REITs - Real Estate Investment Trusts - Info &amp; Discussion

Top 7. Jun 14, 1999 12:43 PM

» RandeS - Lita,

Lita,

Good lead on the Smartmoney article. Looks like three of the five funds I mentioned are profiled.

-- posted by RandeS

Top 8. Jun 27, 1999 10:31 AM

» Oaktoad - There must be a few folks out there that don't have

100% of their portfolio in stocks. I follow BB's (Bob Brinker as if you didn't know) asset allocation theories and altho perhaps a bit more aggressive than he is I still have a fair percent of my portfolio in bonds (gnmas)..

With the recent runup in stock prices I found that I was over allocated in stocks and was planning to sell some stocks and put the money into bonds.

I decided instead to put the money into a group of REITs. All of them yield over 8% and have FFO that exceeds the dividend by a substantial margin. My belief is that this will outperform the bonds with perhaps not as much safety, but the risk reward ratio seems to be in my favor...

Anyone else interested in commenting on this philosophy or just want to trade some comments on individual REITs ???

Jump right in...

-- posted by Oaktoad

Top 9. Jun 27, 1999 10:47 AM

» JenL_3 - REITs, an attractive alternative to bonds in your portfolio

Oaktoad (Paul) - am copying your post to this "REIT" thread that was started fairly recently...Jen

Author: Oaktoad
Date: June 27, 1999 10:31 AM
Subject: There must be a few folks out there that don't have

100% of their portfolio in stocks. I follow BB's (Bob Brinker as if you didn't know) asset allocation theories and altho perhaps a bit more aggressive than he is I still have a fair percent of my portfolio in bonds (gnmas)..

With the recent runup in stock prices I found that I was over allocated in stocks and was planning to sell some stocks and put the money into bonds.

Anyone else interested in commenting on this philosophy or just want to trade some comments on individual REITs ???

Jump right in...

Paul Thode

-- posted by JenL_3

Top 10. Jun 27, 1999 8:17 PM

» BillR_5 - REIT's

Paul,

We had a discussion about Reit's a couple of weeks ago. It may have been on Rande's thread. Maybe someone can help you find it. I tend to agree with you. I'm looking at reit's for my IRA. Which good ones have you found?

-- posted by BillR_5

Top 11. Jun 27, 1999 8:22 PM

» BillR_5 - Never mind

Cancel that. I can see I'm way behind on my reading.

-- posted by BillR_5

Top 12. Jun 28, 1999 8:21 AM

» GoodGuy - FFO ?

Hi Paul,

Would mind explaining - All of them yield over 8% and have FFO that exceeds the dividend by a substantial margin. - FFO ?

-- posted by GoodGuy

Top 13. Jun 28, 1999 7:52 PM

» Oaktoad - REITs that I like and why

With the runup in stock prices I needed to asset allocate more to bonds. I have always sort of thought of bonds as "fixed income" type securities in general. While REITs are not necessarily fixed income they can come close on the downside but still retain some upside potential.

I screened for REITs with a yield of 8% or better. I then went thru a list of about 30 and looked up the FFO for 99 and 00. I picked those stocks that had the lowest ratio of dividend to FFO and then built a group from different types of realty, tho some are diversified already so this is not exact science.

Two that I bought were ones that were bought by Warren Buffet as I figure if he wants them they can't be all bad. These are SKT and TCT

Others are:

BRE CCG NXL USV LHO IRT PHR CEI

I also hold GLB which I have from the proceeds of a limited partnership. It has a high yield and sells for much less than book value. Mgmt currently has a plan to sell off some of the assets and buy back stock. As they have major positions in this stock and as it reportedly is a major part of their own personal wealth, I have held this and contemplated buying some more.

I plan to invest the dividends from these in either more of the same or new REITs as long as they have above average yields and the economy stays bouyant .. which if interest rates stay down is what I think will happen..

-- posted by Oaktoad

Top 14. Jul 2, 1999 5:51 PM

» Oaktoad - Best place to keep REITs in your portfolio

Is in tax deferred or advantaged accounts. Keep in mind that dividends will be taxed at your highest marginal rate if you hold them in a taxable account.

I have mine in my IRA rollover account and treat them as if they were bonds.

I attempt to get my "big winner" capital gain stocks in my taxable account to take advantage of the preferential tax treatment.

With the market hitting new highs it might be time to consider re allocation from stocks to fixed income securities. REITs have still not reached the highs of the past and with a strong economy their earnings should do very well over the next few years. Combine the prospects of lower interest rates and growth for real estate, I think there is quite possible that REITs might outperform the general averages over the next few years.

Certainly for anyone that is nearing retirement REITs should be a part of your portfolio.

-- posted by Oaktoad

Top 15. Jul 2, 1999 7:20 PM

» KirkL - Thanks Paul, you make <b> many good points</b>.

Thanks Paul, you make many good points. I'll have to take a look at some for my fixed portion of portfolio. (in my IRA).

Maybe we can get some mutual fund information to get a fund to invest in them?

-- posted by KirkL