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Strategies & Market Trends : Value Investing

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To: Spekulatius who wrote (27602)	5/6/2008 11:06:23 AM
From: E_K_S	of 78669

Hi Spekulatius - Some interesting news today for Senior Housing Properties Trust (SNH). HRPT Properties (HRP) agrees to sell 48 buildings to Senior Housing Properties for $565M biz.yahoo.com ================================== The value proposition take away is that this sale was property that HRP had owned and managed for the past nine years. A hidden jewel with a huge capital gain. HRP continues to sell below stated book value and now with this sale, they will begin to recognize these hidden gains. From the article:"... As of December 31, 2007, HRP’s historical investment in these properties was approximately $397 million, and its depreciated book carrying value of these properties was approximately $350 million; accordingly, HRP expects to realize capital gains of approximately $215 million as a result of these sales. HRP has owned these 48 buildings for an average of nine years. HRP’s aggregate capitalization rate for these sales based on $40.0 million per year of current net operating income from the buildings is approximately 7.1%...." ============================================================= I continue to look for REITs that sell below their stated book value with prime assets that have good long term leases that generate income. You can get a pretty good dividend while you wait. My recent REIT buys include: finance.yahoo.com EKS

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