Michael,
NHI could be a bargain. One has to do the due diligence in any healthcare stock these days to determine who the tenants are, how strong they are, and if they go belly up, what the options are to release the space. The key is how strong the tenants are combined with the REITs debt structure.
Allen,
PRT is a definite bargain, especially the preferred at these rates. HOWEVER, there is high risk, because if interest rates climb 1/2 to 1% more, then it is fairly priced, and if interest rates climb more, the common will start to become worthless. If they start to liquidate some of their portfolio and pay down debt, this company could be OK. I don't know if they have a development arm that is overhead to be dealt with, but I wouldn't be surprised. The preferred is much safer, as their equity and dividends come before the common, unless someone tries a WDN type move, but I doubt if anyone will.
Peter,
I think retail (both strips and malls) will definitely be hurt (short term) by the internet, but I also think the mix of tenants (more entertainment, and new type of businesses) will adapt and keep the properties leased up after a 5-10% effect over 3-5 years. If the economy stays strong, they will barely notice any effects. I don't think drug stores and grocery stores will be hurt too much, but the operators will have to adapt as their pricing structure will be effected moderately by the internet sites.
Richard |
