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Real-Money Stock Picks / Jim Royal

URL:  https://boards.fool.com/i-have-39no-faith39-in-reits-at-this-point-34476453.aspx

Subject:  Re: REITS - FRT, O, STOR and ROIC Date:  4/18/2020  7:22 PM
Author:  TMFWysocki Number:  5297 of 5533

I have 'no faith' in REITs at this point.

Yeah, Rob, I understand where you're coming from. Most of my
retail REIT stocks have been decimated: BRX, KIM, MAC (ugh!),
SKT (Ugh!!!), SRC, and STOR.

ROIC is only a little in the red for me but that's because I
bought below its IPO price back around 2010.

O is in the green for me and proving to be quite resilient,
probably because of the respect it gets from investors
(or maybe I'm being delusional and am merely lucky with O).

CUBE, MNR, STAG and UDR are way off their highs but are
still strongly profitable for me.

I think BRX, KIM, ROIC, SRC and STOR will be fine although
some of them may reduce their dividends for a while but
they have decent dividend to FFO ratios and decent debt
ratios and most of their tenants are open. At least 60%.

MAC and especially SKT are in for some serious restructuring
that will include suspending their dividends, selling off
properties to raise capital and maybe selling new shares to
raise capital severely diluting existing shareholders at below
NAV.

I just don't see how SKT will survive. The fact that insiders
have not been buying shares at these prices suggests to me
that they just don't know what the future holds for SKT
either.

David
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