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Strategies & Market Trends : REITS - Buying 1 - 2 weeks before going ex-dividend

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To: Nikole Wollerstein who wrote (2199)10/5/2001 7:39:39 PM
From: Richard Barron  Read Replies (2) of 2561
 
Nikita,
CPT stated that they are going to meet their FFO projections, which means to me that it isn't universal. With so many apartment REITs warning, and seeing PPS trading so low, I am concerned about overbuilding in the apartment sector, since the economy and the Sept 11 attacks aren't likely to affect apartment vacancies by much.

Grommit and all,
Despite the addition of the 6 stocks to the various S&P indices, the ^RMS is just barely above it's 200 day moving average and dropping. I just have this feeling that the money will be moving out of REITs for a while as the action in the Nasdaq seemed very strong with the sort of accumulation that could easy be a bottom. If so, some of the population that ran to REITs for safety will start to try out the tech and Nasdaq again.
I am as likely to be wrong as right, but with all the excitement about REITs being added to the S&P, one surely would not expect anything but strong accumulation, and there has been selling since Thursday midday.

I wouldn't recommend my 2 favorite REITs right now, because I am 50% in cash and am staying that way. EQR here is interesting and the same with BXP and EOP, but I am waiting for more of a drop before accumulating.

KTR - it was interesting that they sold some property this week for huge gains (50%+) in just 2 years. They must have some decent size bankrupt tenants to be trading with a 10% dividend if they can buy properties at such great values.

biz.yahoo.com

I agree with Jeffrey that healthcare REITs have the safest dividend from recessionary forces and should be steady.

Richard
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