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LTC's Sweet Monthly Dividend Is Icing On The Cake
- The continued "graying of America" should result in increased demand for long-term care services and related properties.
- LTC has a very healthy balance sheet with less than 1% of secured (mortgage) debt.
- LTC's track record for dividend growth is the icing on the cake, and because the company pays monthly, I can lick the icing on the spoon every month!
Flying Under The Radar: A Tactical Small-Cap REIT Approach
- The lack of Wall Street coverage and investor interest can also result in shares remaining undervalued - especially in down markets - for extended periods of time.
- Due to the decreased institutional support, there's a better chance that the REITs will result in an underestimation of operational health and growth prospects.
- Because of their contractual lease driven revenue attributes, REITs provide more predictability in terms of forward-looking fundamentals.
Trick Or Treat, You Can't Beat This REIT
- Why is it that REITs are becoming spooked with the mere whisper of rising rates?
- While most all Triple Net REITs have seen price volatility, the most essential element to consider is fundamentals.
- The dividend spigot is flowing and it’s time for Realty Income to pour some water on Mr. Market.
Why I Have Become An Extremely Conservative REIT Investor
- To fully comprehend the potential for loss, I had to gain the necessary experience that enabled me to become a better risk manager – and ultimately a better risk taker.
- Sometimes it took a few hard turns to reach the finish line, but making mistakes it an absolutely essential element in the investing process.
- “You’re unlikely to succeed for long if you haven’t dealt explicitly with risk”. Howard Marks.
- By distinguishing myself as an investor (and not a speculator) I have gained a critical advantage in which I know how to both control risk and generate returns.
Bob Evans May Soon Be 'Delivering Farm Fresh' REIT Revenue
- Last week, The Wall Street Journal reported that several REITs had expressed an interest in buying the real estate owned by Bob Evans.
- "The company's stock price does not reflect the significant embedded value of the owned real estate." - Sandell Asset Management.
- Sandell's arguments are solid, and while owning real estate is an important ingredient for wealth creation, the most efficient structure for Bob Evans is to explore a strategic sale/leaseback transaction.
The Shorts Are Winding Down But I Own Digital Realty For The Long Haul
- REITs have a much better methodology for assessing the predictability of earnings.
- Just like any security that I’m researching, I pay close attention to the reliability of the company’s profit margins.
- I could just walk away from Digital Realty now and wait for the next big hedge fund hiccup.
- Forget the noise and take advantage of stocks on sale.
Let's Make Some REIT Hay While The Sun Is Shining
- “Always make hay while the sun is shining.” Farmer Ed.
- Buying stocks when they are cheap is the best way to grow money, and stocks of good companies on sale reap the highest returns.
- By utilizing these hard-and-fast rules, you can be just like Farmer Ed and find yourself napping each day right after lunch.
Remember, It Was The Great Recession, Charlie Brown
- My biggest memory of pumpkins was in the movie 'It's the Great Pumpkin, Charlie Brown'.
- Linus truly believed that the Great Pumpkin would appear again next year, and I do too!
- “It’s the investor’s job to intelligently beat risk for profit. Doing it well is what separates the best from the rest.” - Howard Marks.
Omega Healthcare Is A Blue Chip Model Of Predictability
- Due to a very weak financial profile with a majority of Omega’s operators, the company was forced to cut its dividend and preserve equity to meet its near-term debt obligations.
- I believe that this article lays out some important attributes that make Omega Healthcare Investors a Blue-Chip REIT.
- Some may argue that Omega needs another ten years of dividend increases before it can be labeled a “blue chip”.
- As I sum up my definition of “blue chip” it simply means that I “sleep well at night”.
I Want To Buy Boardwalk For The Price Of Connecticut Avenue
- Although I’m by no means an expert at “market timing” (nor do I intend to be) the technical analysts would acknowledge that Federal Realty is not a BUY today.
- A fundamental analysis of Federal Realty would provide a completely different picture – one in which a stock is evaluated based on past performance.
- Boardwalk is the best property to own in Monopoly, but always negotiate.
What I See With This High-Paying REIT That Mr. Market Doesn't
- Chambers Street has not moved and shares are down over 19% from the original listing price of $10.00.
- Mr. Market has his reasons for the sleepy share price appreciation but owning shares in a REIT when I’m losing capital doesn't necessarily mean I’m sleeping well at night.
- I see the overhang in the shares primarily as a “tug of war” of sorts.
- I see something different that Mr. Market doesn’t see and that is that I view Chambers Street as highly attractive REIT that has been overlooked, at least for now.
The 'Up And Coming' Blue-Chip REITs
- My wife gets mad at me since I control my car like a race car driver would: one foot on the gas and one foot on the brake.
- That’s kind of like Mr. Market has been with REITs – pumping the gas enough to get moving and then tapping the brakes waiting for the deer to jump out.
- Rule #1: Never recommend a blue-chip stock for the sake of owning a blue chip.
How Critical Is This Hospital REIT To My Investment Portfolio?
- I adhere to a disciplined approach since I know that it takes only a few large losses to destroy my portfolio's overall performance.
- Assume MPW was trading at the peer P/FFO multiple of 15x, then shares would be worth $17 to $18. Is there justification for the discount?
- While MPW cut its dividend in 2009, most of my other Healthcare REITs managed to maintain and grow their dividend.
- I believe there’s greater opportunity with the REITs that are steadily increasing their dividend payouts.
Get Paid While You Sleep: REITs That Pay Monthly
- The wonder of compounding transforms your investable money into a highly powerful income-generating tool.
- I'm at the stage in my life where I want my cake and eat it too.
- As some point, I will turn off the compounding button and open up the spigot of dividend income.
How Can You Invest In An Irreplaceable Island That Pays A 4.44% Dividend Yield?
- Like most non-traded REITs, equity is generated in a blind pool format, so investors really don't know what they're buying.
- NYRT and ARC New York REIT have the same external manager, and they also have many of the same officers and board members.
- Knowing that ARC New York REIT is well on its way to becoming a replica of NYRT, is it possible that the NYRT mergers with the twin?
- "It's hard to go wrong owning real estate on this island" - Mike Happel of NYRT.
Now Is The Time To Maintain A Tactical Approach To Buying Blue Chip REITs
- The secret to winning at Monopoly as in Value Investing is the same: Buy when things are cheap and focus on good companies (or properties) that reap the highest returns.
- I’m suggesting that you should take a hard look at your portfolio and BE PREPARED to take advantage of opportunities when and if they’re presented.
- So instead of worrying about how REITs will be affected (by rising rates), focus on fundamentals.
- “You are neither right nor wrong because the crowd disagrees with you. You are right because the data and reasoning are right.” Benjamin Graham.
Mr. Market Provides Some Early Fall Color For REIT Investors
- Yesterday Mr. Market decided that the REIT market was getting a little overheated so he decided to cast a chill on REIT shares.
- It’s clear that interest rates have settled since a sharp upward spike in mid-2013 so rate risk may not be foremost in investors' minds.
- "What you want is to invest in a company that's going to continue to increase its earnings by having higher occupancy levels and higher rent growth" - Brad Case.
'High Cotton' For Highwoods Properties
- One of the key differentiators separating the “wheat from the chaff” with Highwoods has been the very consistent revenue stream.
- Highwoods has demonstrated that prudent capital management and disciplined risk control deliver durable earnings results.
- I’m recommending Highwoods (at the current price of $42.55) as I believe the margin of safety (as defined by dividend coverage) is exceptionally strong.
Will This Mortgage REIT Become A Dividend Raising Machine?
- Given the continued economic recovery that we’re seeing today, I have been seriously considering another investment in the mREIT sector.
- Economic conditions are sustaining a favorable commercial real estate market as liquidity and fundamentals in the commercial real estate sector are generally in balance.
- I’m initiating a BUY rating on Blackstone Mortgage and I plan to begin a position within the next 30 days.
Why I Consider Extra Space The 'Mac-Daddy' Of Self-Storage
- I liken Extra Space to the growth engine of McDonald's back when the chain had just a few stores in the 1950's.
- The favorable industry fundamentals make Extra Space a more attractive investment thesis.
- I like a company that owns real estate and turns its most valuable asset (data) into dividends. That's also why I own the Mac-Daddy of Self Storage, because everyone needs EXTRA SPACE.
You're Not A Sucker, But We All Should Be Better Second-Level Thinkers
- My intent was to provide investors with a harbinger – or warning – that chasing yield – for the sake of yield – can be dangerous.
- For the record, consider yourself warned, not insulted, and if anyone was offended by my use of the word “sucker,” I was not aiming the message at YOU.
- It’s just a matter of keeping risk under control and making sure that the returns you realistically expect are worth the risk you are taking.
Sucker Yield REITs: Does Annaly Capital Management Qualify?
- Annaly does well in a falling rate environment, but not so well in a rising rate environment.
- The consistency of funds available for distribution (and therefore dividends) will be adversely affected by the expected move in rates.
- It's important to recognize that because Annaly doesn’t enjoy a highly predictable dividend history, the successful investor must advocate time and resources on understanding the more complex hedging strategies.
- There is absolutely no margin of safety that I would accept to invest in a business model that has no relevant method of producing consistent earnings over time.
It's Payday: These REITs Yield At Least 5% And Grow Dividends By At Least 5%
- It’s important to recognize that rising interest rates will further bolster the real estate recovery while strengthening underlying operating earnings.
- I tell people, almost daily, the most important metric for me, when it comes to REIT investing, is dividend safety.
- When you examine the two ways of getting paid to invest – capital gains and dividends – it’s natural that dividends have special appeal.
Why Will This New Net Lease REIT Be A Game Changer?
- Most of the Triple Net REITs are focused on credit underwriting and few of them are in the trenches looking at unit-level economics.
- While the Triple Net industry has enormous size, STORE focuses on the highly fragmented sub-sector with few participants addressing the long-term capital needs of middle-market and larger unrated companies.
- STORE is more of bank than a REIT. The company underwrites its investments based more on contract risk than credit risk.
Has Campus Crest Hit Bottom?
- Campus Crest appears to be floating at the bottom of the ocean floor.
- The catalysts offer good upside although the dividend payout ratio is tight.
- I’m going to start to nibble on a few shares later in the week.
ClubCorp Is A Consolidator That Could Add Distance To Your Game
- "Considering that my properties come with the success ratio now referred to as “the Trump Factor,” I would say that the value is significant.” Donald Trump.
- The purpose of this article is to provide you with an alternative to invest like Trump.
- I believe the inexpensive ClubCorp shares could be a nice "sand wedge" for your investment portfolio.
The Pathway To Creating Wealth With REIT Diversification
- One key part of the diversification benefits of owning REITs has to do with the longer-term market cycles.
- Why go home early when you can take advantage of the diversification benefits and contrasting market cycles?
- Real estate has an average 18-year cycle so the bull markets for the real estate sector is much longer than the stock market business cycle.
If STAG Industrial Was A Car It Would Be A Mustang
- Triple Net REITs hold their value extremely well and because of the long-term nature of the leases, there is considerably less volatility in cash flows.
- Although the Triple Net REITs do pay the highest dividends in the equity REIT sector, I own shares in these REITs because of the dependability of the dividend income.
- STAG Industrial is the All-American muscle car in my REIT portfolio.
- I’m very confident with the management team and the disciplined risk management practices that make-up the “muscle-like” investment thesis.
I'm Waiting Patiently For This Blue Chip REIT To Go On Sale
- It’s pain to see that Mr. Market isn’t cooperating with me – since January 1st (2014) NNN has been the best performing Triple Net REIT.
- NNN is better positioned to successfully execute its strategy than many other Triple Net peers in a rising interest rate environment.
- NNN is executing at ALL CYLINDERS and there are few REITs that I covet and this is one of them.
- Finding attractive dividend-paying stocks is only one piece of the puzzle. Buying them is another piece.
Sucker Yield REITs: Does Whitestone Qualify?
- “A ridiculous yield combined with an inherently vulnerable business model that sends ominous signals of doom.” Josh Peters, author of The Ultimate Dividend Playbook.
- As a true measure of protection, it’s critical that investors don’t look at the yield until analyzing the safety of the dividend.
- This article is my first in a series called “Sucker Yield REITs” and I intend to provide a meaningful and quantitative analysis on REITs that appear to be “sucker yields”.
- I’m not tempted by the “sucker yield”; just show me a REIT with a dividend payment that lasts like an everlasting gobstopper!
This REIT CEO Is The 'Real Deal' With Durable Dividend Appeal
- Within my short-list of best CEOs there is one that stands out above the rest.
- What’s important to recognize is that Debra Cafaro was not a typical CEO when she was hired in 1999, she was somewhat of an underdog.
- I’m not pulling any punches, Debra Cafaro is the “real deal” and she can trade jabs better than anyone else in REIT-dom.
I'm Glad I Have This West Coast Gem In My REIT Portfolio
- I remember building a shopping center in a rural market around twenty years ago and I had steel in the air before signing the first lease.
- So now you have it, I’m extraordinarily critical when it comes to Shopping Center REITs.
- One of my biggest lessons as a real estate developer was to only invest in high-quality markets; that’s where property fundamentals are the strongest.
- With an expanded institutional base, ROIC shares are becoming harder to pick up “on the cheap” and the high-quality asset mix is highly correlated to the current valuation premium.