Re: Looking for Good REITs.
Last week I began researching REITs to build a good-sized REIT portfolio. Being more conservative, most of my investments are in well-established industry leaders with economies of scale. Most of the pieces are in place now, and the following is a list (in no particular order) of what I bought and why.
For a comprehensive stat sheet regarding all publicly traded REITs by sector, go to nareit.com
Yield numbers and news articles can be found at quote.yahoo.com
1. Simon Debartolo Group (SPG; 31 11/16, + 1/8)
The largest Regional Mall REIT. Has a decent yield of 6.40 percent. Market cap is among the largest of all REITs at about $3 billion. SPG carries above-average leverage with its significant debt. Should be a solid participant in any retail REIT rally.
2. Kimco Realty Corp. (KIM; 33, + 1/8)
One of the top Strip Center REITs. Yield is 5.23 percent. Mkt cap is around $1.2 billion. Also should be a solid participant in any retail REIT rally. Management appears relatively conservative.
3. Starwood Lodging Trust (HOT; 44, + 1 1/16)
The largest Hotel REIT. Rumored to acquire Westin Hotels in the next week or so for some cash and a lot of stock. If it goes through and the purchase price isn't exhorbitant, HOT should bounce on the news. Over the last 2 years, HOT has provided phenomenal returns for investors. Aggressive management. Yield = 3.63%. I think mkt cap could be around $2 billion.
4. Bay Apartment Communities (BYA; 38 3/8, unch)
One of the largest Apartment REITs in the Bay Area. Mkt cap around $750 million. Yield around 4.27%. Bay Area should grow nicely as California continues to be at the forefront of America's modern economy.
5. MediTrust (MT; 39 11/16, + 1/8)
The largest Health Care REIT. Market cap around $2.4 billion. Yield is an attractive 7.18%. Company leader Gosman is brilliant although somewhat eccentric. Demographic trends should favor the Health Care REIT sector for the next decade or more.
6. Equity Office Properties (EOP; 26 3/4, - 1/4)
The largest Office REIT. Headed by Sam Zell, perhaps the most famous and influential leader in the entire REIT sector. Was a hot IPO recently. Zell also started Equity Residential Trust (EQR), the largest Apartment REIT. I believe he still heads EQR. Market cap around 3.8 billion or so.
7. Spieker Properties (SPK; 36 3/4, - 5/8)
Recommended last Friday by the Market Monitor on the Nightly Business Report. Owns office properties in Silicon Valley, the technology capital of the world. Should be a hot growth area for years to come, barring a high-tech collapse.
Philip
Disclaimer: Invest at your own risk. Information provided for discussion purposes only and not to be construed as investment advice. Do your own research. Information not guaranteed to be accurate. |
