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What is REIT?
A Real Estate Investment Trust or REIT (pronounced ) is a tax designation for a corporation investing in real estate that reduces or eliminates corporate income taxes. In return, REITs are required to distribute 90% of their income, which may be taxable in the hands of the investors. The REIT structure was designed to provide a similar structure for investment in real estate as mutual funds provide for investment in stocks.
They lost alot from their value last year with no reason except from the panick on the market, my opinion... they went down to much with no reason.
Those companies are doing very well financially.
Buying Call options for the middle of the next year will be a good idea or buying stocks with some put options as a protection.
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Kohalza
Apr 25 at 4:26 ET
Thanks for the input. Looked at these companies and was convinced to make a small buy.
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ITGURU
Apr 25 at 7:12 ET
I like Reits as well and feel they have been undervalued. I have been investing in FRT They have a high quality portfolio and are performing well http://www.federalrealty.com/
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guliamo
Apr 27 at 9:39 ET
I like IGR in this sector. They are a very diversified REITwith holdings in Office, Residential and Travel properties and (!) most of their holding are in major cities outside the US. Also, their US holdings are mainly in Boston and NYC which have been less affected as far as real estate prices.
IGR has been beaten up pretty bad and are coming back up nicely, I've gained about 10% in the last months.
Add to this a nice and steady 7% dividend yield and this sounds like a nice position in the real estate market.