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 . . .


Print the post  


Related Boards
Real Estate Investing
This is a great board for Real Estate other than REITs.

Buying & Selling a Home
Get your personal advice about mortgages, agents, etc. here.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.