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Sholom Yaffa

 
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  • Real Estate Mutual Funds: Performance, Composition And Notes For The Retail REIT Investor [View article]
    Thank you for the comment.

    Dividends were not included under "Performance," only capital gains. It will be interesting to see if lower dividends lead to higher capital gains. If I decide to learn more about RE mutual fund performance that will be my first analysis. I'll keep you posted. Thank you for the idea.

    I do not have a favorite fund yet. Consider an interesting study published in the Journal of Business in 1993 titled "The Persistence of Risk-Adjusted Mutual Fund Performance." It found that equity fund performance is negatively related to expense ratios and turnover.

    I found this study quoted several times in recent years. I do not believe it has ever been disproved, but it may not be as true today.

    A 1997 study published in The Journal of Finance (Carhart) confirmed the above findings. It also concluded that poor performing funds tend to continue performing poorly.

    In summary, a great place to start would be sifting through expenses, turnover and past performance.
    Jan 6 11:00 AM | Likes Like |Link to Comment
  • Real Estate Mutual Funds: Performance, Composition And Notes For The Retail REIT Investor [View article]
    I just emailed you the filter. Sholom
    Jan 6 03:01 AM | Likes Like |Link to Comment
  • There Is Meaningful Risk But I Like This Self-Dealing REIT With An 8 Plus Dividend Handle [View article]
    Joe - TA shareholders did not win the lawsuit - it was settled out of court. The settlement was negotiated by “special committees” comprised of board members from TA and HPT - as reported by Tim Bonang VP for investor relations at both entities. The "incestuous" self-dealing is blatant - but not necessarily detrimental to either party.

    In addition to Brad's explanation for why HPT controls TA, most national service / retail providers will have at least several landlords. TA's sole landlord is HPT - creating a further dependency. TA is highly dependent on HPT to renovate and expand to compete with entities like Flying J. For example, only with the help of HPT, TA is expanding into the family / consumer traveler business. TA does not exist without HPT. The same can not be said vice versa. A rent reduction was a consequence of this particular lawsuit, but HPT still "makes the rules." This was a minor bump to the power relationship.

    Brad, Thanks for the great article and happy holiday!
    Dec 24 07:01 PM | 2 Likes Like |Link to Comment
  • Ashford Hospitality: With Some 'Skin In The Game' This REIT's Not The Same [View article]
    Thanks Brad for the great article.

    After the 3rd quarter in 2011 when hospitality REITs fell over 38% - more than double the REIT avg, I decided to exit the sector. But I'm looking for opportunities to re-enter, and AHT seems like a superb candidate.
    Dec 3 12:18 PM | Likes Like |Link to Comment
  • The Illusion Of Causality Between Treasuries And REITs [View article]
    Thank you for reading. sholom
    Nov 7 10:50 PM | Likes Like |Link to Comment
  • The Illusion Of Causality Between Treasuries And REITs [View article]
    Thank you for the comment. sholom
    Oct 22 10:01 AM | Likes Like |Link to Comment
  • Hotel REITs: Particularly Sensitive To Economic Concerns [View article]
    Thanks a lot for reading. sholom
    Oct 11 11:50 PM | Likes Like |Link to Comment
  • Hotel REITs: Particularly Sensitive To Economic Concerns [View article]
    Unfortunately I'm not qualified to give a view on HPT as I have not reviewed it in a while.

    HPT typically purchases hotel portfolios instead of single hotels. I think this raises the risk factor for a surprise bad deal. On the flip-side, HPT has lowered its risk factor through several forms of diversification, (1) owning both full-service hotels and select-service hotels, and (2) diverse geographically - owning hotels outside of urban areas.

    The stock has a history of under-performing the hotel REIT sector for months at a time, although less volatile (compare HPT vs. DSHL (Dow Jones REIT Hotel & Lodging), Nov '10 to Jul '11 and Aug '12 to present)

    Thanks for reading, and I'm sorry I couldn't provide greater insight.

    Sholom
    Oct 11 11:44 PM | Likes Like |Link to Comment
  • Hotel REITs: Particularly Sensitive To Economic Concerns [View article]
    TAS - We're on the same page here. I have not investigated the more "well rounded" property management companies, and it's a great point.

    Thanks for the comment, sholom
    Oct 11 07:38 AM | Likes Like |Link to Comment
  • Takeoff With Tanger: A High-Quality REIT With Considerable Runway For Growth [View article]
    True

    Thank you - I'll definitely take you up on the offer one day.
    Sep 19 12:49 PM | Likes Like |Link to Comment
  • Takeoff With Tanger: A High-Quality REIT With Considerable Runway For Growth [View article]
    Brad,

    As you know my article was clearly not about Tanger and the ticker was used simply as an example in a chart that weeds out REITs that are bucking the trend by increasing leverage, which Tanger is doing.

    Your article focused on Tanger dividends while my article was about how the market values REITs given their leverage.

    I am new to REITs and am learning new things from you and other SA writers everyday. Thank you. I welcome constructive criticism, but your comments about my article were taken out of context and used as a springboard to endorse Tanger.

    You quoted one sentence but did not quote the immediate words that followed: "A more detailed inspection of SKT's debt is deserved."
    Sep 19 12:05 AM | Likes Like |Link to Comment
  • QE1 - QE3: Lower Rates Boost REIT Valuations And Demand [View article]
    The symbols I listed may or may not be "expensive." I simply was making a point that most REITs are trading above a 15.9 FFO/P, which as a whole makes REITs expensive compared to the S&P 500. I chose a random selection of REITs to demonstrate my point. There are definitely both more expensive and cheaper REITs out there. Also, I argued in my article - an expensive REIT can still be a good deal.
    Thanks for reading
    Sep 16 01:53 PM | Likes Like |Link to Comment
  • QE1 - QE3: Lower Rates Boost REIT Valuations And Demand [View article]
    Top market cap REITs (MarketReit, August 2012 Issue):

    1 Simon Property Group Inc. 48,644.0
    2 American Tower Corp 28,680.4
    3 Public Storage 25,347.5
    4 HCP Inc. 19,804.8
    5 Ventas Inc. 19,786.9

    GGP's current market cap is 18.8 - check out Yahoo Finance - http://yhoo.it/PkhYY9

    Equity Residential is only the 6th largest cap REIT at 19,032.5.

    Thanks for reading
    Sep 14 11:53 PM | Likes Like |Link to Comment
  • Market Rewarding Lower-Leveraged REITs [View article]
    Debt has always been a fundamental part of the real estate market. Leverage is therefore not going anywhere, but several studies have concluded that leverage is associated with lower returns.

    For example, Green Street Advisers, a well respected buy-side research firm that focuses on REITs, came out with a study in 2009 arguing for REITs should lower, or better yet - eliminate, their debt. http://bit.ly/O6ErVV It's a convincing argument.

    Thanks for reading.
    Sep 9 10:41 PM | Likes Like |Link to Comment
  • The Conundrum Of Triple Net Lease Valuation [View article]
    Realty Income seems like a stellar buy for those seeking the "icing" b/c of the many reasons Brad provided - diversification, safe dividends, track record, superior management, etc.

    However, shouldn't O's "edge" in growth be for its time proven internal growth abilities and not its cost of capital? The article's "bigger margins" point is a short term advantage with long term consequences. Relying on superior margins as O's "edge" means that asset values will have to be allocated among a larger number of common shares. When such dilution occurs investors will expect higher returns to compensate for higher risk (which I guess then goes back to the question of whether you're looking for the cake or the icing.) Regardless, shouldn't the focus on why Realty Income has such great growth ability be on its internal growth machine which can be accomplished without having to raise more equity or to take on additional debt?

    Thank you Brad for your tremendously informative articles.
    Aug 30 03:04 PM | 3 Likes Like |Link to Comment
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