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Strategies & Market Trends : Value Investing
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To: Paul Senior who wrote (32873)11/26/2008 9:15:29 PM
From: Grommit  Read Replies (2) of 78744
 
I searched the reit universe and these have the lowest debt ratios, and all claim to have no unusual occupancy issues. That may change, but I can handle a temporary dividend reduction, if needed.

Most residential REITs are paying under 10%. CLP (80% residential) at today's 18% is a steal. A bigger steal over the past few days. I bought a ton. Same thing with office and mixed reits. Some have similar yields but their debt ratios are much higher. Few (if any?) have as low debt as these. I figure residential is much less risky than office, and deserves a lower yield. That's the way they always have traded.

Here is more detail for the lazy: CLP earned 41 cents last qtr based on rents alone (excludes property sales & development). So the dividend of 25 cents is well covered. Additional special dividends are expected. The other two reits dividends are not as well protected with earnings. But again, they say that all is well. We will see in a few months when 2009 outlooks are issued.

Forced selling or something made these steals last thursday. They still are. Prices might get whacky again, but even if they do, locking in a nice 18% or 32% yield is something that does not come around often.

column one is the div yield based on closing price last thursday.
two is yield based on todays price
three is stock price increase since i posted. 



        yield     yield        price incr
       11/30     today        since 11/20
HRP    50%        32%          55%
CLP    28%        18%          61%
DRE    47%        24%          96%
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