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

To: Nikole Wollerstein who wrote (2161)	8/26/2001 11:27:41 AM
From: Richard Barron	Read Replies (1) \| Respond to of 2561

Nikita, This was my comment on 8/16 post # 2158: "The key will be 2 points. Is TEE overleveraged like GTA with strict covenants? They are very exposed to variable rate notes which are extremely low currently. Is their major tenant solid?" According to Ralph Blocks "REITStreet": The announcement by National Golf Properties (TEE) that American Golf, which leases “all but four” of TEE’s 146 golf courses, is bleeding red ink ($8.7M through Q2 of this year) and that American’s fixed charge coverage ratio fell enough to trigger a default under the debt covenants of both TEE and American. Despite bad weather, a slow economy and too many courses, Merrill Lynch believes that TEE’s dependency upon American is the primary source of investors’ woes, as TEE “may be forced to cut its rents” so that American will remain viable. This answers both questions with a negative bias and extreme risk. I would stay clear of TEE for a while until the conditions stabilize for American Golf and TEE. Richard