5 REIT Stocks With Recent Insider Buying

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 |  Includes: APTS, FCH, FUR, IRET, OLP
by: Rougemont

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 new buying opportunities exist. 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 they have an upside potential.

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, which will add to future potential gains. Some of these companies pay solid dividends, which are an added bonus. I have provided links for each stock to verify the insider buying filed with the SEC below. Here are the stocks:
Winthrop Realty Trust (NYSE:FUR) is trading around $12.03. Winthrop is based in Massachusetts. It invests primarily in office and retail properties. These shares have traded in a range between $10.10 to $14.59 in the last 52 weeks. The 50 day moving average is $11.95 and the 200 day moving average is $12.24. Earnings estimates are $1.24 for 2011. The book value is stated at $10.94. You can see the repeated insider buying here.
What Winthrop insiders and other investors might be seeing: Financial results have been improving for this company. Winthrop recently announced a capital raise. This offering was priced at $11.25, and a few insiders bought shares in this offering. FUR pays a solid dividend of 65 cents per share, which is equivalent to a 5.4% yield.
Investors Real Estate Trust (NYSE:IRET) shares are trading at $9.34. IRET is a real estate investment trust, based in North Dakota. These shares have traded in a range of $7.97 to $9.61 in the last 52 weeks. The 50 day moving average is $9.09 and the 200 day moving average is $8.52. Earnings estimates are 65 cents for 2011. You can see the repeated insider buying here. IRET pays a solid dividend of 69 cents per share, equivalent to a 7.4% yield.
What IRET insiders and other investors might be seeing: This stock is in a clear uptrend and the dividend yield is strong. These shares look ready to hit new highs soon, although I would only buy on pullbacks. The book value is currently at $4.92.
Preferred Apartment Communities (NYSE:APTS) is trading around $10. Preferred is based in Maryland and invests primarily in residential properties. These shares have traded in a range between $9.19 to $10.05 since trading began. There is limited information on this company since it just recently went public. Earnings estimates, book value and other information was not available for this company on Yahoo Finance and other financial websites. You can see the insider buying here.
What Preferred insiders and other investors might be seeing: APTS just went public and priced shares at $10. I would hold off on buying these shares since there is such a limited trading history.
One Liberty Properties (NYSE:OLP) is trading around $14.87. 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 $15.03 and the 200 day moving average is $15.21. 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 with $9.70 million for the three months ended December 31, 2009. OLP pays a solid dividend of $1.32 per share, equivalent to a 8.7% yield. The dividend alone is strong incentive to buy OLP shares.
Felcor Lodging Trust (NYSE:FCH), is trading around $6.24. Felcor, based in Texas, 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 $6.99 and the 200 day moving average is $6.06. FCH does not currently pay a dividend. Earnings estimates are 26 cents for 2011. The book value is about 93 cents. You can see the repeated insider buying 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. Still, the other companies here look like a better investment based on valuation (book value), earnings and dividends.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
Disclaimer: The data is sourced from Yahoo Finance and Stockcharts.com. 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.