Kent,
Medium term, I would stick with convertible preferreds until it becomes clear that interest rates are done going up. The convertibles will be steadier
The highest quality REITs with the leverage below 50% should provide steady dividend increases with limited risk.
I would prefer office buildings and industrial space for the next 3-6 months, as healthcare and hospitality are under pressure. Retail will continue to suffer as more exposure to the internet will scare investors until they see a clear trend of shifting tenant mixes that will provide steady income streams.the company and find out what portion of the FFO is at risk
The most oversold sector is manufactured housing. These should be very recession proof except for the portion of earnings (FFO) that comes from sales on new homes. This should slow drastically as interest rates climb. So, call as interest rates climb.
PSA is a high quality REIT that is still very cheap. I am also looking into the PSA class A common, which has a very high dividend.
To answer your question more directly, of the quality REITs PSA, EQR, DRE are at attractive prices, CPJ below 24-1/2, CCG below 27-1/2, HME near 26, PLD below 18-1/2, SPG near 23, WRE near 14-1/2, WRI near 36.
Richard
One that is struggling that is still a great company is NXL which would be cheap near 13. |
