Sector Watch: Gurus Active on REITs at 52-Week Low

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According to the GuruFocus Value Screen for finding 52-Week Lows, the real estate investment trusts or REITs sector shows 266 companies out of 475 are on a 52-week low. The sector low ratio is 0.56.

Here’s a look at three REITs, all of them more than 30% off a 52-week high, and screened for billionaire stakeholders as of the third quarter of 2013.

Industry Sector: Real Estate Investment Trusts

Highlight: CBL & Associates Properties Inc. (CBL)

The current share price is $18.17, or 32.6% off the 52-week high of $26.95.

Down 13% over 12 months, CBL has a market cap of $3.09 billion, and trades with a P/B of 2.10. The dividend yield is 5.00%.

Organized in 1993, CBL & Associates Properties Inc. is a self-managed, self-administered, fully-integrated real estate investment trust or REIT that is engaged in the ownership, development, acquisition, leasing, management and operation of regional shopping malls, open-air centers, community centers and office properties. The company is the 100% owner of two qualified REIT subsidiaries, CBL Holdings I Inc. and CBL Holdings II Inc. CBL Holdings I Inc. is the sole general partner of the operating partnership.

Guru Action: As of Sept. 30, 2013, the top guru owner is Chris Davis who reduced his position by 12.05%, selling 128,871 shares at an average price of $21.07 for a loss of 13.8%. Davis has averaged a gain of 142% on 6,693,945 shares at an average price of $7.52 per share. He has averaged a gain of 28% on 5,753,213 shares at an average price of $14.19 per share.

His current shares of 940,732 represent 0.55% of shares outstanding.

Track share pricing, revenue and net income:

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Highlight: Realty Income Corporation (O)

The current O share price is $38.13, or 31.3% off the 52-week high of $55.48.

Down 6% over 12 months, Realty Income has a market cap of $7.86 billion, and trades with a P/B of 1.70. The dividend yield is 5.60%.

Realty Income Corporation is an equity real estate investment trust, or REIT. Its main business objective is to generate dependable monthly cash distributions from a consistent and predictable level of funds from operations, or FFO per share. At March 31, 2012, the company owned 2,631 properties, located in 49 states, containing approximately 27.3 million leasable square feet, along with three properties owned by its wholly-owned taxable REIT subsidiary, Crest Net Lease Inc. The company typically acquires retail store properties under long-term leases with retail chain store operators. The company portfolio management focus includes: contractual rent increases on existing leases; rent increases at the termination of existing leases when market conditions permit; and the active management of its property portfolio, including re-leasing of vacant properties and selective sales of properties.

Guru Action: As of Sept. 30, 2013, the top guru owner is Jim Simons who increased his position by 26.97%, buying 281,000 shares at an average price of $41.84 for a loss of 8.9%. He has averaged a loss of 18% on 1,323,069 shares at an average price of $46.43 per share.

Check out three guru stakeholders and insider trading.

Track share pricing, revenue and net income:

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Highlight: Ventas Inc.

The current share price is $57.13, or 32.1% off the 52-week high of $84.11.

Down 11% over 12 months, Ventas Inc. has a market cap of $16.8 billion, and trades with a P/B of 1.90.

Ventas Inc. is a real estate investment trust with a portfolio of seniors housing and healthcare properties in the United States and Canada. The company is engaged in triple-net leased properties, senior living operations and medical office building operations. The triple-net leased properties segment consists of acquiring and owning seniors housing and healthcare properties in the United States and leasing those properties to healthcare operating companies under triple-net or absolute-net leases that require the tenants to pay all property-related expenses. The senior living operations segment primarily consists of investments in seniors housing communities located in the United States and Canada for which the company engages independent third parties, such as Atria and Sunrise, to manage the operations. Ventas Inc. competes in the acquisition, leasing and financing of seniors housing and healthcare properties with publicly traded, private and non-listed healthcare REITs, real estate partnerships, healthcare providers, healthcare lenders and other investors.

Guru Action: As of Sept. 30, 2013, the top guru owner is Chris Davis who increased his position by 19.85%, buying 76,075 shares at an average price of $64.97 for a loss of 12.1%.

He gained an average of 38% on 2,384,307 shares bought at an average price of $41.52 per share. Selling, he gained an average of 20% on 6,488,245 shares at an average price of $47.53 per share.

Track share pricing, revenue and net income:

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Here’s more guru and insider trading.

GuruFocus Real Time Picks reports the stock purchases and sales that Gurus have made within the prior 2 weeks. The report time lag can be as short as 2 days after the date of the transaction. This feature is for Premium Members only.

Check out the GuruFocus special feature 52-week low screener to find the stocks hitting new lows but are still held by top investor Gurus and Insiders.

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