What Forest City Enterprises (NYSE:FCE.A)(NYSE:FCE.B)
is trying to do is not easy, nor is it something that can be completely
quickly. Once a high-leverage property developer, Forest City is
looking to remake itself as a less risky, less leveraged, more
diversified property operator and developer. Forest City has become a
large presence in the hot Brooklyn market and still has opportunities to
sell non-core assets and improve existing operations, not to mention
possibly convert to a REIT structure. There are some reasons for caution
(the Ridge Hill development, perhaps most prominently), but the shares
still look undervalued today.
Read more here:
Forest City Enterprises Still Not Getting Full Credit For Its Transition
Showing posts with label Simon Property. Show all posts
Showing posts with label Simon Property. Show all posts
Tuesday, August 5, 2014
Thursday, October 7, 2010
REITs With Yield And Upside
As a general rule, there are only two common reasons to own real estate investment trust (REIT) shares - the normally above-average yields that these companies pay and the diversification benefits of incorporating real estate into a portfolio. In some cases, though, REITs can also provide above-average capital appreciation for risk-tolerant investors willing to buy in when things still look difficult.
Although the REIT sector has generally recovered since the worst of the fall of 2008 and spring of 2009, the recovery seems to have flattened out this year. Does that mean it is time for investors to consider this sector again, or is the uncertain state of the economy an argument for waiting a little longer?
Hospitality Properties Trust (NYSE:HPT)
With a healthy-looking 8% yield, this owner of hotels and travel centers (truck stops) would seem to be another way to play the eventual recovery in economic activity, particularly business and leisure travel. Unfortunately, the mid-priced travel industry is still taking its licks and operators like Marriott (NYSE:MAR) continue to struggle to fill rooms. Overcapacity in the hotel space and an inability of operators to meet minimum rent thresholds are certainly threats to the dividend, but risk-tolerant investors might look to this idea as a double play on both income and economic recovery.
Please click the link to read the full piece:
http://stocks.investopedia.com/stock-analysis/2010/REITs-With-Yield-And-Upside-HPT-LRY-DRE-MAR-SPG-SLG-PSA1007.aspx
Although the REIT sector has generally recovered since the worst of the fall of 2008 and spring of 2009, the recovery seems to have flattened out this year. Does that mean it is time for investors to consider this sector again, or is the uncertain state of the economy an argument for waiting a little longer?
Hospitality Properties Trust (NYSE:HPT)
With a healthy-looking 8% yield, this owner of hotels and travel centers (truck stops) would seem to be another way to play the eventual recovery in economic activity, particularly business and leisure travel. Unfortunately, the mid-priced travel industry is still taking its licks and operators like Marriott (NYSE:MAR) continue to struggle to fill rooms. Overcapacity in the hotel space and an inability of operators to meet minimum rent thresholds are certainly threats to the dividend, but risk-tolerant investors might look to this idea as a double play on both income and economic recovery.
Please click the link to read the full piece:
http://stocks.investopedia.com/stock-analysis/2010/REITs-With-Yield-And-Upside-HPT-LRY-DRE-MAR-SPG-SLG-PSA1007.aspx
Subscribe to:
Posts (Atom)