Until the MNR merger, buying EQC was like buying a money market mutual funds that can pretty much only be used to buy real estate and with Sam Zell getting to choose the real estate purchases. I view EQC as a form of market timing strategy. Zell has a reputation for having done well by buying major dips, but he has been waiting a long time for such a dip. In the interim cash each and every year has underperformed. Perhaps the bottom will fall out of the real estate markets soon and Zell can put the cash to good use, but real estate has been beating cash over the last few years as one would expect.On the other hand EQC was offices which have underperformed lately. No position or interest in EQC.
I mean we all know the sub-sectors have their own dynamics from the overall real estate market. The office sector is hit and recovering. It is bit disappointing to see nothing was done during last year. I am wondering whether the deals are not there, or principle is having issues (i.e., his model targets are not moving or adjusting).
I was wondering the same thing. In the equity markets, the spring of last year provided excellent opportunities, if you had the stomach.I would have thought there would have been at least a few opportunities in the property markets, yet ECQ and Zell did nothing.The MNR transaction shows EQC is not limiting itself to offices, making it all the more surprising!Go figure?
I've been really interested in searching of value in the office reit sector as well. SLG, the biggest NYC office landlord, strikes me as a good value, contrarian play as I'm bullish on back-to-office. Still sitting well below per-covid valuation and offering high monthly dividend yield is why I'm ultimately buying.
Also take a look at Boston Properties (BXP)Historically they have been one of the premier and largest office REITS with about 200 first class properties. They are a 12 billion dollar company which has a major presence not only in NYC but in many high barrier to entry markets that many Office REITS find it difficult to enter to compete with them. See LinksgracepeaceBTW, SLG would probably be a decent pick, but don't make the mistake of looking strictly at yield in your search, but focus on total return over a long period of time. Some of the highest yielders are probably a bad investment.https://seekingalpha.com/article/4441171-15-percent-annual-r...www.bxp.comBUSINESS: Boston Properties, Inc., a self-administered and self-managed real estate investment trust, is one of the largest owners, managers, and developers of first-class office properties in the United States. The Company acquires, develops, and manages its properties through full-service regional offices in Boston, New York City, Washington, D.C., San Francisco, and Princeton, New Jersey. Its property portfolio is comprised primarily of first-class office space and also includes one hotel. Boston Properties is well-known for its in-house building management expertise and responsiveness to tenants' needs. The Company has a superior track record in developing Class-A, Central Business District office buildings, suburban office centers and build-to-suit projects for the U.S. Government and a diverse array of high-credit tenants.
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