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Message
re: REIT's:Pro & Cons
Posted on 8/28/11 at 11:18 pm to kfizzle85
Posted on 8/28/11 at 11:18 pm to kfizzle85
quote:
Common stock, $0.01 par value; 300,000 and 150,000 shares authorized, 178,509 and 64,856 shares issued and outstanding, respectively
I believe they increased the number of shares authorized from 150,000 to 300,000. And the number of shares issued and outstanding increased from 64,856 to 178,509. They could have made it easier to understand if they had included date references for each of the respective numbers.
1
Posted on 8/28/11 at 11:24 pm to Poodlebrain
Thank you for pointing that out, that makes complete sense given their share issuance over the past 6 months.
Posted on 8/29/11 at 9:34 am to TheHiddenFlask
quote:
that would “leave a bad taste in investors' mouths,” Mr. Chitty said.
Had to
Mortgage REITs and non-traded REITs...
Posted on 8/29/11 at 10:07 am to tirebiter
I didn't hire a financial advisor cause he was pushing his fricking REIT so hard. I have troubling thoughts on why he's pushing this fricking reit so hard, his benefit or mine. And you know with the stock market crisis going on, guess what kind of packet i just got in the mail... his same REIT shite that will save the day in stock market troubles...
Posted on 8/29/11 at 10:43 am to Chad504boy
So you're not backing up the truck to load up???
Posted on 8/29/11 at 10:48 am to tirebiter
quote:
So you're not backing up the truck to load up???
He can take his pretty high grade commercial buildings and shove it up his arse.
Posted on 10/1/11 at 3:03 pm to BigD329
There was some talk about AGNC losing its REIT tax benefit since it is a mortage REIT. Anyone know what the verdict was? For people that know more than me about REITs is this something to worry about?
Posted on 10/3/11 at 10:52 am to kfizzle85
I've only been getting 6.5% on my REIT, I feel sad now. 
Posted on 10/3/11 at 1:53 pm to BigD329
quote:
A stock that returns 14-19% dividend and price that doesn't fluctuate that much doesn't seem that risky to me.
I suppose it doesn't fluctuate that much short term, but they seem to over the long haul.
Posted on 10/3/11 at 2:01 pm to Cdawg
quote:
I suppose it doesn't fluctuate that much short term, but they seem to over the long haul.
Compared to what?
This relative statement is causing confusion without a bar set.
Posted on 10/4/11 at 10:54 am to TheHiddenFlask
quote:
Compared to what?
I don't know. Don't mind what I say.
Posted on 10/4/11 at 2:29 pm to Cdawg
quote:
I suppose it doesn't fluctuate that much short term, but they seem to over the long haul.
Well, I noticed just a tad of volatility the past two days:
quote:
Losses over the past two days reached as much as 11.1 percent, the biggest fall in almost three years. The shares pared today’s declines to 3.2 percent at 12:20 p.m. in New York.
LINK
Then I look at the fact sheet on the company and see a net interest spread on the portfolio of 2.46% with leverage of 7.6x, etc. This is not what I would call a low risk investment but anyone that does a little investigating would figure that out. Not saying it hasn't done well for investors the last two years, but the future regarding the company's funding is far from known.
LINK
Not my cup of tea, party on.
ETA - there is a huge difference between equity and mortgage REITs. If people don't know the difference they should read up on the industry/sector instead of blindly speculating because the yield looks all nice and shiny.
This post was edited on 10/4/11 at 2:32 pm
Posted on 10/5/11 at 10:11 am to tirebiter
I've got a limit order in right now for some CIM. Going to give this REIT thing a try.
Posted on 10/6/11 at 2:11 pm to BigD329
quote:
I've been invested in REIT's for the past two years and done pretty good. Yet several "financial advisors" always say stay clear of them. A stock that returns 14-19% dividend and price that doesn't fluctuate that much doesn't seem that risky to me.
These are financial mortgage reits. These reits have there own risks. The major risk is interest rates and since the Fed has the interest rate at 0-.25% this is the best of times for these reits. It can not get better only worse as interest rate rise. As interest rates rise they make less net income and cash flow and have to decrease their dividend payments. These reits are also highly leveraged, NLY is leveraged 6x, which means their net income is about $2.30 a share and they pay 6X a dividend of about 14%. There are some great articles about dividend investing at seekingalpha.com a free site.
Posted on 10/6/11 at 2:20 pm to Teacher
The Fed has said they will keep interest rates low for the next two years so these mortgage REITs will be a good investment, but watch out when the Fed starts raising interest rates.
Posted on 10/6/11 at 3:00 pm to Teacher
Not preaching on REITs, but that's kind of a blanket statement. A REIT with a portfolio of fixed agencies isn't in the same boat as a REIT with a basket of commercial loans. I've never heard leverage defined like that, either, and they're not paying a dividend of of 6x2.30, its 2.40 right now.
Posted on 10/7/11 at 9:01 am to kfizzle85
Sorry K my number was off, I read the article a month ago. The article did say NLY was leveraged 6X.
Posted on 10/7/11 at 10:52 am to kfizzle85
Sorry K my number was off, I read the article a month ago. The article did say NLY was leveraged 6X.
Posted on 10/10/11 at 9:56 am to kfizzle85
NLY has a debt to equity ratio of 5.6 and AGNC has a 8 D/E ratio. Highly leveraged. They borrow money to help increase their EPS and dividend payment. When interest rates rise be careful.
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