MB and all,
I think some of the REITs represent good values now and would like your opinion. I like those that are in healthcare properties. Healthcare properties should be somewhat insulated from a downturn. The stocks are way down. Their dividends are high and their earnings have been growing. One extra bonus may be that the actual value of their properties relative to the value that shows up on the books. One I own (HRP) is selling at 1.32(per YHOO) times book. Here is a statement from today's earnings announcement for LTC, another REIT:
Net income available to common shareholders for the second quarter of 1998 included a gain of approximately $8,188,000 on the sale of a skilled nursing facility. The skilled nursing facility, containing 278 beds and located in Montana, was sold for gross proceeds of $11,600,000, which is $7,800,000 more than the Company paid for the facility when it was purchased in 1994 for $3,800,000. In accordance with the NAREIT definition of FFO, the gain on the sale of this facility is not included in FFO.
biz.yahoo.com
Not a bad gain, huh. A property in Montana for 11 million. And this is just one property.
WS
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