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Strategies & Market Trends : REITS - Buying 1 - 2 weeks before going ex-dividend -- Ignore unavailable to you. Want to Upgrade?

To: Johndee who wrote (1457)	8/23/1999 1:49:00 PM
From: Richard Barron	Read Replies (1) \| Respond to of 2561

Johndee, MT is probably extremely undervalued unless the nursing homes are going to be empty for a year or two. Sun probably is going bankrupt, which affects about 6% of the revenues if I remember correctly, and some other nursing home operators may be in trouble also. Still, the talk is that legislation is going to be pushed that will better balance the costs paid by medicare for outpatient procedures that are currently below the actual costs of the procedures. If not, then medical operators will experience another tough year as PPS phases in some more cuts. They are also facing significant overbuilding in the hospitality sector, which may force a 5-15% backup in FFO for the next year or two. Unless you are a gambler, it's best to be patient and put no new money this way. The dividend is likely to be very safe if the medical legislation corrects the repayments so desperately needed by the nursing home operators. If not, it depends how many of their medical properties end up without a tenant. Richard