REITs - Real Estate Investment Trusts - Info & Discussion: REITs - (CCG, EQR, SPK)

» JenL_3 - REITs - (CCG, EQR, SPK)

REITs (CCG, EQR, SPK)

We're enjoying a long bull market not only in stocks, but in real estate as well. Stocks and property meet in Real Estate Investment Trusts (REITs), which are basically holding companies for specialized types of properties. REITs operate by somewhat different rules than corporate stocks. Created by the U.S. Congress in 1960, these trusts avoid corporate taxation by distributing most of their taxable income to shareholders in the form of dividends. These days, thanks to continued good real estate fundamentals and because the share prices are somewhat deflated (thanks to fears of overbuilding in 1998), dividend yields are quite high. Accordingly, REITs in general are an interesting bet for both capital appreciation and income.

Three REITs were recently spotlighted by Standard & Poor's as good prospects: Chelsea GCA Realty (CCG), Equity Residential Properties Trust (EQR), and Spieker Properties (SPK). CCG specializes in ownership of manufacturers outlet shopping centers. Equity Residential Properties Trust, as the name implies, focuses on apartment properties, currently holding hundreds of buildings in 34 states. Spieker Properties (SPK) owns about 20 million square feet of office space on the West Coast.

To see a comparative chart of these three REITs, visit the following site:

http://bradhill.com/tips/stock/reits.htm

Brad Hill http://www.bradhill.com is the author of 10 books about the Internet and personal technology. He currently teaches Investing on the Web, an online course for ZDU; writes the Investor 2000 column for Raging Bull; and is the producer of Closing Bell, a daily market report.

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Paul - Interesting that this article mentions two Reits, EQR and SPK, that did not make your list. Do you have any opinion on these Reits?.....Jen

-- posted by JenL_3