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To: wlheatmoon who wrote (20303)	2/18/1999 6:00:00 PM
From: Bonnie Bear	Read Replies (1) \| Respond to of 86076

reits: I like PNP and AVB because I can kick the tires on their property holdings and do the math. But I'm bullish on california real estate...most of the state never recovered from the end of the Cold War and there's lot of really cheap property in places with nice weather and great infrastructure...if interest rates can stay low, businesses will start up to replace the old military industrial complex. The big fido funds go for the reits with the most shares outstanding...EOP, EQR, CEI. I bought RFI and RIF when the NAV was reset at the end of last year...these funds always run at premiums, the best thing to do is to set a limit order at nav and wait patiently for them to dip. These are favorite reit funds because they bundle up the dividends so they can be reinvested at 7-8% every month. Reits have never sold so cheaply...they are priced for The Great Depression II...even in a bad depression the reits still pass along depreciation and reduced rents, they can buy their competitors for pennies on the dollar and bulldoze anything that looks like competition, so I really think they're way oversold. Here's the yucko story ginned up for the street to dump reits: 1) everybody moved out of apartments because they can afford to buy houses 2) nobody uses shopping malls anymore, they all shop on the internet 3) we have too many office complexes because everybody can telecommute from home using the internet. Meanwhile my local AVB apartment complex is renting 2-bedroom apartments for $2500 a month because internet workers don't want to buy half-million-dollar shacks. cohen and steers have an aggressive-growth reit fund CSSPX that lost half its value...it doesn't have much dividend, it was stuff picked for internal growth. You might take a look at its holdings (http://www.cohenandsteers.com)