Comments on: Is It Time To Start Investing in REITs? http://www.therealestatebloggers.com/2007/11/24/is-it-time-to-start-investing-in-reits/ Real Estate Blog, Mortgage, and Development News Fri, 20 Nov 2009 23:48:48 -0600 http://wordpress.org/?v=2.8.6 hourly 1 By: Tom Price http://www.therealestatebloggers.com/2007/11/24/is-it-time-to-start-investing-in-reits/comment-page-1/#comment-117983 Tom Price Wed, 28 Nov 2007 16:41:00 +0000 http://www.therealestatebloggers.com/2007/11/24/is-it-time-to-start-investing-in-reits/#comment-117983 Anatole Pevnev in his latest REITtalk podcast (episode 126) makes the point that the relative inactivity of highly leveraged private equity buyers is going to be advantageous to REITs, most of whom have strong balance sheets. Watch out for a spike in M&A activity! Anatole Pevnev in his latest REITtalk podcast (episode 126) makes the point that the relative inactivity of highly leveraged private equity buyers is going to be advantageous to REITs, most of whom have strong balance sheets. Watch out for a spike in M&A activity!

]]> By: Robert Coté http://www.therealestatebloggers.com/2007/11/24/is-it-time-to-start-investing-in-reits/comment-page-1/#comment-115164 Robert Coté Mon, 26 Nov 2007 14:28:21 +0000 http://www.therealestatebloggers.com/2007/11/24/is-it-time-to-start-investing-in-reits/#comment-115164 Yep. Ask the Japanese how their investment in the Rockefeller Center worked out. Yep. Ask the Japanese how their investment in the Rockefeller Center worked out.

]]> By: British Investor See’s US Commercial Deals Like After the S&L Crisis — The Real Estate Bloggers http://www.therealestatebloggers.com/2007/11/24/is-it-time-to-start-investing-in-reits/comment-page-1/#comment-115127 British Investor See’s US Commercial Deals Like After the S&L Crisis — The Real Estate Bloggers Mon, 26 Nov 2007 13:31:56 +0000 http://www.therealestatebloggers.com/2007/11/24/is-it-time-to-start-investing-in-reits/#comment-115127 [...] looks like the combination of a weak dollar and softening commercial market are creating opportunities for overseas investors to come in and buy [...] [...] looks like the combination of a weak dollar and softening commercial market are creating opportunities for overseas investors to come in and buy [...]

]]> By: Robert Coté http://www.therealestatebloggers.com/2007/11/24/is-it-time-to-start-investing-in-reits/comment-page-1/#comment-114882 Robert Coté Mon, 26 Nov 2007 05:41:25 +0000 http://www.therealestatebloggers.com/2007/11/24/is-it-time-to-start-investing-in-reits/#comment-114882 Not investment advice, yadda, yadda: It doesn't take a rocket scientist to know with absolute certainty that some homebuilders are going to go bankrupt. Which ones? Does it matter? Here reach into this bag of marbles; there are 15 white marbles, 2 gold marbles and 3 black marbles. What's too worry? The white marbles will eventually someday be worth one marble apiece again. That cuts down on your odds of losing everything should you grab a black marble in search of the gold marble. Right? Toll reported negative net sales in one region for the first two weeks of last month. Anecdotal and too small a data cachement but you know what they say about cockroaches. Short answer; these days it isn't investing so if you are an investor and not just a gambler who thinks they are an investor this isn't the market. Not investment advice, yadda, yadda:

It doesn’t take a rocket scientist to know with absolute certainty that some homebuilders are going to go bankrupt. Which ones? Does it matter? Here reach into this bag of marbles; there are 15 white marbles, 2 gold marbles and 3 black marbles. What’s too worry? The white marbles will eventually someday be worth one marble apiece again. That cuts down on your odds of losing everything should you grab a black marble in search of the gold marble. Right?

Toll reported negative net sales in one region for the first two weeks of last month. Anecdotal and too small a data cachement but you know what they say about cockroaches.

Short answer; these days it isn’t investing so if you are an investor and not just a gambler who thinks they are an investor this isn’t the market.

]]> By: john http://www.therealestatebloggers.com/2007/11/24/is-it-time-to-start-investing-in-reits/comment-page-1/#comment-114795 john Mon, 26 Nov 2007 01:24:39 +0000 http://www.therealestatebloggers.com/2007/11/24/is-it-time-to-start-investing-in-reits/#comment-114795 I agree. Does anyone have some more advice for some REITs specifically or any real estate related stocks that have now hit bottom that are worthing buying? KBH for instance is at a low price right now--or is it too early and bottom is still a ways away. I'll take a look at the ones suggested. Thanks. I agree. Does anyone have some more advice for some REITs specifically or any real estate related stocks that have now hit bottom that are worthing buying? KBH for instance is at a low price right now–or is it too early and bottom is still a ways away. I’ll take a look at the ones suggested. Thanks.

]]> By: Lisa Galley http://www.therealestatebloggers.com/2007/11/24/is-it-time-to-start-investing-in-reits/comment-page-1/#comment-114748 Lisa Galley Sun, 25 Nov 2007 23:33:22 +0000 http://www.therealestatebloggers.com/2007/11/24/is-it-time-to-start-investing-in-reits/#comment-114748 I'm in with Robert Cote's point. The REIT securities market is pretty efficient - and the big gap between share price and net asset values does not immediately mean to go buy REIT stocks right now. On the commercial RE side, I'm seeing lots of deals getting sidelined right now as sellers haven't accepted the lower repricing of their assets (due to rising cap rates) or the new more expensive financing terms that buyers are getting, both of which force lower asset pricing. It will take time for the new pricing/yield expectations to work through the system. And the 20% gap doesn't clearly indicate whether we are at the beginning, middle or end of that process. I’m in with Robert Cote’s point. The REIT securities market is pretty efficient – and the big gap between share price and net asset values does not immediately mean to go buy REIT stocks right now. On the commercial RE side, I’m seeing lots of deals getting sidelined right now as sellers haven’t accepted the lower repricing of their assets (due to rising cap rates) or the new more expensive financing terms that buyers are getting, both of which force lower asset pricing. It will take time for the new pricing/yield expectations to work through the system. And the 20% gap doesn’t clearly indicate whether we are at the beginning, middle or end of that process.

]]> By: Robert Coté http://www.therealestatebloggers.com/2007/11/24/is-it-time-to-start-investing-in-reits/comment-page-1/#comment-114410 Robert Coté Sun, 25 Nov 2007 14:46:33 +0000 http://www.therealestatebloggers.com/2007/11/24/is-it-time-to-start-investing-in-reits/#comment-114410 <i>"Recently, REITs on average have been selling for about 20% less than their net asset values."</i> Aye there's the rub. Anyone heard anything recently about any.... oh I don't know... markdowns in the financial markets as companies are forced to revalue their real estate backed portfolios? If so and baked into the cake for REIT valuations then the speaker in the article agrees that they are still overvalued relative to underlying asset worth. “Recently, REITs on average have been selling for about 20% less than their net asset values.”

Aye there’s the rub. Anyone heard anything recently about any…. oh I don’t know… markdowns in the financial markets as companies are forced to revalue their real estate backed portfolios? If so and baked into the cake for REIT valuations then the speaker in the article agrees that they are still overvalued relative to underlying asset worth.

]]> By: The Div Guy http://www.therealestatebloggers.com/2007/11/24/is-it-time-to-start-investing-in-reits/comment-page-1/#comment-113778 The Div Guy Sat, 24 Nov 2007 21:36:34 +0000 http://www.therealestatebloggers.com/2007/11/24/is-it-time-to-start-investing-in-reits/#comment-113778 I have started to purchase shares of CLP and HRP. I may be a little early but I don't mind collecting the dividends while I wait for a turnaround. I have started to purchase shares of CLP and HRP. I may be a little early but I don’t mind collecting the dividends while I wait for a turnaround.

]]> By: Bryan Stanton http://www.therealestatebloggers.com/2007/11/24/is-it-time-to-start-investing-in-reits/comment-page-1/#comment-113724 Bryan Stanton Sat, 24 Nov 2007 20:17:00 +0000 http://www.therealestatebloggers.com/2007/11/24/is-it-time-to-start-investing-in-reits/#comment-113724 Great advice, I agree. Great advice, I agree.

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