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To: John Pitera who wrote (1610)	5/20/1999 7:14:00 PM
From: Henry Volquardsen	Read Replies (1) \| Respond to of 3536

Hi John, Personally I liked REITs a lot better about two months ago. They've had a nice run up recently. That said I like having a portion of my own portfolio in good quality REITs and think they are a good value in the longer term. I'm not familiar with CEI. I'm hesitant to mention specific equities on this thread. But for yield oriented accounts there are two issues that I own that aren't widely known. The first is Allied Capital (ALLC). They are a small business lender. Very good at credit analysis. With a long history of raising dividends. They get a kicker to their lending by doing deals with warrants attached and other equity kickers. Definitely not a stock that is going to double by December but they have a comfortable, stable current yield and a slowly rising stock price (over a long term perspective). The other is Carey Diversified (CDC). THey do what is called triple net leasing. Not very sexy but pretty low risk. High yield that should rise slowly over time. Again not a high flyer but the yield appears pretty secure. I mention these two because that is where I have my 'yield' money invested. Look into them yourself before even mentioning them to anyone else.

To: John Pitera who wrote (1610)	5/20/1999 7:54:00 PM
From: Paul Berliner	Read Replies (2) \| Respond to of 3536

Hi Henry & John, I am very interested in the triple-net-lease, primarily because I scored by going short Captec Net Lease Realty, upon Boston Chicken's bankruptcy - CRRR had a large amount of its portfolio leased to BOSTQ. I read the prospectus when the Co. went public over a year ago, and then the idea to short it popped into my head when BOSTQ waived the white flag some months thereafter - if it was not for CRRR, I'd have no idea what a triple-net-lease is. This isn't a real estate thread, but the subject is pretty interesting and very under-discussed, so here's text from Captec's prospectus that describes what a triple-net-lease is, as many on the thread may not have heard of it: >The Company generally acquires properties from operators or developers in locations which have exhibited growth in retail sales and population. Upon acquiring a property, the Company normally enters into long-term triple-net leases (the "Leases") (typically 15 to 20 years plus one or more five-year renewal options) with the Lessees which will operate the property. Under the terms of a typical triple-net Lease, the Lessee is responsible<PAGE> 6 for all operating costs and expenses including repairs, maintenance, real property taxes, assessments, utilities and insurance. In addition, the Leases provide for minimum rent plus specified fixed periodic rent increases or, in certain circumstances, indexation to the Consumer Price Index ("CPI") and/or percentage rent. The Company believes that the structure of its Leases provides steady periodically escalating long-term revenue while reducing operating expenses and capital costs, and that its underwriting standards reduce the risk of default or non-renewal. Defaults by Lessees or premature terminations of Leases could have a material adverse effect on the Company's financial condition and its ability to make distributions to stockholders. See "Risk Factors -- Creditworthiness of Lessees and Financial Instruments" and "Description of Properties and Leases". P.S. The Company never really suffered significantly from the BOSTQ connection, but despite repeated assurances by the Co. that there wouldnt be a material effect on earnings, the stock slid anyway because shareholders were frightened to death - it didnt help the BOSTQ's bankruptcy (and book cookin') were well-publicized events.