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Vornado Realty Trust Message Board

  • chazcpa720 chazcpa720 Jul 25, 2005 2:55 PM Flag

    What a PUNY Yield !!!


    I thought REITs were income stocks that people bought mainly for income, and a little bit of growth.

    Now they buy them mainly for growth, and a little bit of income. So there's no longer any difference between a REIT and a growth stock.

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    • just wait for the dividend bump. reits have to pay out a high pctge of "earnings".

      the level of earnings is not anticipated in the dividend payments in the early quarters of the year. the dividend is harvested when the earnings are really really visible

      in general you dont get the growth in a reit's value unless there are good earnings. the good earnings support higher net asset values (one determinant of value) and higher dividends (the other dominant determinate of value)

      the fact that (on a selective basis) reit values are increasing tells us that some of the reits are doing well

      patience...we will soon see the dividend that is supporting the share value increase at vno

      • 1 Reply to esiinc1
      • With all due respect Merrill Lynch and other analyst firms have projected ffo and the anticipated dividend increase so fully priced in the shares.

        I have been one who believes that the yields are insufficient to cover for the risks of ownership of reits. However, lower interest rates have put off or deferred the risks of ownership for many reits.... there will be retailer BKs as interest rates rise and retail reits should adjust. In offices however we have reached this inflection point where ffo is going to go up as vacant space is taken and no new space to speak of is being built in most major markets.....

        I am surprised with the ten year near 4.25% that we haven't seen any adjustment in reit pricing to allign with the increase in the ten year rate (i.e. drop so that the yield is closer in line with the ten year).....

102.14-0.10(-0.10%)Aug 24 4:02 PMEDT