If Sears goes BK, it will hurt LXP. Sears the company is Sears and Kmart stores. But I have to doubt it is a sudden worry about something like this that is hurting the stock. More maybe their leverage. Not sure why it has fallen as it has either.
I am considering taking an initial position in 5 equity reits. (corr, good, irt, lxp and wsr) they would provide a blended dividend yield of about 8%. Recent articles by analysts are generally positive. The dividend is covered and to me the future looks positive. So when I get green lights flashing I like to seek additional opinions. What do you guys, with the actual money invested, think? Is it time or still too early. These 5 are down about 20% from there 52 week highs. I am looking for consistent, sustainable and hopefully rising dividend income inside of my IRA.. These are the 5 names I decided to start accumulating with. My plan is to invest 10 to 15K every other month for about 2 or 3 years, reinvest the dividend and let it ride. At some point when interest rates decide what they are going to do and I can get closer to 9% on closed end funds of preferred stock I will switch the ongoing investment from equity reits to preferred funds. Of course I will have to expand the universe of equity reits as I want to keep initial investment at less than 15,000 plus reinvested dividends. Comments are welcome. TIA.
It's time to sell! A look at the financials says so. It has a payout ratio of over 130%. It has massive debt and with interest rates on the rise, that debt load is harder to carry and dividends are harder to pay. Over 2 billion in debt to payoff. Do you know how much 2 billions is??
I agree, this is a reasonable entry point. I have had a fair position in lxp-c for the past several years, and I have been accumulating commons at these levels --I think it may even go to 8's, which I will buy more. It is going to be choppy, but at the end I think we will be reasonably rewarded.
I bought several weeks ago 20,000 and am holding ......maybe a trade?
The stock was destroyed over the last several months.
In at 9.27. ..............watched it fall to 8.95 and almost sold in panic but held my position.I have followed the company since 1995. I am stultified as to the low price here.
Even if rates gradually rise....... how is 7.5% bad?
I can not get that return anywhere with this low level of perceived risk..unless there is risk that I am unaware of..market crash, malfeasance, Director and officer pilfering, unforeseen event taking place now that is a secret, bad tenants not renewing current leases? Who knows other than the Directors and Officers?
As a CPA I see banks throwing their money at commercial real estate today.......it is scary.
This REIT should be going up in sympathy with current bank lending practices.
I do not understand what the hell has happened here!
Now that I'm retired I've been looking to move money to income stocks, never owned a REIT, but I now own this. Hopefully Thursday was the bottom.
His article just posted a few hrs ago on Barrons. They sure are pumping this one. I guess they are pumping because the pumpers are already in it. Looks like they may end up being the dumb money after all if rates keeps rising.
This will be a buy down another 15% after the big correction. Correction coming, get dry powder, then buy when appropriate. None of the real estate REITS have done well. It can;t be all bad for all. Buy soon.