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Centerline Holding Co. Message Board

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  • frank100_20012002 frank100_20012002 Jul 9, 2005 4:45 PM Flag

    Something to think about

    To me, whether CHC is a REIT or isn't a REIT is irrelevant. What's important is that CHC deals with mortgages and has to borrow money in an environment of rising interest rates. That's what's important. If you think being a REIT is important, I'm willing to listen.

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    • Everybody borrows or lends money in an environment of rising or falling interest rates. The fact is that interest rates are as stable and low as they have been in years. CHC has been diversifying their revenue stream and I think that if they issue some of the new stock it will definitely be for those purposes. I do not think that CHC is subject to the same pressures that REITs are subject to. I do think that CHC is subject to government policy and law more than REITs are. Yes, I do think that many think of CHC as a REIT. It is not a REIT and never has been. For a REIT to perform like CHC for their investors, the return must be considerably higher because of the tax advantages of CHC. Your post does make some interesting observations about REITs although most of the post is quoted.