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Strategies & Market Trends : Value Investing

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To: Paul Senior who wrote (16773)4/8/2003 9:20:20 PM
From: Spekulatius   of 78679
 
ARI and KRC are both in South California where the economy is doing reasonably well. However, KRC has issues with its tenants and also a very high debt/equity ratio of about 2 - too high for my taste.

With respect to REIT's I learned that the expenditures to maintain the properties must be subtracted from FFO to get the dividendable part of the FFO. Also from a shareholders perspective it is prudent to add the preferred share principle to debt rather than equity since the preferred shareholders get paid before the shareholders of common stock.
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