We run MNRTA and UMH. Have for thirty years. Believe in REITS but not these reits you cant read the financials. A portfolio of properties and a long term outlook is what we like.We are investing in other reits because its a lot cheaper than buying properties. In 1988 we took mnrta out of overvalued equities and into mortgages. In1991 we went back into equities.
Had a look at those two REITS: interesting, especially the one with the 19% return on equity.
Hey, but what do you think about Annaly? What happens to them if we get another sharp liquidity contraction? (How strong are they relative to other mortgage REITS?)
Found another interesting wrinkle on the income hunt. The Liberty All Star Fund (USA) is now yielding something like 10.88. Right now, it is selling at larger-than-usual discount to its NAV. But, get this: a 10% payout is a matter of policy. If they don't make it for the year on NAV, they pay as a "return of capital," reducing your cost basis in the shares.
I looked through a report from late last year. They have a good portfolio, similar to the S&P but not cap weighted. So, its probably overvalued but not so grossly as the index.
Kind of an interesting idea--a way to take part in all this common stock craziness, while "hedged" by an above-average yield.
I believe that the five-year total return has been around 19%. They periodically offer "warrants" for discounted share purchase that have given quite a kick to that average if exercised.
Have you looked at Pilgrim Prime Rate Trust (PPR)? It's a closed end fund that holds a portfolio of senior secured corporate loan participations.
Currently yields a bit over 8% at present price which is a slight premium to net asset value. It pays a monthly cash dividend. Have owned this fund for about four years now and price is fairly stable except for last fall during the credit crunch when price was hammered (due to guilt by association, I guess)and dropped as low as 8 1/2. Bought some then that now yields about 10%. Risk of the fund is credit risk of the individual companies and general economic risk. However, the loans are senior secured instruments which mitigates some of the risks involved. Also, fund holds about 120 loans which allows for fair diversification. Cash dividends are declared and paid monthly - which is nice. Worth a look in the hunt for yield.