Mike,
>>wayne, the reason they can pay out more than eps is that eps have
depreciation deducted, but, except for depressions or some really bad
selection, real estate doesn't depreciate in the real, non-accounting,
world.<<
I understand what you are saying, but you would think from time to time some portion of the accounting depreciation would have to go towards the replacement and upkeep of the buildings at appreciated prices. I own an small investment property. I accumulated depreciation for about 10 years, but just shelled out a bunch of it to replace a kitchen, doors, floors, etc... It still worries me even though it's probably OK.
Wayne |
