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


To: Spekulatius who wrote (33910)3/31/2009 11:28:47 PM
From: Spekulatius  Read Replies (3) | Respond to of 78776
 
re REITS. 50% off sale for the Boston Hancock Tower. This is one of the finest buildings in Boston. Implied cap rate at this price is about 9.5%. Now compare this to the implied Cap rate for you favorite REIT (based on total EV) and see if you got deal.

reuters.com

Late Y2006 was close to the CRE peak so 50% off means that a REIT with 50% leverage at the peak would be worthless in case it would liquidate now.