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

To: Paul Senior who wrote (32873)	11/26/2008 9:15:29 PM
From: Grommit	Read Replies (2) \| Respond to of 78748

I searched the reit universe and these have the lowest debt ratios, and all claim to have no unusual occupancy issues. That may change, but I can handle a temporary dividend reduction, if needed. Most residential REITs are paying under 10%. CLP (80% residential) at today's 18% is a steal. A bigger steal over the past few days. I bought a ton. Same thing with office and mixed reits. Some have similar yields but their debt ratios are much higher. Few (if any?) have as low debt as these. I figure residential is much less risky than office, and deserves a lower yield. That's the way they always have traded. Here is more detail for the lazy: CLP earned 41 cents last qtr based on rents alone (excludes property sales & development). So the dividend of 25 cents is well covered. Additional special dividends are expected. The other two reits dividends are not as well protected with earnings. But again, they say that all is well. We will see in a few months when 2009 outlooks are issued. Forced selling or something made these steals last thursday. They still are. Prices might get whacky again, but even if they do, locking in a nice 18% or 32% yield is something that does not come around often. column one is the div yield based on closing price last thursday. two is yield based on todays price three is stock price increase since i posted. yield yield price incr 11/30 today since 11/20 HRP 50% 32% 55% CLP 28% 18% 61% DRE 47% 24% 96%

To: Paul Senior who wrote (32873)	11/27/2008 2:37:00 PM
From: rllee	Read Replies (1) \| Respond to of 78748

Is FCEA still one of Marty Whitman's favorite property stocks? Can't believe that this one is now selling in the 5's. Hope Marty did his homework well on this one.

To: Paul Senior who wrote (32873)	11/30/2008 2:54:50 AM
From: Spekulatius	Read Replies (3) \| Respond to of 78748

REIT's there is something wrong with commercial real estate and it's not just the REIT prices. blogs.wsj.com Some where I read in the WSj that some AAA mortgages were yielding 14% ! I do understand that AAA probably does not man much at this point. I also found that senior debt of prime REIT's trades at almost 12% yield. So there is clearly a substantial cost of capital issue with REIT's. Since most REIT's operate with cap rates in the single digit's it is apparent that REIT's cannot earn their cost of capital if current conditions persist for a significant time. If commercial real estate indeed goes downhill there is a lot of pain for banks ahead as well and this time it's going to hit many smaller banks as well. I have no idea how this is going to work out.