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  • Is This REIT Still a Buy ?

    By Adnan Khan - February 5, 2013 | Tickers: AVB, EQR, UDR

    UDR (NYSE: UDR) operates as a self administered real estate investment trust with a market cap of $5.8 billion and invests in multifamily apartment communities located in high barrier-to-entry markets throughout the United States. The company has an increasing presence in the Northeastern regions of the US. For the purpose of reporting the company is divided into segments; Same Communities and Non-Mature Communities. Properties within the Same Communities need more »

  • 3 More Reasons to Buy Citi

    By Adnan Khan - February 4, 2013 | Tickers: BAC, C, JPM, NES.DL, WFC

    At the end of the first week of January this year, the Basel committee announced relaxation in the conditions governing the Liquidity Coverage Ratio of the banks. The Liquidity Coverage Ratio is designed to ensure that financial institutions have the necessary assets on hand to meet short-term obligations. Usually, banks are required to hold assets that are highly liquid in nature like Treasury bonds, at least equal to the net more »

  • This mREIT Disappoints Analysts

    By Adnan Khan - February 4, 2013 | Tickers: NLY, CMO, CYS

    Capstead Mortgage (NYSE: CMO) disappointed analysts in general when it reported its results for the fourth quarter of the prior year. The bottom line of $0.31 per common share was $0.02, or 6.1% behind the mean expectation of $0.33 per common share.  This is compared to $0.35 of EPS at the end of the linked quarter. The company paid a $0.30 dividend for the 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 »

  • mREITs: Bears Don’t Get It

    By Adnan Khan - January 31, 2013 | Tickers: AGNC, NLY, ARR, CXS.DL

    Mortgage Market Update

    Mortgage rates in the US have been climbing since the beginning of the year. This is despite record easing from the Fed to keep long term rates down. The average 30-year mortgage rate edged up 3.53%, it’s the highest since September, while the average 15-year rate increased 10 basis points to 2.81%. Mortgage rates are on the rise as housing inventories are shirking driving 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 »

  • Three Reasons To Buy These Banking Giants

    By Adnan Khan - January 31, 2013 | Tickers: BAC, C, JPM

    Stronger economic growth, better liquidity and higher asset quality make Dick Bove bullish on JPMorgan (NYSE: JPM), Bank of America (NYSE: BAC) and Citigroup (NYSE: C). Dick Bove might have changed companies but not his opinion. This noted banking analyst recently joined Rafferty Capital Markets and expects these three banks will rise more than 30% in the next 12 months. Besides predicting strong growth for the entire banking sector of 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 »

  • Five Reasons to Buy This Banking Giant

    By Adnan Khan - January 29, 2013 | Tickers: BAC, C, WFC

    Wells Fargo (NYSE: WFC) stands to be one of America’s largest banks by providing a variety of financial products nationwide. Despite headwinds from the ultra-low interest rate environment and losses from Sandy, I believe the bank has successfully positioned itself to continue the growth trend in its net income. Going forward, the bank will continue to benefit from its highly diversified business model, rebounding US housing markets, growth in more »

  • This mREIT Gets Even Better

    By Adnan Khan - January 28, 2013 | Tickers: AGNC, NLY, ARR, CXS.DL, PMT, STWD

    Starwood Property Trust (NYSE: STWD) operates as one of the largest commercial mortgage REITs, both buying existing commercial mortgages and originating its own commercial loans. It’s been over three years since the company commenced operations, and since then Starwood has carved out a dominant position in the REITs sector for itself, providing attractive dividend yields and potential for growth. The $3.4 billion market cap company was initially built more »

  • US REITs: The Next Corporate Bonds

    By Adnan Khan - January 28, 2013 | Tickers: ARE, BXP, ESS, PLD, SPG

    Under the prevailing ultra-low interest rate environment, where the 10-year Treasuries are offering only 1.88%, US REITs are the next best alternative to corporate bonds providing regular income. Therefore, investors looking for attractive risk-adjusted total returns should consider income-producing real estate investment trusts as part of their regular income portfolios. Barclays recommends half a dozen REITs it considers income investors should check out this year. The current dividend spread more »

  • Fed Alert: Is More Stimulus on its Way?

    By Adnan Khan - January 27, 2013 | Tickers: AGNC, NLY, ARR

    The Fed Chairman along with his fellow policymakers are scheduled to meet next week for two days to consider going ahead with their unprecedented easing or not. The debate on when to end bond purchases began in December last year, however, the US labor market has yet to show significant gains Fed wants to see before halting bond purchases. While unemployment hovered around 7.8% since the beginning of 2009 more »

  • Don’t Miss This Exciting 10% Yielding mREIT

    By Adnan Khan - January 27, 2013 | Tickers: AGNC, NLY, HTS

    Company Description

    Hatteras Financial (NYSE: HTS), like its fellows Annaly Capital Management (NYSE: NLY) and American Capital Agency (NASDAQ: AGNC) is a pure play Agency mortgage REIT. The company, with a market cap of $2.7 billion, owns assets with short durations and predictable prepayment characteristics. Company policy dictates the management to distribute 100% of its taxable income.

    Asset Portfolio
    Hatteras has both fixed rate and adjustable rate Agency securities more »

  • Regional Banks Reporting 4Q12 Are Flying High

    By Mohsin Saeed - January 25, 2013 | Tickers: PNC, USB

    Continuing the trend in the US banking sector, US Bancorp (NYSE: USB) and PNC (NYSE: PNC) reported strong 2012 fourth quarter results. According to Fitch, which rates the bank as one of the top rated banks globally, USB’s continued strength in mortgage banking was a major contributor to the bank’s earnings; while improvement in PNC’s results was associated with better revenues. USB’s adjusted bottom line of more »

  • Three Reasons To Buy This 16% Yielder

    By Adnan Khan - January 23, 2013 | Tickers: AGNC, NLY, ARR, NYMT, PMT

    Formed in 2003, New York Mortgage Trust (NASDAQ: NYMT) operates as a debt REIT which seeks to invest in traditional types of mortgage related investments, such as Agency ARMs and Agency IOs. The company primarily aims to invest in distressed markets like PennyMac Mortgage (NYSE: PMT). However, later on non-Agency residential mortgage backed securities; Agency RMBS consisting of ARM and hybrid adjustable-rate RMBS, multi-family CMBS and distressed residential single family more »

  • Buy This Exciting mREITs Portfolio Yielding 11%

    By Adnan Khan - January 20, 2013 | Tickers: NLY, ANH, ARR, CYS

    As John Williams, president of the San Francisco Federal Reserve Bank, sees the need for QE3 well into 2013 and rates to be kept near zero until at least mid-2015, I see Anworth Mortgage Asset (NYSE: ANH) and CYS Investments (NYSE: CYS) presenting an excellent buying opportunity. Despite the fact that both mREITs have an abundance of Agency MBS, these securities are either hybrid ARMs or 15-year fixed rates, which more »

  • Expense Management the Focus for These Banking Stock

    By Adnan Khan - January 19, 2013 | Tickers: BAC, C, NES.DL

    Citigroup (NYSE: C) and Bank of America (NYSE: BAC), two widely followed stocks, reported their earnings for the fourth quarter of 2012 on Jan. 17. Soon after the announcement both fell 3% and 3.5%, respectively, while regionals flew higher. In contrast, Morgan Stanley’s (NYSE: MS) shares were up 3% after the announcement of its performance for fourth quarter.

    Bank of America reported a bottom line of $0.7 more »

  • JPM Catapulted Into Spotlight

    By Adnan Khan - January 18, 2013 | Tickers: BAC, JPM, NES.DL

    On Jan. 16, 2013 JPMorgan Chase (NYSE: JPM) reported its performance for the fourth quarter of 2012. JPMorgan Chase reported an EPS of $1.39 on revenues of $24.4 billion. While the revenues slipped slightly below their estimate of $24.42 billion, the bottom line was way ahead of its expectations. The earnings per share figure for Goldman Sachs exceeded its consensus mean estimate by around 20%. This article more »

  • Welcome Signs For Annaly Capital & Other Agency mREITs

    By Adnan Khan - January 18, 2013 | Tickers: AGNC, NLY, ARR

    The second half of 2012 resulted in the flattening of the yield curve as a result of the Fed’s Operation Twist and the third round of quantitative easing, also known as QE3. However, the situation seems to have reversed. It would not be incorrect to say that the markets are rejecting the Fed’s QE3 as average mortgage rates are pushed higher in the second week of the year more »