Real Estate Investment Trusts (REITs)

  • The New Investors Playbook: REIT Edition

    By Adem Tahiri - February 28, 2013 | Tickers: CCG, EQR, HCN, RWO

    Take the boom of 2004, mix in the bust of 2007, throw in the Fed hinting at higher mortgage rates, and what do you have? A real estate market that’s downright scary to new investors. But fear not, Fool -- you haven’t missed the rally.

    Introducing: The Real Estate Investors Playbook

    Despite the recent rise for housing related stocks, any "interest rate" driven sell-off in Real Estate is your more »

  • Can This mREIT Out Maneuver The Fed?

    By Waqar Saif - February 1, 2013 | Tickers: AGNC, NLY, ARR, CXS.DL

    In its bid to out-maneuver the Fed’s policy of keeping the rates low, Annaly Capital Management (NYSE: NLY) disclosed its interest in purchasing the remaining stocks of CreXus Investments (NYSE: CXS.DL). CreXus Investments specializes in the acquisition and management of commercial mortgage backed securities. Annaly Capital currently holds around 12.4% of CreXus and the full acquisition would provide risk-adjusted returns to shareholders, while at the same time act more »

  • All Is Well For Annaly Capital

    By Mohsin Saeed - January 31, 2013 | Tickers: NLY, CXS.DL

    Annaly Capital (NYSE: NLY) finally announces agreement to acquire CreXus Investments (NYSE: CXS.DL) amid increasing long-term mortgage rates. Under the agreement, Annaly agreed to hike the November bid price of $12.5 for each share of CreXus to $13 a share. This way Annaly would pay $872 million for the remaining shares of the commercial mortgage REIT. I believe this diversification is a strategic step in the right direction under more »

  • Have Income Investors Returned To Agency mREITs?

    By Mohsin Saeed - January 31, 2013 | Tickers: AGNC, NLY, ARR, CYS, HTS

    Back in December last year, Agency mortgage REITs were trading on deep discounts to their book values Since the beginning of the year 2013, Agency mortgage REITs have appreciated in price greater than the year to date performance of S&P (the broad market). However, most are still trading at discounts to their book values yielding attractive double digit dividends under the ultra low interest rate environment.  

    Year To Date more »

  • Why mREITs Will Fly High In 1Q13

    By Waqar Saif - January 30, 2013 | Tickers: AGNC, NLY, ARR

    Editor's Note: The initial version stated Annaly and American Capital reported earnings, that is incorrect. Motley Fool apologizes for the error. This version has been corrected.

    The US mortgage rates continue to climb higher and higher since the beginning of the year 2013, increasing borrowing cost for potential home owners despite Fed’s commitment to keep home loans affordable.  Home prices are increasing across the US as improving employment more »

  • It Is Too Early to Abandon This Hot Sector

    By Justin Carley - January 22, 2013 | Tickers: AVB, EQR, PSA

    The MSCI U.S. REIT Index finished 2012 with an 18% gain- marking the fourth straight year of outperformance relative to the S&P 500 Index.  Did you also know that this industry has outperformed in 10 of the last 12 years?  The favorable appeal of investing in real assets with consistent dividends has fueled strong demand for REIT equities.  Will outperformance continue in 2013?  Or will the excessive valuations prove to be too great of a headwind?  This article will highlight some bullish as well as bearish scenarios that investors in REITs should consider as the year unfolds.

  • Amazing Benefits for this mRIET

    By Mohsin Saeed - January 16, 2013 | Tickers: AGNC, NLY, ARR

    During a large part of 2012, the spreads that mortgage REITs in general earned were squeezed by the Fed's third round of quantitative easing, also known as QE3. Under QE3, the Fed purchased mortgage-backed securities worth $40 billion every month with an aim to make home borrowing cheaper. This aggressive buying of MBS increased the demand, increasing their prices as a result. Increased prices of these MBS resulted in more »

  • A Defensive Investment with Aggressive Returns

    By Eric Tommarello - December 27, 2012 | Tickers: HCP, HCN, HR, MPW

    “Buy real estate now, they aren’t making any more of it!” While this quip doesn’t always represent an effective investing strategy, real estate is perhaps the world’s most time-tested investment vehicle, regardless of the speculation that it invites.

    That being said, the average investor often ignores real estate, believing it to be too expensive and inaccessible. What they neglect to realize is that real estate investment trusts more »

  • Amid mREIT Headaches, This Company Is Confident

    By Mohsin Saeed - December 26, 2012 | Tickers: AGNC, NLY, ARR

    Investment Strategy

    Overall MBS prepayment speeds have declined during the month of November. However, prepayment speeds on higher coupon securities have increased, which are causing headaches for Annaly Capital (NYSE: NLY). Compared to American Capital Agency (NASDAQ: AGNC) and Armour Residential (NYSE: ARR), Annaly Capital own securities with higher coupons. Among the three REITs, Annaly also has the highest prepayment speed for its MBS portfolio. Annaly was also forced to more »

  • QE4 & the Mortgage REIT for 2013

    By Mohsin Saeed - December 24, 2012 | Tickers: AGNC, NLY, ARR-A, ARR, BAC, PMT, WFC

    QE4 is here to replace Operation Twist and Ben Bernanke has promised an extended easing at a rate of $85 billion a month. The easing is here to stay until the US unemployment rate, which is currently at 7.7%, falls below 6.5%. The new buying program will be purely of Treasury purchases, unlike QE3.

    It is widely anticipated that the new easing will add more accommodation to the more »

  • Following the CEO Sell of This Industrial REIT

    By Anh HOANG - December 4, 2012 | Tickers: DRE

    A stock, which has been paying consistent dividends over time, with a current high yield of 4.4%, has a lower “Wall Street risk - beta" than the general market, of 0.96x.  It sounds interesting for income investors, does it? However, the stock is nearly at its 52-week high and the CEO has been selling. It is DCT Industrial Trust (NYSE:DCT). The CEO, President and Director Philip Hawkins sold more »

  • Investing in Hurricane Sandy

    By Michael Modica - November 2, 2012

    As I sit here in my New Jersey home the Friday after what has seemed to be the most severe hurricane to sweep the northeast for quite some time, I can hardly think about what effects she has had on the lives of those who crossed her path.  Makes me think of the small businesses she destroyed, homes she has flattened and roads she obliterated.

    But than I began to more »

  • 3 Large Cap Stocks with High Dividend Yields

    By Anh HOANG - October 22, 2012 | Tickers: AGNC, ORAN, VIP

    In the search for investment opportunities, screening is a very important start. Garbage in, garbage out! Investors need to choose a good screener and select screening criteria in a smart way to detect potential investments. Today, I ran a screen to find good companies for income investors in Motley Fool Caps. Income investors need to invest in companies that are paying a  good dividend yield, so the current dividend yield more »

  • Consider Storing This Company in Your Portfolio

    By Michael Carter - August 28, 2012 | Tickers: NLY, PSA

    You’ve been given the task of creating your own dream stock.  You want your ideal stock to have the following characteristics:

    Dividend

    Greater than 3% Annually

    Market Cap

    Greater than $10 billion

    Total Annual Returns of Last 10 Years

    Greater than 50% Annually

     

    You also want this stock’s share price to still be in growth mode and rising long-term, its annual net income to common shares to be more »

  • Why is Uncle Sam so Strict on Dear Little Fannie Mae and Freddie Mac?

    By Ron Chatterjee - August 25, 2012 | Tickers: BAC, CBG, C, JPM, WFC

    You might have already heard that the US Treasury has already made crucial tweaks in the bailout program of Freddie Mac (FMCC.OB) and Fannie Mae (FNMA.OB), two GSEs that played huge roles in leading the US economy into the dreaded housing bubble in 2007, buying almost 50% of the mortgage-related securities from the banking and the non-banking institutions.

    But why would the government take such a drastic decision more »

  • A Heath Care Company Hits a Growth Spurt

    By Matthew DiLallo - August 13, 2012 | Tickers: CYH, HCN, HLS, MPW, VTR

    No matter where you stand on the great heath care debate, one thing is sure -- it is going to keep costing us a lot of money to stay healthy.  Compound that with us getting older, heavier and, well, there just seems to always be more of us, and it’s a recipe for profitable industry growth.  So when things ache or pieces break, we’ll continue to go to that more »

  • A Tale of Three Midwestern REITs

    By Jonathan Lim - August 8, 2012 | Tickers: GRT, SPG, TCO

    Glimcher Realty Trust (NYSE: GRT) owns 21 malls and shopping centers outright and six through joint ventures, with eight in Ohio and the remainder spread across 14 other states on both coasts. Its diverse holdings include tourist destinations such as the Jersey Gardens outlet mall in Elizabeth, N.J. and luxury malls such as Westshore Mall in Tampa, Fla., but primarily consist of regional malls that cater to Middle America more »

  • Nothing Exciting to Report from Plum Creek

    By Matthew DiLallo - August 3, 2012 | Tickers: BAM, PCL, PCH, RYN, WY

    You have to admit; there truly are few things more boring than an investment in timber. Plant a tree, wait, wait some more, send the kids off to college, wait again, harvest the tree and then repeat the cycle. While it’s not exactly that simple, it is hard to find much to be excited about.

    So when Plum Creek (NYSE: PCL) reported earnings the other day, I had to more »

  • Is AvalonBay Communities the Once and Future King of REITs?

    By Jonathan Lim - July 30, 2012 | Tickers: AVB, CPT, EQR

    At today’s lofty valuation, AvalonBay Communities (NYSE: AVB) is priced to reflect its reputation as a safe haven amid turbulent times. But will holding this REIT have the same rejuvenating effect on investors’ portfolios as the mythical island of Avalon did on a wounded King Arthur?

  • A Real Estate Spin-Off to Watch

    By Matthew DiLallo - July 25, 2012 | Tickers: BAM, BIP, BPO, GGP, RSE

    Traditionally Real Estate Investment Trusts (REITs) have always been the easiest way for individual investors to gain access to this asset class which paid fairly decent dividends.  Most REITs are concentrated on one niche within real estate and for the most part are concentrated on only owning real estate domestically.  That is about to change in a big way.

    At some point during the second half of this year Brookfield more »

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