Picking An All-Star REIT Team To Defend Against Interest Rate Risk [View article]
Brad,
The point that Larry and I are making is that their credit quality of tenants is very strong in reality despite its weakness on paper. As you know, the financial crisis was partially caused by AAA credit rating investments failing.
the moral of the story: Reality is far more important than on paper appearance.
Optimizing Triple Net Lease REIT Investment: Time To Sell Realty Income [View article]
Inquisitivemind,
You are correct that the oversupply could be eaten up by REITs, but the REITs are not tenants so there would still be oversupply at the tenant level. Too high of a property to tenant ratio increases vacancies. With more options for each tenant, they would potentially have the power to negotiate lower rates with their landlords (the REITs).
I hope this helps clarify, and thanks for commenting
Picking An All-Star REIT Team To Defend Against Interest Rate Risk [View article]
Brad,
Nice article and I think the counterpoints you make about O vs GOOD are valid.
It really just comes down to each individual investor's preferences and insight as to how the market will turn out. While I personally think that GOOD is less risky than O due to O's principle risk of an overvalued stock price, one could just as easily make the argument that GOOD's leverage enhances downside.
Each has benefits and weaknesses which have been laid out fairly clearly by the two of us. I am quite pleased with the continued discourse on the subject.
Optimizing Triple Net Lease REIT Investment Part 2: Dividends With Gladstone Commercial [View article]
I would like to correct my comment about Fast Graphs. While it remains my opinion, I do not have enough information to state it as fact. Such a claim would require exhaustive data which I do not have.
My Top 10 Fairly Valued Fast-Growing Stocks [View article]
I will admit to fault in the way I phrased my comment. I stated an opinion, but it was not clearly phrased as such. I did not have enough information to make such a claim and I take back my comment.
Optimizing Triple Net Lease REIT Investment Part 2: Dividends With Gladstone Commercial [View article]
The reason these tenants are not credit rated is because it is very expensive to get that done. Many of these tenants are reliable, but too small for it to be worth getting their credit rated by an official agency. Unrated is VERY different than unworthy.
Optimizing Triple Net Lease REIT Investment Part 2: Dividends With Gladstone Commercial [View article]
rnsmth,
To each their own. I would rather have a stagnant huge dividend than a slowly growing medium dividend, but I suppose it depends on your investment goals and trading frequency.
Optimizing Triple Net Lease REIT Investment: Time To Sell Realty Income [View article]
For those of you inquiring about the delays, the 2nd part is now officially live to all SA readers. I apologize for the delay, it just got snagged in the process.
Optimizing Triple Net Lease REIT Investment Part 2: Dividends With Gladstone Commercial [View article]
Yes, they do have a substantial amount of debt. And yes it will limit future growth. That is why I had an entire section in the article dedicated to why this is not a growth company. It is simply a strong dividend play with secure cashflows.
Picking An All-Star REIT Team To Defend Against Interest Rate Risk [View article]
The point that Larry and I are making is that their credit quality of tenants is very strong in reality despite its weakness on paper. As you know, the financial crisis was partially caused by AAA credit rating investments failing.
the moral of the story: Reality is far more important than on paper appearance.
Optimizing Triple Net Lease REIT Investment: Time To Sell Realty Income [View article]
You are correct that the oversupply could be eaten up by REITs, but the REITs are not tenants so there would still be oversupply at the tenant level. Too high of a property to tenant ratio increases vacancies. With more options for each tenant, they would potentially have the power to negotiate lower rates with their landlords (the REITs).
I hope this helps clarify, and thanks for commenting
Picking An All-Star REIT Team To Defend Against Interest Rate Risk [View article]
Nice article and I think the counterpoints you make about O vs GOOD are valid.
It really just comes down to each individual investor's preferences and insight as to how the market will turn out. While I personally think that GOOD is less risky than O due to O's principle risk of an overvalued stock price, one could just as easily make the argument that GOOD's leverage enhances downside.
Each has benefits and weaknesses which have been laid out fairly clearly by the two of us. I am quite pleased with the continued discourse on the subject.
Optimizing Triple Net Lease REIT Investment Part 2: Dividends With Gladstone Commercial [View article]
My Top 10 Fairly Valued Fast-Growing Stocks [View article]
Optimizing Triple Net Lease REIT Investment Part 2: Dividends With Gladstone Commercial [View article]
That is an excellent point. It makes the actual returns from the dividend even larger on a current basis.
Optimizing Triple Net Lease REIT Investment Part 2: Dividends With Gladstone Commercial [View article]
Optimizing Triple Net Lease REIT Investment Part 2: Dividends With Gladstone Commercial [View article]
SNL financial is a paid source of information and its existence hinges on the extreme accuracy of its data.
Optimizing Triple Net Lease REIT Investment Part 2: Dividends With Gladstone Commercial [View article]
Optimizing Triple Net Lease REIT Investment Part 2: Dividends With Gladstone Commercial [View article]
That seems like a fair and balanced perspective, thanks for sharing.
Optimizing Triple Net Lease REIT Investment Part 2: Dividends With Gladstone Commercial [View article]
To each their own. I would rather have a stagnant huge dividend than a slowly growing medium dividend, but I suppose it depends on your investment goals and trading frequency.
best of luck to you,
Dane
Optimizing Triple Net Lease REIT Investment: Time To Sell Realty Income [View article]
You make a valid point about the raise in dividend consequent to the ARCt purchase. I had missed that. Thank you for the correction.
Optimizing Triple Net Lease REIT Investment Part 2: Dividends With Gladstone Commercial [View article]
Good question,
They can afford the dividend, but just barely. Their FFO payout ratio has consistently been very near 100%.
Optimizing Triple Net Lease REIT Investment: Time To Sell Realty Income [View article]
Optimizing Triple Net Lease REIT Investment Part 2: Dividends With Gladstone Commercial [View article]