REITs - Real Estate Investment Trusts - Info & Discussion: REITs on the rise????

» RhyneN - REITs on the rise????

REIT stocks seem to be moving up from the low base formed last December. Look at the Morgan Stanley REIT Index (RMS at bigcharts.com). The index broke through 300 today. It hit resistance at 300 earlier this year.

A couple of REITs which analysts expect to have a high AFFO (adjusted funds from operations) growth rate from 2000 to 2001 are SUS (self-storage) and SLG (class B offices in NY). SUS yields about 8.9% and AFFO is expected to grow at a 15% rate. SLG yields 5.9% and its AFFO is also expected to grow about 15%. If the stock price increases in line with the AFFO growth rate, you could have a 20+% total return. Of course, based on the past two years, REIT stocks have not increased in value along with the AFFO growth rate, but sometimes the turnaround must come. SUS is selling a a Price/2000AFFO multiple of about 9X, and SLG is around a 13X multiple.

I own a few shares of both of these. Do your own due diligence. I am not pushing these, just trying to get some discussion on specific stocks started by tossing out an idea or two.

-- posted by RhyneN