H.J. Huneycutt

DCT Industrial Trust: A Best Buy Among REITs

I'd consider technical analysis to be the equivalent of astrology. Besides, REITs pay out substantial dividends so how would TA compensate for that? If "the chart" goes down for years, the returns could actually be quite good.

On Jul 22 09:52 AM YoYoMama wrote:

> DCT is also popping in a range between $2.50 and $4.75 with no discernable
> chart trend, except downard for now.
>
> GTY is overextended and this would not be the right time to enter.
>
>
> Really, none of the choices presented in this article scream "buy"
> from a technical standpoint.

Pennsylvania REIT: A Bargain in the Retail Sphere

Trane,

There is no "technical analysis" in the article --- abstruse or simplistic. PREIT's properties probably will not "perk up" at any point in the near future. They don't really need to for the stock to be worthwhile.

P.S. I did mention that they own malls in small urban areas. There's competition everywhere --- the bigger advantage to small urban areas is that there likelihood of significant property value depreciation is much slimer.

Brandywine Realty: A REIT Bargain Even with Impending Carnage

toomuchgas,

It's not a bad idea for conservative investors. Especially if you are getting into one like BDN that should probably be relatively safe. Not sure if the REITs are destined for a pullback or not, but the bonds would probably be much safer.

Brandywine Realty: A REIT Bargain Even with Impending Carnage

Compfee,

My mistake. I was looking at the company's figures from FY 2008 on the website:

www.snl.com/IRWebLinkX...

When I wrote that, I realized they had probably cut it for FY 2009, but didn't really check. Admittedly, the dividend is somewhat irrelevant to me (at least in the short-term). To be honest, I'd rather they pay out no dividend at all and wipe out as much debt as possible while they can do so at a discount.

Brandywine Realty Trust: High Risk, High Reward

I'm looking into BDN right now. Their financials make them look appealing to me, but I'd have to disagree on your macro outlook as far as 'suburban office property' being better than 'downtown office property'. Back in 1948, everyone going on past history would've said the exact reverse thing and they wouldn't have made out nearly as well as those who invested in suburban properties.

The environment is once again changing. Commodity prices are going upwards and pushing people back inwards. Not all the suburbs are going to die out, but some of the outer suburbs will struggle mightily and inner city property is going to be the way to go again, I believe. Still, I'd look at the fundamentals behind each market before making any specific judgements. For instance, some cities do have reasonable public transit out into many of their more inner suburbs and those might very well prosper significantly.

In Northern Virginia, for instance, the DC Metro is being extended out to Tyson's Corner and it could remain relatively stable. Meanwhile, I expect places in the outer suburbs to suffer as gas prices continue to go upwards and policymakers are forced to try to deal with traffic nightmares and environment degradation resulting from the massive amounts of sprawl.