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Strategies & Market Trends : Value Investing

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To: itilis2003 who wrote (21935)	8/19/2005 2:25:51 PM
From: itilis2003	of 78802

FSPs debt press release relates to their investment banking business, not their owned REITS. They own 32 properties free & clear with no debt whatsoever. The debt is for brokered deals apparently. There is some confusion over the dividend since they paid 41 cents and then 21 cents representing a 4 month and 2 month period but the 62 cents for the 6 months is consistent with what they have been paying for the last few years. Yahoo shows a 21 cent annual dividend which might disaude some folks from looking closer at it. So I expect about a 31 cent quarterly dividend going forward. Most everyone that owns any of their 60 million shares bought in $100,000 lots apparently. Many have cost basis of $10 + above but they are not the kind of folks that switch in & out of things. The biggest risk I guess is interest rate risk. I dont particularly like the fact that the REITs have gone up SO much over the last few years. But at the same time, I need yield and these guys are conservative. They dont overpay for properties and they dont leverage them. There has been no analyst coverage or anything so that could be a future positive. They are not in a hurry to sell a property earning a nice yield only to put the cash in a 2% money market so they are only going to sell a property when they feel they can reinvest the proceeds into something better. Wondering if I should buy RTU also. I never did anything with that.

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