I looked back and found that what we hoped for a few years ago was not a 9% cap, as I just posted, but more like a 7.5% cap(which at the time was what some of the other apartment REITs were yielding). Anyway, my point remains unchanged: the only thing that has really changed here is investor/market sentiment - the fundamentals and assets are about the same, people are just paying up for them - sometimes referred to as reaching for yield.
A few years ago we posted here that, wow, maybe the market would come to 'cap' MAA's dividend at a 9% rate, which would have put the stock over 30. That was the goal and the dream. Finally made it. Now, the market caps the same dividend at 4.5%. Rates were as low than as now. Pretty much everything is unchanged - same assets, same management, same outlook. Only difference is investors sentiment. My point? Market sentiment cycles up and down. It could cycle back down. When takeovers show up in an industry it usually indicates a peak not a trough. I mean, where were all these smart buyers a few years ago, when they could have bought these same assets at half current prices? That ain't smart money - that's just hot money.
Great management. Love 'em. But everything has a price and some stocks are non-cyclical growth companies, where the revenues and unit-growth is always increasing (like Coke) and you probably do well holding them forever; REITs are not in that category - they are primarily cyclical, income-producing fixed assets, priced based on current interest rates, cap rates, etc.
Funny you didn't post your bullish sentiments back when you were a buyer but come here now, after the move, to tell us all about it.
Again, timing is what day traders and momentum late-to-the-party gamblers attempt. Me, I try to stick to the standard buy low, sell high basics. I think you would agree with me that it is now at the 'High" juncture. So I have no regrets, since there have been other places to Buy Low, where risk/reward is not upside down(like here).
Again, the yield here is less than 6 month CDs. Sure, in 6 months the 4.5% might not be available, but the return of your principal is guaranteed. In 6 months the price of this stock might be down 25% ++. Don't know about you, but the former absolutely sounds like lower risk to me.
If there was any upside left, it might be worth it. You see upside (other than Greater Fools) ? - Please show me what I am missing.