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Strategies & Market Trends : Value Investing

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To: Spekulatius who wrote (39358)9/21/2010 11:56:11 AM
From: E_K_S  Read Replies (1) of 78742
 
Re: Farmland

I wonder if there are any REITs that specialize in Ag Production & farm management? I did find this agroreit.com.

The closest thing I own is Plum Creek Timber Co. Inc. (PCL) which is an REIT Trust that owns owns and manages timberlands in the United States. They own and operate approximately 7 million acres in 19 states.

plumcreek.com

They generate some of their cash flow doing conservation exchanges. 1.3 million acres have been committed to conservation
through conservation sales, easements and land exchanges. They can periodically harvest the timber on these parcels but for a guaranteed cash flow have agreed to not develop or sell these properties.

It's been an ok investment generating on average a 5% return in my IRA. I probably should average down as the shares I bought in January 2008 are selling about 12% lower today.

I do think a well managed Agriculture REIT w/ properties diversified around the world might do well. Their land assets would provide a good hedge against inflation and the cash flows generated from their crop(s) production should produce a reasonable dividend stream for the investor.

EKS
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