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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Madharry who wrote (8993)	11/19/1999 10:32:00 AM
From: James Clarke	Read Replies (1) \| Respond to of 78624

<<It seems to me that in most cases the dividends offered cannot be generated by the REITs cash flow. They must either sell properties, issue shares, or mortgage properties.>> Where did you hear that? That is absolutely not true except for a few very distressed cases like SNH.

To: Madharry who wrote (8993)	11/25/1999 12:42:00 AM
From: Q.	Read Replies (1) \| Respond to of 78624

re. REITs, it is completely untrue that "in most cases the dividends offered cannot be generated by the REITs cash flow" re. how to pick them, if you don't know where else to start, try looking at the REITs with the biggest market caps. To name just one, EQR is one of the very biggest. It has a dividend of $2.84, with cash flow from operations (FFO) that was $4 last year and expected to be $4.47 this year. You will note that the dividend is easily covered by the cashflow. EQR is a good and steady performer, with a 7.6% yield, and an 9% growth rate on FFO, as estimated by Salomon Smith Barney. Adding these two numbers gives you a total expected return of >16%. There are many other REITs you can pick that have yields and growth rates similar to those of EQR.