Mortgage companies and REITs

Question

I thought it would be prudent to list a few of these companies. If you buy right and hold for longer term I imagine you could make NICE appreciation and nice yields.

Keep in mind that of this list a few might not make it, while a few will carry the portfolio. Also keep in mind that the yields you see might not be sustained in a down real estate market. If one was wanting to make a REIT basket, these names would be a good place to start researching-

REM
CFC
IMB
RWT
NLY
TMA
FBR
NCT
TMA
ACC
AIV
ELS
EQR
HCM (HUGE risk, but fat dividend if holds)
HME
UDR
UHM

Also, one might venture into REITs that are not residential like-

BDN
OFC
CLI
MPG
MSW
RPB

The market is spitting out everything mortgage and REIT related, even ones that have nothing to do with the residential housing sector..you snag some REITs which have zippo to do with the areas in question you might just hit a gold mine on a yield basis...

Inversely if you wanted to go against these guys there are MANY ETFs for REITS and the like which could either be shorted or some might have options on them..

wallstreetcappers · Answer

I thought it would be prudent to list a few of these companies. If you buy right and hold for longer term I imagine you could make NICE appreciation and nice yields.

Keep in mind that of this list a few might not make it, while a few will carry the portfolio. Also keep in mind that the yields you see might not be sustained in a down real estate market. If one was wanting to make a REIT basket, these names would be a good place to start researching-

REM
CFC
IMB
RWT
NLY
TMA
FBR
NCT
TMA
ACC
AIV
ELS
EQR
HCM (HUGE risk, but fat dividend if holds)
HME
UDR
UHM

Also, one might venture into REITs that are not residential like-

BDN
OFC
CLI
MPG
MSW
RPB

The market is spitting out everything mortgage and REIT related, even ones that have nothing to do with the residential housing sector..you snag some REITs which have zippo to do with the areas in question you might just hit a gold mine on a yield basis...

Inversely if you wanted to go against these guys there are MANY ETFs for REITS and the like which could either be shorted or some might have options on them..

Fish Naked · Answer

What&#x27;s your opinion on RAS? Heard about them from our financial planner when it was at 22 and yeilding around 14%...Glad that I didn&#x27;t pull the trigger then, but am considering taking a position now.

wallstreetcappers · Answer

They are a mortgage REIT..Got nailed and bounced, lets see if the low is re-tested.IMO they are a 60/40 as to not making it with 60% chance they DO make it.Forget the dividend, they are going to be losing money..you buy because if they make it you could hit a 50-150% return longer term..and if the dividend continues or comes back you will do quite well..forget the current yield, it isnt happening.

Gunners · Answer

I am in Commercial Real Estate.  I do commercial mortgage debt placement.  Basically a commercial Mortgage Broker, but i don&#x27;t necessarily like to be classified as a mortgage broker because i don&#x27;t like being associated with those dirty residential brokers.  I also do a lot of equity placement (joint ventures, mezzanine, participating structures, etc..) I know a good bit about the commercial REITs.  If I had to pick companies that I have confidence in, here are a few that i&#x27;d think about owning.  i don&#x27;t know much about their stocks, however, so do your own Due Diligence.&#xD;&#xA; &#xD;&#xA;Vornado (VNO) is in all property types and they are huge and smart.  they will never go under.&#xD;&#xA; &#xD;&#xA;Highwoods (HIW) has been a takeover target for a long time.  it will eventually go.  the top guy or two have been resisting, but they are old and won&#x27;t last forever.  the rest of the board has been supportive of the takeover for a while.  there have been many unsolicited bids to take this over.  I have been near to this, as one of my client&#x27;s made an unsolicited bid about 2 years ago.&#xD;&#xA; &#xD;&#xA;SL Green (SLG) is another hoss of a REIT.  they are big on office and own a lot of NYC properties.  they also just bought out another large and successful REIT (Reckson) and will continue to grow.  Their stock has been hit recently as has their mortgage arm (Gramercy Capital, GKK)&#xD;&#xA; &#xD;&#xA;Forest City (FCE.A) is Bruce Ratner&#x27;s REIT (owner of Nets).  they have huge holdings and great management.  very well respected.&#xD;&#xA; &#xD;&#xA;Boston Properties (BXP) is another very well respected REIT&#xD;&#xA; &#xD;&#xA;American Financial Realty Trust (AFR) specializes in owning real estate that is occupied by financial tenants (wachovia and BofA being their two largest tenants, i believe).  they own 939 bank branches and 424 office buildings.  that is a lot of real estate backed by very very good credit.

Gunners · Answer

this is from Goldman Sachs:&#xD;&#xA; &#xD;&#xA;&#xD;&#xA;September 12, 2007 Americas: Real Estate: REITs Takeaways from our Retail REIT Rotisserie Dinner &#xD;&#xA;Industry context We recently held our Retail REIT Rotisserie Dinner in New York City, featuring management from six of the nation&#x2019;s leading REITs, including Simon Property Group (SPG), Vornado Realty Trust (VNO), Kimco Realty Trust (KIM), Developers Diversified Realty (DDR), Federal Realty Investment Trust (FRT), and Tanger Factory Outlet Centers (SKT). We note several key takeaways from our discussions with management: (1) Cap rates for class-A properties in high-barrier-to-entry markets could experience modest increases as the re-pricing of risk increasingly impacts higher quality real estate; (2) credit markets volatility could persist for some time, dampening institutional demand for real estate and negatively impacting REITs&#x2019; fund management businesses; (3) despite the credit crunch, retailers have taken a longer-term view of the market and have yet to push back their store expansion plans; (4) given its defensive attributes, retail real estate should outperform other property types should the economic environment deteriorate; and (5) the credit markets dislocation has increased the importance of internal growth as a contributor to FFO growth. &#xD;&#xA;Source of opportunity Given the growing potential for an economic slowdown, we believe retail real estate makes sense for REIT investors given its defensive attributes (long average lease terms, predictable income streams, and investment grade tenants). &#xD;&#xA;Catalyst We believe an increase in transactional activity could serve as a catalyst to the shares. In our view, any indication that institutional demand for retail real estate remains strong could push retail REIT shares upwards. In particular, we believe the market could respond positively if the Pyramid portfolio trades at a lower-than-expected cap rate. &#xD;&#xA;Risks These include development risk, a marked decline in consumer sentiment, and a slowdown in tenant store openings. &#xD;&#xA;Best buy idea Simon Property Group (SPG); Vornado Realty (VNO); Kimco Realty (KIM)

wizdumb2003 · Answer

Thanks for the list and your research.

wizdumb2003 · Answer

Thinking perhaps Banks, S and Ls, and other financial institutions are hiring real estate agents PERMANENTLY just to get rid of their REITS.  Which companies are doing it?  Any insider care to share?

Gunners · Answer

here&#x27;s another goldman report:&#xD;&#xA; &#xD;&#xA;&#xD;&#xA;October 2, 2007 United States: Real Estate: REITs Revisiting key investment ideas; Retail REITs looking more attractive &#xD;&#xA;Industry context In this report, we review our key investment themes and also look at the performance of retail REITs during the last US recession in 2001 and their subsequent period of relative outperformance versus the other major property types, such as office, apartment and industrial. Since the start of the year, we have favored global Industrial and NYC Office names within our coverage universe and select retail REITs. However, with the risk of a recession in the US higher today versus only a few months ago, we note that retail REITs could outperform over the near term as investors wait for a more definitive outlook on broader economic trends. We remind investors that we continue to be most cautious on the apartment REITs, given the over supply of single-family homes/condos, current valuations and slower expected job growth next year. We remain Neutral on REITs. &#xD;&#xA;Source of opportunity We continue to recommend several names within the global Industrial (PLD) and NYC Office segments (BXP, SLG), but also highlight several high quality retail REITs (KIM, SPG). We believe investors should continue to focus on best in class companies within each property sector with strong balance sheets, portfolios in infill markets with embedded rent growth and modest exposure to development (given higher risks). &#xD;&#xA;Catalyst REITs are defensive in nature owing to their long-average lease terms, high quality tenant bases, and still reasonable dividend yields. As such, we believe investors could favor the stocks in the event of a US economic slowdown, similar to the period after the last recession in 2001. &#xD;&#xA;Risks Risks for REITs include higher interest rates, higher cap rates and a slowdown in commercial real estate trends (peaking fundamentals). &#xD;&#xA;Best Buy idea ProLogis, Boston Properties, and Simon Property. Best Sell idea Mack Cali, Maguire Properties, and Post Properties.

wizdumb2003 · Answer

There always exists $$ improvement.

Mortgage companies and REITs

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