I will almost certainly lift my position by 10% on, or near the open, barring a jump above $7 immediately...the fact that their buyback is still pending...scanned a slew of REIT's and my confidence that this is THE most undervalued, that they have a sizable slug of fresh cash, a long-term discipline, and a solid well-covered yield bodes very well..if the market normalizes this goes easily to 7.50 on improved liquidity (which has been lacking) and if we see a slowdown, the resulting consistent low treasury yields make this attractive.
Bottom line, this has a 10% likely capital gain return along with a current 7.7% yield, actually closer to 9% over the next 13 months, on the nearing 9/11/15 dividend...I believe we'll see 20-25% total return over the next 12 months...sounds strong in either 'good or good' scenario...and I will sleep at night watching it happen.
Do your own DD... my BEST BUY right now, and I usually like high beta.
Tom, I understand your concern...but they cannot control the market price...they will be initiating a significant share repurchase program as soon as they report earnings on Sept 8th, and I'd guess we may be back above 7.30 by then, I picked up 1000's from 6.81-6.95 today and I couldn't be more comfortable with it...I am buying as much as I can handle at these prices...of course NO ONE should be selling at these prices, IMHO.
Good luck and stick with it...we'll see 8 before the end of the year, I hope and believe.
It appears support that I gave IRET in the past was wrong. I will be voting against all board recommendations. IRET has became a very bad investment. Will be watching for bonuses this year as they are given for a job well done? The board may have diferent view that the stoclholders? To late to sell at $6.79.
Like the yield and potential capital appreciation...good to see the upcoming share buyback that will be commencing...if they think buying shares is their best use of capital, I hope they have a good rationale for that...I concur.
I have owned shares in IRET since 2004 & continue to add whenever price is what I feel like a good buy. Right now anything around the low 7's & especially below 7 is a steal. You are buying this for their yield also.......7.20 %......can't go wrong. Just look at their 10 year chart!!
The multi family housing market in Minnesota is pretty strong. They are getting out of their office spaces, which is much weaker than housing. I think they'll do OK going forward from here.
Not the biggest problem. Huge corporate overhead. Inability to operate diversified asset classes. Board incompetence.
IRET has incompetent management. Replace the CEO and CFO with people who know something about real estate. And then replace the entire board. IRET is -30% compared to peer group.\ in 2015.