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

To: Grommit who wrote (35458)	9/29/2009 10:32:23 AM
From: E_K_S	Respond to of 78768

Hi Grommit It seems like one of the last undervalued REIT preferrds caught fire today and is up over 4%. The current price reflects a post recovery high and matches it's price on 9/29/08. Can you guess the company? Its the First Industrial 7.25% preferrds both J series and K series. At the current price of $15.30 for the FRpJ, the yield is now 11.8% It appears that the common shares still have a ways to go to match their 52wk high. Of your listed group, HRP is the closest to it's recovery high. finance.yahoo.com The YOY comparisons get easier as the posted highs will reflect post crash levels. The best relative comparison is to use the first week of September 2008 prices as the normal base period. I am cautious to put any new money into the common shares but with the yields down on all of the preferrds, it appears that the risk/reward may now be with some of the better positioned common shares. It was suggested by an analyst that those companies that were able to raise new capital w/o too much dilution are better positioned for the long term. Good management will use the new capital to pay down debt and purchase new properties (50 cents on the dollar). I know that BDN raised new capital recently. Do you recall what others on your list completed successful debt or 2nd common share offerings? EKS

To: Grommit who wrote (35458)	9/29/2009 11:51:04 AM
From: MCsweet	Respond to of 78768

On REIT preferreds, Thanks for the info, Grommit. I see FR is doing an equity offering today. MC

To: Grommit who wrote (35458)	12/23/2009 3:57:27 PM
From: E_K_S	1 Recommendation Read Replies (3) \| Respond to of 78768

Hi Grommit - Followed you in on GOVERNMENT PROPERTIE (NYSE: GOV). Will be selling my HRPpB next week and wanted to hedge my lost 8.75% preferred dividend with a safe high dividend payer. GOV is a good candidate as it yields 6.9%. GOV is the spin off of all of HRP government properties back in June 2009. The new dividend will be "qualified" and GOV stock should grow in value especially as the government sector grows. I no longer own HRP common but am looking at starting a new position if there is a sell off below $6.00/share. For now GOV looks like a safe place to park some funds. Peeled off a few shares of BHP. Stock up 2.7% today and approaching both a 52wk high and 10% from an all time high. This is my number one position in the portfolio and after today's sale still remains my no 1 position (10% more than my No. 2 - AAUK). Need to whittle down the shares and reallocate the proceeds into other sectors. EKS