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

To: Tapcon who wrote (33823)3/17/2009 9:07:08 AM
From: E_K_S  Respond to of 78776
 
Hi Paul - The key is to be very selective on your buys. The good companies should sell off along with the bad. Spekulatis posted this report ( citigroupgeo.com ) from citigroup which has a very detailed analysis for the valuation of several Reits.

theHunter REIT Industry Comparative Valuation Analysis (pg 57) presents a table showing the "Implied Value" $/sf & Cap Rate for several REITs grouped by "property type". On page 76, they arrive at a "Universal Summary Rating" which I have been using to pick out potential survivors.

It's a moving target and I expect things to get worse but this provides a good first screen for selecting "safe" REITs. You just have to avoid the land mines and have your exit strategy in place if FFO's start to fall off a cliff.

EKS



To: Tapcon who wrote (33823)3/21/2009 2:50:25 AM
From: Spekulatius  Read Replies (1) | Respond to of 78776
 
re SPG - the recent SPG debt offering at 10.7/8% and the common secondary should remove any doubt that SPG as well as most other REITs are fighting for survival and nothing else.

I hate to sound that negative but you have to see things the way they are. In an unforgiving environment like we have today this is a survivor game and many REITs won't make it.


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