I am so glad someone asked about the 30% plus drop in NAV this year. I thought I was missing something. In order to know if this is a good entry point, I guess I would want to know what specific properties are held and managed. Then I would want to see comparisons with similar properties in each local area. I would want to see the market price trends of those properties, and how those compare. I would want to know the tenants and assess their longevity and quality.
There is a complex of new gorgeous buildings in my area built by a subprime lender . Some is rented out to healthcare providers and some housed the subprime lender that went bankrupt a few months ago. "Let's be careful out there!"
I would probably want to go take a look at enough of the properties to get a real life sense and evaluation as to the quality and location of the properties. I would need to see local vacancy rates, etc. from realtors... I would want to talk with tenants and passers by on the street to get information as to problems and the quality of management. You get the idea. It's a lot of work and can be quite rewarding. Failure to do that is looking for further trouble, even disaster.
I don't have time to really do all that. Perhaps if enough of the members of this forum would discuss their evaluation of a property held by this REIT in their area, we could put together a picture of the likely future of the NAV. If they have property in Tucson I am willing to do a little legwork here. Does someone have a URL listing and hopefully description of RNP's holdings? I have to send this before looking myself.
Hope is not the answer. "Trust but verify!" Getting information and sharing it could be a productive use of this forum for all of us.
.....Everything connected to the financial world by association or not has been beaten down. RNP is no differant. If we look at RNP performance over the past few years, they seem to generate cap gains on top of the monthly distributions which increased this past year. If we take the $1.40 plus the monthly distribution we get an annualized return of 19.4% at the current market price of $19.6! I really do not need to go into the type of detail you require to make an informative decision. Quarterly reports are available as well as an annual that I get. Closed End Funds are not followed by many brokers as they feel they are high risk. The RMK Funds fall into that category but not Cohen & Steers Funds that all have done well this year. I feel RNP will be in the high $20's by year end 2008!