Mortgage,Net Lease, Outlet Ctr REITs Biggest '02 Gainers
Dow Jones, Tuesday, August 13, 2002 at 20:35
By Janet Morrissey
Of DOW JONES NEWSWIRES
NEW YORK -(Dow Jones)- Companies that invest in mortgages, retail outlet centers and net-lease companies have been the biggest gainers in the real estate world in 2002. And many investors don't expect the ride to end anytime soon.
Low interest rates and the sour uncertain economy have driven investors toward companies with higher yields, higher-yielding companies and ones that offer stable secure cash flows.
A handful of mortgage REITs - Dynex Capital Inc. (DX), Criimi Mae Inc. (CMM), American Residential Investment Trust Inc. (INV), NovaStar Financial Inc. (NFI), Anworth Mortgage Asset Corp. (ANH), Capital Alliance Income Trust Ltd. (CAA), Impac Mortgage Holdings Inc. (IMH), RAIT Investment Trust (RAS), and Annaly Mortgage Management Inc. (NLY) - lead the pack in the top 25 performing names.
Mortgage REITs and net lease companies are the"most interest rate sensitive"of the bunch, said Marty Cohen, president of Cohen&Steers Capital Management Inc.
Mortgage REITs particularly are"pure interest rate plays,"he said.
And with the Federal Reserve Tuesday indicating it may cut rates further in order to avert a double-dip recession, the groups' business prospects continue to look bright. |
