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  • mREIT Preferreds - Great Taste And Less Filling [View article]
    The yields on mREIT preferreds are higher as the business model is different than equity REITs. As managers of financial assets (instead of tangible assets), there is more risk in portfolio construction, management and risk control. At the end of the day, most are more comfortable buying stakes in REITs that own property - there is less volatility in the price of the underlying asset, and therefore, more stability and consistency in returns. I am not overly worried about mREITs stopping preferred dividends as they would have to pull the plug on equity dividends first, and, quite frankly, the current environment is still attractive for mREITs (steep yield curve). Again, it is a matter of comfort and an investors risk profile. More conservative investors might add some of these preferred stocks to their portfolios rather than mREIT equity (as the equity is first loss piece), but keep the scales tilted toward eREIT exposure. Investors with a higher risk tolerance will probably avoid these investments (although some just make silly sense yielding higher than their equities) or selectively add that consistent yield. I personally, own the mREIT sector through REM (I feel better owning the sector rather than just one/two names - although AGNC+NLY+MFA has performed better) and own much more exposure to eREIT equity and preferreds. I hope this answers the question, if not hit me back and we can continue the discussion. Thanks for reading and commenting on a very valid and timely observation. I appreciate it. Mike
    Apr 23, 2012. 03:02 PM | 1 Like Like |Link to Comment
  • mREIT Preferreds - Great Taste And Less Filling [View article]
    Fair point, I should have listed volume. One thing I have found managing and trading preferreds for a while is that sometimes you have to work an order and put your bid out there to see if it gets hit. Thanks for reading and pointing this out as it helps me put information out there that folks need. Appreciate it. Mike
    Apr 23, 2012. 11:27 AM | Likes Like |Link to Comment
  • mREIT Preferreds - Great Taste And Less Filling [View article]
    Brad, and so the debate rages on. You are correct that you hear much less about the management of mREITs (sans Mike Farrell at NLY). There is a case to be made for both sectors (and they should be differentiated even if they are spread managers) and a portfolio can be created that is weighted towards an investors risk profile/tolerance. Thanks for reading and commenting. ps, saw you have an article on CBL out today, interesting player in the mall space (article here: http://seekingalpha.co... for those interested in mall REIT space). Mike
    Apr 23, 2012. 11:25 AM | 1 Like Like |Link to Comment
  • mREIT Preferreds - Great Taste And Less Filling [View article]
    You have to remember that the price is above par because of the accrued interest. Without the accrued, it is below par, giving you a positive yield to call. I have not looked at iStar in a while, I will revisit them and let you know my thoughts. I appreciate you reading and commenting, thanks. Mike
    Apr 23, 2012. 11:19 AM | Likes Like |Link to Comment
  • 5 REITs That Should Be Considered For A Dr. Suess REIT Portfolio [View article]
    Thanks for adding the "boots on the ground insight", the view from the road helps bring the view from 5000 feet into perspective. I kind of wish I lived that close to a market, my wife has to drive 30 miles to spend that much (which, apparently doesn't slow her down). Thanks for reading and commenting, Mike
    Apr 21, 2012. 02:55 PM | Likes Like |Link to Comment
  • YPF Sociedad Anonima - A Short-Term Buy; Reduced Results Longer-Term [View article]
    Bloomberg: Argentina asked Petroleo Brasileiro SA (PETR4) to almost double its share of the country’s oil market and increase business with nationalized YPF SA (YPFD) as the Brazilian company negotiates to revert the cancellation of a license at Neuquen province.

    http://buswk.co/I0LelD
    Apr 20, 2012. 04:34 PM | Likes Like |Link to Comment
  • Banco De Chile: A High-Quality Banking Investment [View article]
    CV, Great information again on an undercovered investment opportunity. Thanks for posting and keep 'em coming. Mike
    Apr 20, 2012. 03:04 PM | 1 Like Like |Link to Comment
  • Tips From TIPS: Implications For Bond Investors [View article]
    Ploutos - right on the money! There are two spectres facing treasury investors right now: 1) the hot money of the flight to quality - this is not long term money, and when it turns prices will get hurt, and 2) artificially low yields which do not compensate investors in a real sense will always burn them. At some point, the inflation building in the system will bee too much to bear and yields will have to revert to a state of normalcy - yields higher than inflation to protect the value of money. I still, however, see value in credit from a risk premium perspective - the spread as percent of total yield. Crossover credits are also attractive (5B) as they widen to shake off the low hanging fruit and yet are still IG on one side but typically priced BB (HY). Good stuff, very relevant. Keep it up. Mike
    Apr 20, 2012. 02:41 PM | Likes Like |Link to Comment
  • 5 REITs That Should Be Considered For A Dr. Suess REIT Portfolio [View article]
    Thanks for reading and commenting, both are appreciated. ROIC does seem to be making the right moves and as they deploy more capital, the returns to investors should be pretty decent. Mike
    Apr 20, 2012. 02:30 PM | Likes Like |Link to Comment
  • YPF Sociedad Anonima - A Short-Term Buy; Reduced Results Longer-Term [View article]
    novela is right! That said, people are attaching decent value to YPF through the beatdown of Repsol ":The company’s credit-default swap, a form of insurance against defaulting on its bonds for five years, was 10 percent higher at 405 basis points at 4:26 p.m. local time. The price has risen 30 percent in the last four days. " Stock down, bonds down - there must be some value here - despite Merrill's assertions and new price target.
    Apr 20, 2012. 12:11 PM | Likes Like |Link to Comment
  • 5 REITs That Should Be Considered For A Dr. Suess REIT Portfolio [View article]
    Spangler, Thanks for reading and, more importantly, sharing your experience and insight with the readers and me. Appreciate it. Mike
    Apr 20, 2012. 11:13 AM | Likes Like |Link to Comment
  • 5 REITs That Should Be Considered For A Dr. Suess REIT Portfolio [View article]
    Honestly, everything I buy is a percent of the portfolio. I have no problem with buying pieces of anything as I am building a portfolio. That said, too many positions can kill you as they become hard to follow/manage.
    Apr 20, 2012. 09:43 AM | 2 Likes Like |Link to Comment
  • Weingarten Realty - A Circle Of Competence Forming A Snowball Of Dividends [View article]
    Brad, Another great article on a strong REIT. If you are "hitting the bong" keep hitting it brother, cause you are calling it right. 13.4x P/FFO is undervalued relative to peers and significantly so relative to other sectors.

    The prefs are attractive as well
    WRI-D 6.75%, currently callable, but without the accrued (clean price) below par.
    WRI-E 6.95%, currently callable, clean price just above par,
    WRI-F 6.50% currently callable, clean px just above par

    The WRI-Ds are compelling, 6.73% current yield and a 10% annualized yield-to-call.
    Apr 19, 2012. 11:41 PM | 1 Like Like |Link to Comment
  • YPF Sociedad Anonima - A Short-Term Buy; Reduced Results Longer-Term [View article]
    davylee, Your opinion regarding YPF and your take on their situation and value is insightful and greatly appreciated. It adds value to the article (as do those who do not agree - everyone wins when they can see some of the other guys cards and their thesis to buy/sell/avoid). I also strongly agree with your comment about Merrill - before the last shoe has dropped (and it hasn't) they halve their value - true BS and CYA if I have ever seen it. Keep me posted on the trade - I have a funny feeling you will be happier than Merrill's clients. Thanks for reading, commenting and adding to the discussion. Mike
    Apr 19, 2012. 11:20 PM | Likes Like |Link to Comment
  • YPF Sociedad Anonima - A Short-Term Buy; Reduced Results Longer-Term [View article]
    The expropriation makes sense from a political standpoint - take from the Spanish, not from the Argentinian business. Enter the law of unintended consequences, cut the div and Repsol and the banks get Eskenazi's stake. When their company goes under, Argentina just suffers more. The irony.
    Apr 19, 2012. 08:56 PM | Likes Like |Link to Comment
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