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

To: Allen Furlan who wrote (10741)	6/18/2000 11:39:00 PM
From: James Clarke	Read Replies (3) \| Respond to of 78753

Allen, a quick glance at the numbers, and that's all it was, tells me the problem here is debt. I would never be claim a margin of safety on a real estate company with 70% debt to equity. You could make a lot of money on this if you're right - leverage works both ways. I prefer conservative REITs, and this looks like a different game. It sounds like you own the debt, but it also sounds like they are selling assets. Be careful. What kind of management are you dealing with here? That said, community shopping centers (supermarkets), if they are reasonably high quality assets, are probably among the safest of real estate assets in a downturn.