WHAT ARE THE HEALTHIEST REITS OUT THERE -- AND IS NOW THE TIME TO INVEST?
Most of the REITS I have looked at have half-occupied properties and are struggling through the slowdown. Any suggestions on healthy REITS in a growth trend that are paying a decent dividend, which they appear able to sustain? Basically, I am looking for REITS with a strong balance sheet that continue to appreciate and pay reliable dividends. Kindly give details and the reasons for your assumptions. Much thanks!
Answers
246 points
engcomp answered 2 months ago …
In the first quarter of 2008, REITs posted a 0.8% total return, at a time when the S&P 500 index fell 9.4%. That seems to me a good investment.
Here is a list of the best, published by S&P...
Alexandria ARE
AMB Property AMB
Annaly Capital Management NLY
Developers Diversified Realty DDR
Essex Property ESS
Federal Realty FRT
First Industrial Realty FR
General Growth Properties GGP
Macerich MAC
Mack-Cali CLI
National Retail Properties NNN
ProLogis PLD
PS Business Parks PSB
Regency Centers REG
Simon Property Group SPG
Taubman Centers TCO
Weingarten Realty WRI
Good luck
2547 points
Oldman answered 2 months ago …
EngComp's answer above is a great one for COMMERCIAL Reits.
Another group that did well, and has reasonable prospects are the HealthCare Property group, such as NHP, HCP, HRP, SNH...but they're pricey now. (mostly nursing homes and continuing care centers in this subgroup...the one's that into medical offices and clinicsm haven;t done so well)roup...and aren't subject to a special tax by Canada after Jan 2011. Another group, specialty mezzanine finance REITS, ACAS, & ARCC are now bargains, while AINV and others have depressed prices, but decent prospects and high yields.
Finally, the timber companies, structured like REITs, such as Deltic, Plum Creek and Weyerhauser have spiked recently, and I'd wait for the pits of the slowdown to start wih them, although their dividends are safe...their prices are up about 20% in the past month.
Annaly has increase its quarterly payout for some time & is one of a number of newsletters' "Top Picks", where as Weingarten is a very conservative choice.
Another group, that may be "hot" is the storage: Public Storage & Sovran Self-Storage (SSS), taking advantage of the need for defaulters' and emergency refugees' to store belongings.
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