Seeking Alpha

More on the Realty Income (O) purchase of American Realty (ARCT): The purchase reflects Realty...

More on the Realty Income (O) purchase of American Realty (ARCT): The purchase reflects Realty Income's desire to improve tenant quality, says Joshua Barber, but at the cost of getting into new property types (non-retail). He has his doubts about the transaction improving on an "historically strong operating profile."
Comments (4)
  • Shiner84
    , contributor
    Comments (2) | Send Message
     
    1) Tenants like Fed Ex, Walgreen’s, CVS, the GSA, Dollar General, Express Scripts, PNC Bank, and Whirlpool may not be O's typical crowd but they sure seem like the kind of tenants any REIT would like to have.
    2) Don't you think the guys running O get some credit for knowing what they are doing? If I trust the executives at any major company today, I trust O's management team to make good decisions.
    6 Sep 2012, 04:58 PM Reply Like
  • Old Trader
    , contributor
    Comments (5726) | Send Message
     
    This appears to be a continuation/extension of the shift in their philosophy first appearing about a year ago, when they moved a bit into office/industrial RE with AAA blue chip tennants.

     

    If one notes the increasing slowing of economic growth, is "sub-prime" the market that you'd want to get MORE involved with?
    6 Sep 2012, 08:38 PM Reply Like
  • Jerbear
    , contributor
    Comments (829) | Send Message
     
    Big O has been criticized for their lack of quality tenants. Seems they listened and realized they had to do something. It is a good strategic move on their part. Very quick way to upgrade the portfolio.
    6 Sep 2012, 09:36 PM Reply Like
  • jeffinvests
    , contributor
    Comments (4) | Send Message
     
    At a very good price. ARCT shareholders get screwed on this one.
    11 Sep 2012, 03:39 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs