Tag Archive | "REIT"

REITs Offering Incredible Dividends

Although the housing market continues to fall into a decline across most of the United States, many financial analysts are finding that the real estate market is actually offering the best dividends for investors. Real Estate markets are required by law to give ninety percent of taxable income back to shareholders, and thus, produce very high dividends.

There are three particular real estate investment trusts being recommended by stock market experts. These REITs include Annaly Capital, Senior Housing Properties Trust, and MDC Holdings. With dividends no smaller than six and a half percent, these three companies are optimal choices for investing for anybody looking to add to their portfolios.

Annaly Capital specializes in mortgage loans, and has a dividend yield of an astounding fifteen percent. Annaly is benefitting immensely from the government’s push to keep interest rates at record-low levels. They are considered to be one of the biggest REITs on the market, and have a proven history to back that consideration. Even at their worst levels in the past few years, Annaly has produced dividends no lower than thirteen percent.

Senior Housing Properties Trust is a company that looks to grow, as more baby boomers become senior citizens. The company specializes in senior housing, and produces an average dividend of seven percent. Senior Housing Properties Trust has experienced a strong increase in revenue over the past few years. It has been paying a consistent seven percent dividend to shareholders for more than ten years, making it an incredibly attractive option for investors.

The last REIT offering attractive dividends is MDC Holdings. MDC Holdings currently offers a six and a half percent dividend yield. The company specializes in building and selling new homes is certainly not an obvious choice for most investors, though they specialize in a niche market, allowing them to produce strong results. They have produced a solid six percent dividend for nearly twenty years. Despite the very weak housing market, they are an excellent choice for investors.

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Increased Bond Sales Likely Amidst Record Debt for Japanese REITs

With a record amount of debt coming due in the next year, financial and real estate experts in Japan are expecting a significant amount of new bond sales by Japanese real estate investment trusts. Japanese real estate investment trusts have already registered to see a record amount of one trillion yen in bonds over the next few years. That number may actually increase with over two billion dollars of debt coming due.

Many Japanese real estate investment trusts are looking to sell bonds so as to facilitate the repayment process of the debts that are coming due. As such, refinancing the debt has become an increasingly attractive option for these trusts.

The overall real estate investment trust index has seen massive declines this year, due in part to both the devastating earthquake that decimated parts of the country, as well as the fact that many trusts are facing record debt. Despite the declines, financial analysts believe that REITs provide for a very opportunistic investment, and may actually provide some excellent returns.

One of the primary reasons as to why real estate investment trusts are considered to attractive to investors is that the real estate market is receiving government support. Currently there exists little risk of defaults within the market, making it a safe and stable option.

Furthermore, prices realized in commercial real estate transactions have soared through the roof, essentially tripling the number from the previous quarter alone. Office vacancy rates are down slightly, and rent prices have fallen as well in the Japanese commercial real estate market.

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Major REIT Focusing on the Expansion of Retail

One of Canada’s biggest real estate investment trusts, or REIT, is changing its primary focus of investment. Homburg Canada REIT has announced that it is selling off many of its residential real estate properties, as has changed its focus to retail shopping centers in both Quebec and Ontario.

The real estate investment trust sold off forty-two residential properties in recent months, which brought in a net total of thirty-seven million dollars. As part of its retail expansion, Homburg purchased twenty-nine retail centers for more than one hundred and ten million dollars.

Retail properties now make up fifty percent of Homburg Canada’s commercial portfolio following the most recent retail transaction. Their portfolio also consists of office buildings, and industrial sites.

The retail centers owned by Homburg REIT include a number of major Canadian retailers, including Jean Coutu Group, IGA, Metro, and Dollarama.

Homburg REIT opted to sell most of its residential real estate properties due to limited long-term growth. The investment trust now owns roughly four hundred and fifty residential properties, which is almost seventy-five percent less than it did in the recent past.

The Canadian real estate investment trust has made it clear that they will continue with their current trend of expanding on its retail property portfolio instead of its residential real estate portfolio. Experts believe that the move makes sense, as the retail sector is showing more signs of guaranteed greater profits.

Apparently shareholders and investors agree, as Homburg Real Estate Investment Trust’s stock increased with the news of the latest acquisition of retail properties.

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Shopping Mall Purchased by Washington Real Estate Investment Trust

The Washington Real Estate Investment Trust has made another strong, high-end commercial real estate purchase to bolster its portfolio. The REIT recently bought the Olney Village Center, a Maryland shopping center for over fifty eight million dollars.

The shopping center was renovated in 2003, and has leased nearly all of its allotted space. With an affluent customer base, and a very strategic location, the Olney Village Center has been considered to be an excellent buy for the Washington Real Estate Investment Trust. In fact, it is slated to return a very strong yield for Washington Real Estate in the first year alone. The shopping center includes Shoppers Food Warehouse, T.J. Maxx, HomeGoods, and SunTrust Bank.

Washington Real Estate currently owns eighty-seven properties, which include twenty-six office properties, eighteen medical office properties, sixteen retail centers, sixteen industrial properties, and eleven multifamily properties. The Real Estate Investment Trust focuses most of its investments in properties that are known to produce income. While such a focus does not really make it possible to find a real bargain, it does prevent any kind of major losses due to lack of profit.

Washington Real Estate Investment Trust is the oldest publicly traded REIT in the nation, as it was established in 1960. It is based in the Washington DC area, and holds a number of properties in the Capital Beltway region. The Capital Beltway region includes the main business district and various wealthy suburbs of Washington DC.  They have consistently provided great value and investments for their shareholders, with strong returns on initial investments.

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