REITs - Real Estate Investment Trusts - Info & Discussion
- GoodGuy
- RhyneN
- RhyneN
- RhyneN
- JenL_3
- RhyneN
- RhyneN
- JenL_3
- RhyneN
- GoodGuy
This archived discussion is "read only".
For the corresponding "live" discussions, post in the active topic forum here.
« Previous 1 2 3 4 5 6 7 8 9 10 11 Next »
» GoodGuy - More on REITs
Hi Paul,Thanks for taking time to reply.
BTW I am not looking at REITs to give me NUTgains. I will be considering them as part of my bond portfolio to compliment the GNMAs. Any comments on this approach ?
Also I did some research on NXL. Here is what I found - It is trading near a two year low. They are one of the largest of the strip center mall REITs. My main concern is the strip center mall business in the face of internet shops.
I will take a look at CEI and PRT but they sound like a speculative play. Are their other REITs - more on the conservative side which may be a good bond compliment - that you can suggest I can begin with ? Are their any good sites for my research ?
Thanks in advance.
GG
-- posted by GoodGuy
» RhyneN - A few REIT comments
I have about 25 REITS in various forms in my portfolio. I initially invested in REITs because of Bill Spits, the Treasurer of Vanderbilt University. Bill runs that portfolio by using a number of investment portfolio managers. I met him when he helped with a university foundation investment strategy(I was on that foundation board at that time). Bill wrote a book for individual investors showing how to use mutual funds in the same way he used different portfolio managers at Vanderbilt. He believes that most portfolios should have some real estate exposure as a hedge against inflation. He suggests 10 to 20% of a portfolio in real estate. His book suggests 7 different allocations. In his most aggressive allocation he suggests 80% stocks, 10% US treasuries, and 10% real estate. In most conservative, 20% stocks, 60% bonds, 20% real estate.I will follow up with more on this later. Other duties call right now.
-- posted by RhyneN
» RhyneN - More REIT comments
I started out by investing in some REIT mutual funds. But after a while, I decided I would be the REIT portfolio manager myself and save the fees. Vanguard has a low fee REIT, but it holds 130+ different stocks. I felt that management would lead to better returns.There are a lot of sources of information. If you like hard copy and are willing to spend $269 for a year of Realty Stock Review, this seems good and has a supporting web site. (the magazine name in lower case with the usual www and com)
-- posted by RhyneN
» RhyneN - Even more REIT comments
Yahoo shows Zacks estimates and the numbers are in FFO, not in EPS. Schwab uses First Call and those numbers are, I believe in FFO. Morningstar gives a good analysis (I don't know how much is free since I get as a subscriber)
There is some good discussion on Yahoo and some Yahoo clubs like REITLoversParadise. Ralph Block, an analyst and author of the leading book on REIT investing, posts sometimes to the MOTLEY FOOL Real Estate thread (Using Reitnut handle).
-- posted by RhyneN
» JenL_3 - Some REIT Links
Rhyne - I'm interested in hearing more about how you made your own REIT mutual fund. Thanks for the resource information on REITs . Here are some clickable links to the resources you mentioned:
MorningStar.net (Type in REIT in "Search this site" for lots of analysis and information on REIT investing)
REIT Investing Club at Yahoo!
REIT Message Board at fool.com:
Industry & Market Analysis - Real Estate
How about scouting these resources and bringing the best-of-the-best back to this thread? Just post links or copy and paste excerpts from the articles........Jen
-- posted by JenL_3
» RhyneN - More REIT stuff
In my previous post I meant to cite Ralph Block's free column, REITWEEKhttp://www.undiscoveredmanagers.com/REIT...
The 10/1 issue discusses the current situation with REITS. Is this a great buying opportunity or is the market foretelling a slide in the real estate market. Well worth reading.
-- posted by RhyneN
» RhyneN - Some other sites for REIT information
http://www.reitanalyst.com has some good information on a limited number of REIT stocks. It has free reports on a few stocks and about 40 stocks are analysed in its REIT Relative Vlaue Tables. This is a good place for those that might get confused by the sites that give detailed information on the over 150 equity REITS.http://www.nareit.com has a good section for those that want to learn about REITS, called About REITS
Morningstar analyses stocks and gives letter grades in four areas- Growth, Profitability, Financial Health, and Valuation. I think these areas are especially helpful in analysing REITS. Just put the stock symbol in the quote box, and after getting the quote click on the Snapshot choice.
-- posted by RhyneN
» RhyneN - Concluding posting on REITS
I posted today because I found this thread and saw several people saying they were trying to learn more about REITS. I learned about the sites, etc. over a couple of years and hope this can speed the learning process for those interested.The REIT Analyst site is a pretty good place for a new learner to start looking at the numbers (after you have read about REITS at the NAREIT site). Equity REITS are classed in several groups. Some fall out of favor from time to time - right now health care REITS are out of favor because of the uncertainty of the Balanced Budget Act on medicare and medicaid reimbursement and its effect on the tenants.
Someone asked how you go about putting together a group of REIT stocks. I own 13 of the REITS in listed in the REIT Relative Value Tables at the REIT Analyst site. I picked stocks that were expected to grow (FFO growth rate) faster than the then current P/FFO ratio. Unless the P/FFO ratio changes, you can estimate your future return by adding the expected FFO growth rate to the current yield. For example, a REIT with a 7% yeild and a 10% growth rate, would return 17%, unless the P/FFO ratio changes. Of course, we are in a period where the P/FFO ratio is dropping so the current returns are not impressive.
I overweighted stocks in those REIT groups that I thought had the best chance to do well - such as offices and industrial, but chose stocks in several groups. Right now I have 9 in the office and/or industrial grouping, 7 in apartments, 3 diversified REITS, 3 in retail, 2 in hotels, and 4 in the "other" category (storage, manufactured homes, golf courses)
Since REITS can get in trouble by borrowing too much, I look at the relationship of debt (and preferred stock) to total equity (or total market cap).
Most of my picks have been pretty good, but most have dropped in value as the whole sector is out of favor and the P/FFO ratio is sliding down.
Is this a great time to buy? I hope so because I have been using this as an opportunity to do so.
Be sure and read the REITWEEK that I mentioned in a previous posting today.
-- posted by RhyneN
« Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Next »
Please follow the guidelines set forth in the Suite101 Posting Etiquette when adding to the discussion.