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

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To: James Kibler who wrote (2206)10/16/2001 8:25:30 PM
From: Richard Barron  Read Replies (1) of 2561
 
Jim,
I have no idea who will be cutting dividends. I was shocked that CEI's residential development took such a rapid and huge decline. I am still staying on the sidelines. I don't feel that their is any leadership to support REIT prices other than S&P indexing, and I am not sure that the S&P will stay strong as it is getting near the 50 day moving average, and the bears will try to sell down another leg. Hotel, office, and apartment REITs all have slower FFO growth or even FFO decelerating. There isn't enough money in manufactured housing, public storage and healthcare REITs to keep a rally going.
I will buy CEI preferred if it drops another $1.00

Kevin,
BNP had higher FFO earnings 4 years ago than now. Their restaurant properties were mostly or all with one tenant, and they were at minimums, since the restaurants did so poorly. I don't follow it closely, but the dividend should be as safe as the cash flow in their restaurant division. You'll have to research this. I wouldn't expect too much fluctuation with the apartment income stream.
Richard
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