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

To: Ontherise who wrote (2130)	6/20/2001 2:11:07 PM
From: Richard Barron	Read Replies (1) \| Respond to of 2561

Kevin, TCT - It is a fine investment, it just doesn't excite me above 18. Originally, most of TCT's properties were in Baltimore, which has small rent increases. I think they are more diversified these days. Mr. Buffett has more than 5% of the company, which acts as a strong floor. TCT pays out over 80% of FFO in dividends which is high among REITs. They had very low FFO growth for 5 years, which accelerated in 1999 and 2000. This last quarter was just 2% growth year over year. So... the dividend is fine and safe, but this is probably going to grow FFO slower than many of the apartment REITs. I believe it was trading under 15 when Mr. Buffet started buying it. When EQR was near 50 2 months ago, they had the same FFO multiple as TCT, but a much stronger growth potential. Richard