Seeking Alpha

kaptain_lou

kaptain_lou
Send Message
View as an RSS Feed
View kaptain_lou's Comments BY TICKER:
Latest  |  Highest rated
  • Whitestone REIT Is Now Yielding 8.9% [View article]
    Brad - good article on WSR. While the company does have some higher leverage, it is certainly worth a look at the current price and I own some shares of the company. Just a question on some of your articles on WSR.

    In July 2013 you posted an article recommending WSR when it was trading around $16 and think you stated "Don't Mess with this Texas Shooter." The yield was about 6.5% then, but the stock is now under $13. It may be a good buy now, but can you give any insight as to why you recommended the stock at $16. Their tenant mix has not changed much since then.

    Thanks for any insight you may be able to provide. In any event, the stock appears undervalued now - at least on a Price to FFO ratio standpoint.
    Aug 2, 2015. 10:17 PM | 1 Like Like |Link to Comment
  • Earnings Season Restores Rationality To REITs [View article]
    While CORR is an interesting investment, most of their revenue is derived from two tenants. It's clearly high risk. A more conservative investment in the company is their preferred shares.

    IRT is a much safer investment, even with the higher leverage. Rents can always be raised on tenants, and they have thousands of individuals renting from them.
    Aug 2, 2015. 09:33 PM | 1 Like Like |Link to Comment
  • Rubicon's REIT Roundup [View instapost]
    I was able to save the file into an Excel spreadsheet and it was easy to view there. The valuations in the apartment sector have nowhere to go but down.
    Jul 25, 2015. 08:42 PM | Likes Like |Link to Comment
  • Store Capital: A Differentiated Net Lease REIT With Superior Total Return Potential [View article]
    Thanks for the response. Heald College was shut down only recently, so occupancy may have been 100% when their last quarterly report was filed.
    Jul 19, 2015. 02:00 PM | Likes Like |Link to Comment
  • This High-Dividend Stock Yields Over 11%, Has 36% Cash Flow Growth, Goes Ex-Dividend Soon [View article]
    Thanks for a good article on a very unique shipping company. While the company only has five ships currently, it appears they are leased for the next several years and revenue is basically guaranteed for the company. There is a little risk with Gazprom being one of the lessors, but the yield may be worth taking a little bit of risk.

    Their recently issued 9% preferred stock looks very attractive and is trading below par.
    Jul 18, 2015. 08:46 PM | 1 Like Like |Link to Comment
  • Store Capital: A Differentiated Net Lease REIT With Superior Total Return Potential [View article]
    Thanks for a good article. It helped provide me with a much better understanding of the company. I notice that one of their top tenants is Heald College. Is this the college that was recently shut down?

    Their balance sheet looks solid and I like the fact that their top 10 tenants make up less than 20% of total rents.
    Jul 18, 2015. 08:39 PM | 1 Like Like |Link to Comment
  • Pound-For-Pound Apollo's 10.5% Yield Is The Best In Town [View article]
    Nice article and probably one of the author's best on Commercial REITs. I would also agree with Brad's decision to only hold 10% of his portfolio in investments like this.

    The other angle on a this company is to place 50% in the common stock and another 50% in their preferred stock issue. As funds allow, I will be doing this in the next couple of weeks and be buying on any weakness in the market.

    Thanks for the article.
    Jul 12, 2015. 10:07 PM | Likes Like |Link to Comment
  • Retirees, You May Want To Add Preferred Stock To Your Dividend Growth Portfolio [View article]
    David, in the article you mention that you have some preferred shares of AGO. As you may have read in the news, AGO insures some debt of Puerto Rico and it appears that the island may default on some of their debt. What are your thoughts on the preferred now?

    For me, the preferreds of REITs are easier to value because most have balance sheets that are easy to read. The financials of insurance companies, such as AGO, are much harder to read - at least for me. Thanks.
    Jul 4, 2015. 12:03 PM | Likes Like |Link to Comment
  • Retirees, You May Want To Add Preferred Stock To Your Dividend Growth Portfolio [View article]
    David, it is interesting to note that CBL only trades at 2 times sales. This is a very low multiple for a REIT, but they do have a fair amount of debt.
    Jul 2, 2015. 09:28 PM | Likes Like |Link to Comment
  • Retirees, You May Want To Add Preferred Stock To Your Dividend Growth Portfolio [View article]
    David, good questions. I've been a CPA for over 20 years, so the financial analysis comes a little easier for me, but here are my answers:

    1) CBL debt is rated Baa3, so the preferred would be generally be rated two steps below. This should give investors a general idea of the rating.
    2) You can go to the SEC filings for CBL and print out the balance sheet page. Divide their total debt by the Cost of the buildings (and DO NOT back out the depreciation). If debt is 50% or less, than the preferreds are probably "safe" in my opinion. This generally works for REITs only. However, some REITs may have bought their properties years ago, so cost may not matter. But I do use this as a general rule of thumb.
    3) Yes, the common may be a better buy right now. However, as you mention in the article, the dividend could be cut on the common. The preferred is cumulative, so it would be hard to suspend the dividend on the preferred.

    At least for now, the preferred offers less downside potential. I may buy the common stock if the price drops lower, but REIT common stocks have not hit a bottom yet. Hope this helps.
    Jul 2, 2015. 09:24 PM | 1 Like Like |Link to Comment
  • Retirees, You May Want To Add Preferred Stock To Your Dividend Growth Portfolio [View article]
    David, great article for investors that are new to preferred stocks. Beside the basics, I think you hit on two key areas:

    1) Just because a preferred is unrated, does not mean the investment is not worthy of investment. Many companies just don't want to pay Moody's or S&P expensive fees to rate a preferred issue. I've been an investor in the preferred stock of UBP for years. The company is relatively small, but their balance sheet is solid.

    2) Preferreds that are callable at any time, but trading right around par are good investments now. They provide limited downside potential, due to the fact that they could be called at any time, but still a very nice stream of income. I recently purchased shares of CBL-PD at $25.10. Callable at any time, but they are trading with a little bit of accrued dividends. I'll collect over 7% and have an investment that should continue to trade around par.
    Jul 1, 2015. 09:49 PM | 1 Like Like |Link to Comment
  • WP Glimcher's Honeymoon Turned Into A Bad Dream [View article]
    While the REIT sector has been beaten down over the past two months, this is probably on of the author's best articles. Fair and balanced. The exposure to Sears and JCP is an area of concern, but the stock has been unfairly punished. Rents on those locations are clearly below market, but it will take time to get them rented as SHLD and JCP are closing many locations.

    I've been a fairly large holder of WPG-PH shares since the merger, but it is time to buy into the common stock now. Thanks for the article and for the insight on the company.

    KL
    Jun 13, 2015. 11:14 PM | 1 Like Like |Link to Comment
  • Investing In One Sucker Yield REIT Can Sink The Fleet [View article]
    As a side note, SIR's bonds of 2/1/25 are yielding about 4.9%. A nice secure play for fixed income investors. CUSIP 81618TAC4. Rated Baa2/BBB-.

    LXP is a steal at the present time with a yield of about 7.5%, which is covered by FFO. Thanks for the articles on the company.
    Jun 9, 2015. 10:55 PM | 2 Likes Like |Link to Comment
  • Investing In One Sucker Yield REIT Can Sink The Fleet [View article]
    Brad, thanks for the response. I really liked SIR before they took on the Cole properties. However, they do trade below book value and have been able to raise rents above inflation. Also, they still have a great credit rating of Baa2 - so I would respectfully disagree that they are highly leveraged. In addition, they recently raised the dividend from .48 per quarter to .50. While the credit rating agencies can be wrong from time to time, they do their homework.

    Their bonds are currently a great value and the pension fund I help manage will be picking up some of those bonds in the next 30 days. Hope this helps. Have a great week.
    Jun 9, 2015. 10:29 PM | 2 Likes Like |Link to Comment
  • Investing In One Sucker Yield REIT Can Sink The Fleet [View article]
    While the management of RMR has always been controversial, there does come a time when the assets of any company can be undervalued. This may be the time. The dividend of GOV and SIR appear to be covered by AFFO, and SIR has recently raised their dividend to .50 per quarter. While investors need to be diversified, a small position in either of these companies may provide decent returns in the future.

    I've subscribed to a monthly newsletter for 15 years, the Income Securities Advisor, which lists GOV and SNH as a buy. They DO NOT accept advertising from any outside companies and rely only on subscription revenue - so their research is never tainted.

    For fixed income investors, the bonds of SIR and SNH look extremely attractive at the present time. Both are investment grade and can be easily purchased.
    Jun 8, 2015. 09:38 PM | 5 Likes Like |Link to Comment
COMMENTS STATS
295 Comments
182 Likes