Is anyone here thinks the stock prices of REIT's have run up faster than their fundamentals? I mean the economy is not yet fully open, and still (at least retail REIT's) are not back to their pre-COVID occupancy, or rent collection, why are the stock prices back to pre-COVID levels and in many cases over and above?
I hold 9 REIT common shares. Here are the % below pre-COVID highs.LAMR 2% (div cut, but got quite a bit)(I've already written long dated and significantly OTM covered calls against these shares).STAG 4.1% (CC sold as part of fixed income replacement strategy)MPW 11.5%STOR 19.5%WELL 21.9% (div cut)SRC 23%VTR 26.5% (div cut)O 26.9%SPG 30.5% (div cut)I own on .4% of my portfolio in preferred shares.I'm using some common stocks as my fixed income alternatives by buying and selling JOTM near term CC's to generate better than preferred income and collect nice dividends.My STAG position and some of my O position are part of this strategy. Working well so far, but it does require more monitoring than I'm used to.John
Hi Kingran!Well, the market is always forward-looking so I am not surprised at the recent run-up in REIT prices and I expect the appreciation to continue as the dividends are ramped back up during the year.But, hey, what do I know? ;->David
I have missed the top on the tech stocks... even though I felt I need to lighten up a bit during late Jan and early Feb... so, I want to be ready for REIT's peak...Separately, I know the news out of REIT's will be increasing occupancy, increasing rent collections, increasing dividends for the next 2 to 3 years, but how much of that is already priced?
I know the news out of REIT's will be increasing occupancy, increasing rent collections, increasing dividends for the next 2 to 3 years, but how much of that is already priced? Good question, and I surely don't know the answer. But, then I don't really care because I invest in general for the income generated by the companies, especially REITs. David
So you are generally agnostic of the price, and your decision is made at the time of buy for the yield? Am I getting it correct?
So you are generally agnostic of the price, and your decision is made at the time of buy for the yield? Am I getting it correct?I have some really good (low) entry prices on my REIT shares, which also means really good yields on cost, and I think with the reopening of the economy, that REITs and their dividends will continue to rise. Sure, you can cash out now with great gains, but that's not for me. I want the recurring income.(And, by the way, I am not all that lucky, because I got into MAC way too soon and I am down by some 47%.)David
Nobody gets everything correct. Our lowly retail REIT's have bounced back almost 100% since Nov 6th. In fact, I have recently opened a covered call on KMI at $14, my gut was saying, at least have some position as straight equity, but I didn't listen to myself (no surprises there!!) and boom it is $16+ in a month. just be happy about 4.5% return on 45 days.
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