53. You can see the repeated insider buying here.
What Inland insiders and other investors might be seeing: Inland recently reported 2010 results which saw a rise in revenues to $44.2 million from $40.8 million. Also, leased occupancy for the REIT's total portfolio rose to 93.3 percent at the end of the quarter. IRC pays a solid dividend of 57 cents per share which is equivalent to a 6.1% yield.
Felcor Lodging Trust (NYSE:FCH), is trading around $6.58. Felcor is based in Texas and invests primarily in hotel properties. These shares have traded in a range between $3.91 to $8.99 in the last 52 weeks. The 50 day moving average is $7.35 and the 200 day moving average is $6.02. You can see the repeated insider buying (although it's not as recent as the other companies discussed) here.
What Felcor insiders and other investors might be seeing: Financial results have been improving for this company. Room rates have been rising for hotels along with occupancy rates. Although, the other companies here look like a better investment based on valuation.
The data is sourced from Yahoo Finance. The information and data is believed to be accurate, but no guarantees or representations are made. Rougemont is not a registered investment advisor and does not provide specific investment advice. The information contained herein is for informational purposes.



Disclosure: I am long RAS.

Source: 7 Cheap REIT Stocks With Repeated Insider Buying