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| Title: | Market Investing |
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| Moderator: | 2155::michaud |
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| Created: | Thu Jan 23 1992 |
| Last Modified: | Thu Jun 05 1997 |
| Last Successful Update: | Fri Jun 06 1997 |
| Number of topics: | 1060 |
| Total number of notes: | 10477 |
909.0. "REIT guidance ?" by NPSS::BENZ (I'm an idiot, and I vote) Sun Aug 27 1995 20:29
Could I persuade anyone to give a few tips about REIT's - what to
expect, what to look for ? I found an earlier note that explains that
an REIT can avoid corporate tax rates if it derives > 75% of its
revenue from real estate and distibutes 95% of the income to
shareholders.
Does this imply that REITs usually offer high dividend returns, but
might be somewhat stagnant on price ? What kinds of PEs are common on
REITs ? Is it common for the stock price to only be a slight premium
over the book value ?
I recently came across a writeup on insider buying at Mid-America
Apartment Communities (MAA), with the columnist noting that the buying
indicates that the dividend is unlikely to drop from the current ~7.6%.
Enough to trigger some research, but I'm unsure of what to look at.
The PE ratio is 33, which sounds high, but maybe that's usual for
REITs? They have completed a number of acquisitions, so the info I've
got on the book value is old (in Dec '94, the stockholders equity was
about 23.32/share - but I don't think the price has moved much since
then, and it's currently 26).
My brokerage sent me a Moody's report, but I also don't understand some
of the data, such as the Liquidity and Debt/Asset Management figures.
Also, I'm unsure of how to find out dividend history - it'd be of some
interest to see what the dividend looked like in Dec '94, since the
earnings per share for '94 were just $0.94, and the dividend is now at
$0.50 for the most recent quarter.
Please - let loose with your comments !
\chuck
| T.R | Title | User | Personal
Name | Date | Lines |
|---|
| 909.1 | Federal Realty Investment Trust | MSBCS::BMORRISON | | Mon Aug 28 1995 14:07 | 17 |
| I am not an expert on REIT's but I won stock in one that has
a dividend payout of about 7.7%
I've had the stock about 6 months now and it is approximately
the same price that I bought it. It might be up by about 1/2.
The Reit is Federal REalty Investment Trust (FRT) on the NYSE.
It is rated on Value line as a timeliness factor of 3 (average).
For the past 6 months it was rated 2 (above average).
The Record Date should be around September 23 if you are interested
in a dividend play.
The REIT invests in Hi Quality Strip Malls.
|
| 909.2 | | NPSS::BENZ | I'm an idiot, and I vote | Mon Aug 28 1995 22:04 | 12 |
| Thanks, Bill. What is "Value line" ? Is the info from Value line
freely available ?
My net access seems to be awry, so I can't lookup the PE for FRT.
Is there anything that prevents someone from buying in just before
dividend payout, the selling off just after ? (Or do the stock prices
usually rise gradually before, and slide gradually after ?) With
discount brokerages at $29/transaction for 1000 shares, that cuts
5.8 cents off the dividend, so that's somewhat of a disincentive.
\chuck
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| 909.3 | | NPSS::BENZ | I'm an idiot, and I vote | Mon Aug 28 1995 22:07 | 4 |
| Oh - I see some info about "Value line" in note 114. Off to the
library.
\chuck
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| 909.4 | Dividends | MSBCS::BMORRISON | | Tue Aug 29 1995 17:01 | 11 |
| If you hang on to the investment for a while, then the dividends add
up.
When I make a dividend play, I take money from a sale of a stock
that I had originally had bought for short term growth and buy
the dividend stock. I will hold on to it for a while and if
it doesn't grow too much and I get tired of it, I sell it after
the record date.
Have fun with the Value Line reports.
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| 909.5 | REIT to consider | ASDG::HORTON | paving the info highway | Wed Sep 06 1995 17:50 | 10 |
| Another REIT to consider is Developers Diversified Realty (NYSE:DDR).
One of my newsletters recommended it at 30 or less.
It used to be privately held, but went public when bank financing
for real estate dried up several years back. The family that
started the company still holds a substantial stake and recently
bought more shares.
DDR is trading around 30, has a dividend payout of about 7 percent.
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