If Barron's said it I would sell it!!!
That aside the stock is under accumulation, and under book. I have been watching it for some time, kicking myself for not buying after the 9/11 deal. I am taking a small position on earnings report.
section gone? A tout in Barron's current issue
for Correctional Properties Trust (CPV), to wit: "With a dividend yield of 10.3% and built-in FFO growth of 4%-5%, we believe the current valuation is compelling. We are initiating a conservative 12-month price target of $20, which would add over 40% capital appreciation to the dividend return."
(by First Analysis, $14.20, October 12). Well,
you REIT pros, does First Analysis have it right?
In retail I like PNP (a strip center reit), maybe MAC, but it is a mall reit, which is higher risk. In industrial I like Cabot, in apartment I like both ASN and SMT, and in office DRE. I liked, and still own HCP in healthcare, but it is spendy right now. Yeild are great in hotel reits, but they all have alot of risk today. Note, I own all the compnaies I referred to, including this company, SSS.
Take a look at PCL. It is a lumber REIT. In 2000 the dividend was $2.28, of that $.00 was ordinary income, $$1.34 was tax free, $.94 was taxable at 20% capital gains. That makes the 9+% yield comparable to 11+% ordinary income from another source. A recent import surtax on Canadian timber (caused by a finding of "dumping") gives them some extra protection.
For more suggestions try the Motley Fool "Real Estate" message message board, there are many knowledgable posters there, including Reitnut (who runs a REIT fund and is the Ralph who wrote the premier book on REIT investing). Search on author Reitnut and you will learn gobs about safety and patience. However, many of the posters there consider those of us who are interested in higher yields as somewhat unclean. They do have a point to make however. Over all I am down about 10% from August 1 on 23 reits in my portfolio...EOP which is one of the bluest of the blue chips is down 1.3% and yields 6.6% currently so there is something to be said for real quality.
Luck to all