No. of Recommendations: 16
Interesting day today, with the Dow and S&P up strongly.

All values are the medians for the group:

Equity commons= -.61%

MREIT commons= -2.16%

REIT preferreds= -.16%

My best guess is that investors are concerned about the MREIT interest rate spreads because 5 year and 10 year US Treasuries had large interest rate increases. I would have thought the MREIT cost of funds is more closely aligned to the short term rates which remain in the 0% to .25% range. In theory the MREITS attempt to match the duration of their loan book with their funding book.

Since the recent downturn started on 5/17/13, here are the stats:

Equity commons= -3.78%

MREIT commons= -6.04%

REIT preferreds= -.0%

If I owned MREITs I would spend more time understanding what is driving them down. Then you have to make a forecast if you think it is going to continue.

If you own preferreds, I would not be too concerned . . .

Thanks,

Yodaorange
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