That is what I asked myself in Dec 99 and reits was the answer! I found I could buy into nursing homes,storage facilities, lending co's,office and apartments. Hiw was one of my top pick's and I have added to the prb. Most can be called @25 and if they get over that I sell!!
This reit is in the right part of the country and it has the track record!! Perfered reit's have made my retirement better than I ever dreamed and I don't see it changing because of deregultion or scandal!!
...I asked myself...and REIT's was the answer!
I agree almost 100%. My top pick was RAS.
I also diversified with Canadain oil & gas trust(NOT U S O&G);ERF and NCN were the first to list in USA. PVX(my top pick) came next, followed just recently with PWI and the last was PGH. I also expect a company named Acclaim energy will be next(currently it trades on the 'pinksheet'). All of these O&G trust trade on the Canadain exchange. On the messege boards: Need High, and JDcarter you will find most helpful.
Well anyway I own HIW, RAS, and CMO in my REIT portfolio-I own PVX, ERF, and PWI in my O&G portfolio. By the way the O&G trust pay their dividends monthly.
AAHhhh HAaa ha all the way to what?
I am in the camp that prefers a dividend cut and use the money to buy in common stock paying a yield above normalized returns on any present ppty opportunities.
However, to the poster who suggests that these ppty sales are somehow core ppties in core markets that would not be correct.
In addition, when you get this unusual environmt where passive investors are willing to payup for a fully leased bldg (Caterpiller for example) you definitely sell it for top dollar and redeploy your assets.
We are in this historical anomoly where institutional and other investors are paying too much for triple net high quality fully leased ppties. History has shown that the overall returns in the beginning look very nice but if interest rates go up these investors are not going to be happy with low fixed returns on long term leases of these fully leased up ppties. My prediction is many of these will come back to market and the public reits will repurchase at handsome discounts to what they were sold for during this anomoly. I'm not saying HIW will get back what it sold in this manner but it is a general proposition I believe will take place.
Any long term investor is not happy seeing mgmt being willing to put $20M into shareholder pockets that represents nothing to shareholders over the long term.
The projected range of dividend to affo as per the cc was 107% best case to 117% worst case. Given the lag time between employment growth and consumption of existing office space (about 18 months) I would prefer mgmt cut the dividend or make it a function of quarterly affo qtr by qtr. The unsophisticated reit investor will bail but perhaps the more sophisticated investors will accept for the good of the long term values in the HIW portfolio.
Especially when as noted by other posters HIW is in markets where the bubble in telecom and tech resulted in the big buildout of parts of the SEast US that it will take longer to absorb space and when space better absorbed construction costs are so much lower that barriers to entry are so much lower.
JTP has a diverse portfolio of preferred shares, yields 8.32, pays monthly dividends. The below link will give you some info. Also check morningstar.com
If you are looking for a prudent spec, I think RPM represents a real opportunity. They make chemical coatings and other things that most people know: DAP, Rustolium, Day-glow and many more. It sells for 9.6 or so, 5.5% div, with a p/e of 9. It has increased dividends each year for the last umpteen years. The low price is because it got painted, or should I say coated, by the asbestos brush. S&P says the asbestos claims are moderate and shouldn't present a problem. It gives RPM a 4 star accumulate rating. There are two bills that should pass this year: elimination of double tax. on div, and an asbestos bill that helps companies that have pending asbestos claims. Given the passage of the two bills and a recovering economy and you will have an easy 50% gain or more. Good investing to all.
and don't worry about the dividends, except as a measure of whether you're overpaying. investing in the common or cv pfd shares of reits is done for the income coupled with the upside or at least the inflation protection of real estate. reits should be looked at not at their yield but at their mult of ffo and affo; if anything, a well-run reits may distribute very little when it can shelter the cash flow with current or carryover losses.
nevertheless, a reit is only as good as its undrlying assets, its debt structure, and its management. if there is a deficiency in any of these it becomes a speculation rather than an investment
This cannot be possible. Two posters who appear happy with their lives and having positive outlooks. Don't you two know the world is coming to an end? We will never be the country we once were prior to the great stock bubble? How dare you spread your happiness about having better retirement income prospects investing in reits and/or prfd stocks. How dare you?
I'm kidding of course. Its good to see some happy campers out there generating income to better their futures.