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

To: Michael Burry who wrote (9312)	12/17/1999 12:22:00 PM
From: Bob Rudd	Read Replies (1) \| Respond to of 78565

Au contraire, Mike, HRP is more a play on relative value TO the sector than broad health OF the sector. IF HRP comes to trade at modest premium to the sector [Instead of 2x currently] it will have 50+% gain to supplement the 16% yield. REIT pricing of office sector has already priced in the 'peak of cycle' scenario, despite little evidence of the oversupply problems that generally mark the peak of real estate cycles. Today HRP confirmed the 1.28 annual dividend with these comments: Commenting upon the dividend announcement, John A. Mannix, President of HRPT, made the following statement: "Although not reflected in the current trading price of our shares, 1999 was a solid year of growth and improved operating results. The Board's declaration of the fourth quarter dividend is intended to affirm our belief in the security of our current cash flows. "HRPT currently owns 192 high quality office properties located throughout the United States. These properties are almost 98% leased. HRPT's largest tenant is the U.S. Government which is responsible for almost 20% of our rental income. About 50% of our total rents come from tenants that are investment grade rated. The average remaining lease term in our office buildings is almost seven (7) years." Took a nice jump on the news. bob