No. of Recommendations: 3
GPT is one of the best REITs out there now, with approximately 50% upside over the next 18-24 months, and only then will the dividend start to ramp. CEO Gordon DuGan has a couple dozen years in the business (mainly at WP Carey) and has turned GPT into an exceptional performer over the last two years. It's trading at 13-14x run-rate 2014 year-end FFO and could probably increase FFO by 20% in 2015. Management has kept every promise to investors and in fact has overdelivered on many occasions. Yes, it has B of A exposure, but they continue to diversify and if you wait until they have diversified that exposure away, then you're not going to get that 50% gain. Also, management is highly incentivized to get the stock to $9 by mid-2016. Trading that kind of upside for the safety of a preferred is not the kind of risk I want to take.

Jim
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