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REIT's Cooling Off?
Old 10-01-2005, 06:02 PM   #1
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REIT's Cooling Off?

All you REIT investors out there...is it time to take some money off the table?

Real Estate Investment Trusts Cooling Off

By ELLEN SIMON, AP Business Writer

"After a long hot run, real estate investment trusts have cooled off in the last few weeks. Which raises the question: Should investors cash out and take their winnings? Or should they stay in the game?"

http://news.yahoo.com/s/ap/20051001/...ge/wall___main
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Re: REIT's Cooling Off?
Old 10-01-2005, 06:52 PM   #2
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Re: REIT's Cooling Off?

REWahoo!

How about the timber REIT's--provide a commodity play and above market yield. Pension funds like timber a lot and from my days in the industry, you are assured a long term 4-6% real return in the asset base--quality of timber base important to what you get.
Interested in your read on two timber companies converting to REITs--Longview Fiber (lfb) and Potlatch (pch). Both will have to issue a special dividend to basically distribute retain earnings. It will be a taxable distribution but in a retirement account, payout will substantially cut the basis and providing a lasting kick to regular dividend yield.
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Re: REIT's Cooling Off?
Old 10-01-2005, 07:13 PM   #3
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Re: REIT's Cooling Off?

nwsteve,

I'm not a REIT investor, just saw the article and though those of you who are might be interested. I don't have anything against REIT's, but didn't get into them before they took off and think it might be a little late for me to try to get on board now.



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Re: REIT's Cooling Off?
Old 10-01-2005, 08:39 PM   #4
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Re: REIT's Cooling Off?

Cash out
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Re: REIT's Cooling Off?
Old 10-01-2005, 08:48 PM   #5
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Re: REIT's Cooling Off?

Sold down most of my REIT exposure a few months ago.
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Re: REIT's Cooling Off?
Old 10-02-2005, 09:12 AM   #6
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Re: REIT's Cooling Off?

I'm still in, but t'is going down.... I am always slow to make a move, but. . .
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Re: REIT's Cooling Off?
Old 10-02-2005, 09:35 AM   #7
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Re: REIT's Cooling Off?

The opportunity may be in shorting REITs.
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Re: REIT's Cooling Off?
Old 10-02-2005, 11:45 AM   #8
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Re: REIT's Cooling Off?

I've no intention of reducing or selling off.

Unlike NASDAQ internet stocks, REITS are based on real properties with real incomes that arent likely to disappear, evaporate or go away. They usually arent based on high flying coastline single family homes. In the event a property becomes unprofitable, its usually sold off.

I wouldnt be surprised to see a small correction. Maybe 10%. Maybe 15%. I also wouldnt be surprised to see them continue to rise at double digit numbers.

Still an asset class thats negatively correlated to a lot of other asset classes. Expensive, true. So are a lot of other asset classes.

I'll keep owning it for the same reasons I bought it, although its probably worth noting that this holding is in my IRA and wont be tapped for 15-20 years.
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