Until recently office REITs confined their investing almost entirely to the purchase of buildings already standing.
What about breaking ground outside the U.S., say, in Europe, where REITs are gaining popularity?
Price gains would help the REITs, but the narrowing spreads would kill their income.
Since September 1996 equity REITs have clocked a 10.4% yearly return, the mortgage ones 0.7%.
Another good comparison to make is with the average yield for apartment REITs, currently 7.8%.
Often investors trade in and out of Mortgage REITs around the timing of stock offerings.
Fortunately for the income-hungry investor, there are safer dividends to be found in REITs.
If you take the long view, REITs with top-drawer properties and managements look most compelling.
Mall REITs' stats have suffered from the blowup of one prominent member, Mills Corp.
Wells REIT pays an annualized 7% dividend yield, in line with those of public office REITs.
Besides long term JGBs, the fund has bought commercial paper and Tokyo-listed ETFs and REITs.
REITs are companies that own lots of land and operate lots of money-producing properties.
Since REITs have a strange name and sound complicated, some shy away from them.
Aside from the rich yields, the other selling point is these REITs' tax treatment.
That said, some value-minded investors who have avoided REITs are finally buying into the beaten-down shares.
David Lerner Associates and the Apple REITs emerge victorious in this contentious and high-profile class action.
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In a fairer tax system every single corporation would be taxed just like REITs.
All three REITs are similarly capitalized, each with a market cap in the half-billion-dollar range.
These three REITs had seen their IPOs oversubscribed by 8.4 times to 43.9 times.
And that often involves consolidating from small warehouses to larger ones, the province of industrial REITs.
But Thornburg has a marketing advantage over other REITs -- he can claim he's helping charities.
He began shorting REITs in 2005, when the bulls still had two years to run.
In the meantime, many investors have been shunning the individual mortgage REITs for ETFs instead.
Even dowdy industrial REITs, mainly warehouses, have fared well, with a 25% total return this year.
With only 23 malls, Taubman is among the smallest REITs but it has the highest-quality properties.
Mall REITs are trailing the rest, albeit with a hardly disgraceful 18% thus far in 2006.
Naturally, the higher rents are going to bolster cash flows and dividends for apartment REITs.
But the real hounds in the reit kennel are health care REITs, off 10.5%.
REITs in general are thought to be at risk of weakening rental streams in a recession.
But health REITs are better insulated from an economic slump than, for instance, office REITs.
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