The Stock that is Up 11,000% in the Last 6 Years

There is a stock that is traded on the New York Stock Exchange trading around 29 per share. It is not a well known name but it has an amazing track record. Over the last six years, the stock has increased in value by over 11,000%. Actually, 11,202% to be more precise.

First, can you guess what business the stock is in? Not technology, not biotech, not robotics, not 3D printing. As a matter of fact, the company is a real estate investment trust.

As of six years ago last Friday, you would have paid 23 cents per share to buy the stock. Now the stock is trading at 28.82. So, if you had bought 10,000 shares for $2,300 back then, your investment would new be worth well over a quarter of a million dollars.

Of course, if you were willing to speculate, and bought 50,000 shares for a little over $10,000, the investment would be worth almost one and a half million dollars.

Oh, I still haven't told you the name of the company.Here it is: General Growth Properties, Inc (GGP). The stock trades at 42 times trailing earnings and 18 times forward earnings. It sports a yield of 2.4%.

How to Play the Real Estate Recovery

First there is the anecdotal evidence. I know of a Sacramento couple that has put offers on eight homes in the last three months, all above the asking price, and getting outbid on all of them, mostly by all cash buyers according to their real estate agent. I have a friend who recently sold his house in Pleasanton, California, who received several all-cash offers way above the asking price, and closed escrow in thirty days. A house in my neighborhood sold within six hours of listing.

Now the statistical evidence. According to the Standard & Poor's/Case-Shiller Home Price Index, which is the leading measure of U.S. home prices, home prices rose 4.3% in the 12 months ending in October. The fact that home prices is good, though you may think that 4.3% isn't that much. However, what many analysts fail to take into account is that most people (although recently that seems to be changing) do not pay all cash for a house. They generally put 10% to 20% down.

What that means is that if you had purchased a home last year with a 20% down payment, and the home price rose by 20%, the return on the down payment would actually be 21.5%, in simple terms. This of course assumes all other things being equal, i.e. the mortgage, taxes, insurance, etc. being covered by rental income or an alternative to paying rent if living in the house.

If the down payment is only 10% with the same assumptions, the return would be double that. And if you have owned your house for a few years and lost all your equity, your gain during the last year would be infinite.

The reasons for these real estate gains are several. First, the Federal government has kept mortgages artificially low, making it easier for home buyers to qualify. Second, there have been an influx of foreign buyers willing and able to pay all cash for homes. Third, because of the cutback in the building of new houses, the inventory of available homes for sale has been constricted. Fourth, real estate has been extremely depressed for a few years, with a bounceback being inevitable.

So what is an investor to do who wants to play the single family home real estate market without having to buy a rental house? Most of the residential real estate investment trusts, such as Aimco (AIV), AvalonBay Communities (AVB), and Home Properties (HME), invest in apartment houses. To invest in single family homes, you have to dig further.

Silver Bay Realty Trust (SBY) owns a portfolio of over 3,100 single-family residential properties through entities associated with Two Harbors Investment Corp. (TWO), and Provident Real Estate Advisors LLC. The company just went public in mid-December with 13.25 million shares in the IPO at $18.50 per share. Several officers and directors purchased the stock. Although falling about 2% after the IPO, the stock is now up 14 cents from its new offering price.

Then there are the homebuilder stocks, but most of those have already had a substantial move this year. PulteGroup (PHM) is already up 179% this year, KB Home (KBH) is up 128%, and Lennar (LEN) is up 89%.

Last but not least, the real estate brokers are doing quite well. The biggest pure play in this arena is Realogy Holdings Corp. (RLGY), which franchises the Century 21, Coldwell Banker, ERA, Sotheby’s International Realty, Coldwell Banker Commercial, and Better Homes and Gardens Real Estate brand names. The stock trades at 33 times forward earnings, and posted a quarterly revenue increase of 10.9% year-over-year with negative earnings.

If you think that real estate is on the move in all areas (apartments, commercial, industrial, etc.), you can access the free lists of REITs with High Yields and Residential REITs with High Yields at WallStreetNewsNetwork.com.

Disclosure: Author owns SBY and has a long option position in RLGY.

By Stockerblog.com

REITs that Pay Dividends Monthly

I personally think that real estate has bottomed out, with the possible exception of high end single family residences. An optimal way to invest in real estate, if you think the turn-around has started, is through Real Estate Investment Trusts, also known as REITs. Almost all the income from REITs is passed through to investors to avoid double taxation, at the corporate level and at the shareholder level.

Fortunately, there are plenty of REIT specialties to choose from, including apartments, commercial buildings, personal storage units, industrial properties, government buildings, medical buildings, and mortgages.

You can buy and manage your own real estate directly, but then you lose out on many of the benefits of REITs, such as liquidity, professional management, diversification, and not having to deal with plumbing problems in the middle of the night.

Several REITs even pay dividends monthly, according the the list of monthly dividend stocks at WallStreetNewsNetwork.com. Yields range from 3% to more than 6%. The monthly dividends can provide advantages over quarterly dividends, in that the volatility is usually lower, compounding is greater if dividends are reinvested, and capital is returned more quickly.

One monthly dividend paying REIT is Inland Real Estate Corp. (IRC), which offers a yield of about 6.4%, and trades at 10 times forward earnings. This REIT owns and operates shopping centers and single-tenant retail properties in the Midwest. The company has been paying monthly dividends since 2004.

LTC Properties, Inc. (LTC) which sports a yield of 5.8% and trades at a forward PE of 13, is a long-term care real estate investment trust. This is a REIT that pays monthly dividends, and the dividend track record also dates back to 1992.

To see the list of monthly dividend REITs along with other stocks that pay high dividends on a monthly basis, go to WallStreetNewsNetwork.com. The list can be downloaded, sorted, and updated.

Disclosure: Author did not own any of the above at the time the article was written.

By Stockerblog.com

Top Ylelding REITs

It you think real estate is on the road to recovery, then one of the best ways to invest is through the use of Real Estate Investment Trusts, also known as REITs. These investments pass through almost all their income to avoid double taxation, which is what most regular corporations are subject to, once at the corporate level and once at the shareholder level.

REITs have several advantages over owning real estate directly, including liquidity, professional management, diversification, and avoidance of dealing with tenants directly.

There are numerous REITs available, so you need to do your due diligence, especially checking debt levels. REITs are available that specialize in apartments, commercial buildings, industrial properties, government buildings, medical buildings, and mortgages.

WallStreetNewsNetwork.com has just updated its list of over a dozen of the highest yielding Real Estate Investment Trusts. Yields range from 3% to over 19%, however I don't believe the extremely high yields are sustainable.

Public Storage (PSA) offers a yield of about 3%, and trades at 44 times earnings. This REIT has a narrow focus, owning and operating self-storage facilities in the United States and Europe. The company has a long track record, with monthly dividends paid since 1988.

Another example is National Health Investors Inc. (NHI) which pays a decent yield of 5.2% and has a price to earnings ratio of 19. The REIT invests in health care properties primarily in the long-term care industry. The company has been paid quarterly dividends since 1992.

LTC Properties, Inc. (LTC) which sports a yield of 5.8% and sports a PE of 24, is another long-term care real estate investment trust. This is a REIT that pays monthly dividends, and the dividend track record also dates back to 1992.

To see the entire list of high yield REITs, which can be downloaded, sorted, and updated, go to WallStreetNewsNetwork.com.

Disclosure: Author did not own any of the above at the time the article was written.

By Stockerblog.com

Monthly Dividend Real Estate Companies

A little over a year ago, I predicted that the bottom of the real estate market would take place in November of 2009. There were positive signs in 2010 but as I mentioned in my article, real estate is like a giant ship; it takes a long time to turn, unlike the stock market, which can turn on a dime.

If you think real estate is turning around, there are alternatives to buying a rental house. Alternatives include real estate investment trusts and closed-ended funds that invest in real estate securities. These investments can provide liquidity and income, plus you don't have to worry about being called at 2 o'clock in the morning about a leaky toilet. According to WallStreetNewsNetwork.com, there are several real estate stocks that pay dividends monthly, with yields ranging from 2.3% to 7%.

For example, Inland Real Estate Corporation (IRC), a real estate investment trust that owns and operates shopping centers and single-tenant retail properties in the Midwest, yields 6.2%. The company has been paying monthly dividends since July of 2004. The stock trades at 11 times forward earnings. It just reported lower fourth-quarter results, with funds for operations at 21 cents a share for the quarter versus 23 cents a share for the same quarter last year.

LMP Real Estate Income Fund Inc. (RIT) is an exchange traded fund that invests in various companies involved in the real estate sector. The stock provides a yield of 4.3% which is payable monthly. Dividends have been paid since 2002. The ETF trades at a price to earnings ratio of 3. The stock is currently selling below its net asset value as of year end of 11.07.

To see an Excel list of all monthly dividend stocks including real estate stocks, which can be downloaded, updated, and sorted, go to WallStreetNewsNetwork.com.

Disclosure: Author didn't own any of the above at the time the article was written,

By Stockerblog.com

Top Yield Residential REITs: Why 4.7% is better than 16.9%

In spite of the fact that 30 year mortgages are at the lowest rate in over 50 years, it is still very hard for potential home-buyers to get a mortgage. Lenders require higher down-payments, greater proof of income, and higher credit scores. The free-for-all loans of a few years ago are long gone. So what do the non-homeowners do? If they don't move in with their parents or in-laws, they rent. The best way for an investor to play this opportunity is through residential equity real estate investment trusts, such as Home Properties Inc. (HME).

Of course, there are mortgage income REITs with extremely high yields, such as Two Harbors Investment Corp. (TWO), which yields 16.9%, but I don't think that kind of yield is sustainable; plus, the trust invests in mortgages that include Alt-A mortgage loans, subprime mortgage loans, and derivatives.

However, Home Properties directly owns and operates apartment communities throughout the eastern United States. The stock trades at 17 times forward earnings. The operating cash flow of $151.5 million significantly exceeds its dividend payouts of $87 million by over 70%. Home Properties yields 4.7%, much higher than some of its competitors, such as Apartment Investment & Management Co. (AIV) which yields 1.8%, and AvalonBay Communities Inc. (AVB) which yields 3.2%. On September 30, KeyBanc Capital Markets upgraded Home Properties from a Hold to a Buy.

Another residential equity REIT with a decent yield is Mid-America Apartment Communities Inc. (MAA), which pays 4.1%, and serves the Sunbelt area. The stock trades at 16 times forward earnings. The operating income of $129.8 million greatly exceeds the total dividend payouts of about $80 million. Jeffries recently initiated coverage on the company, giving it a Hold rating.

If you like the idea of investing in residential REITs, you should check out the free list at WallStreetNewsNetwork.com, which includes the stock symbols, market caps, forward PE ratios, and yields.

Disclosure: Author does not own any of the above.

By Stockerblog.com

Highest Yielding Real Estate Investment Trusts

One of the best ways of speculating on real estate is through the use of Real Estate Investment Trusts, more commonly known as REITs. These investments pass through almost all their income to avoid double taxation, which is what most regular corporations are subject to. The REITs have several advantages over owning real estate directly.

First, REITs are very liquid, unlike owning property directly. If you need to get your money out, you can sell it and get your money in a couple days. Second, you can receive an income through dividends. Third, dividends can be received quarterly or even monthly for some REITs, just like rental income checks. Fourth, you don't have to worry about making sure the insurance, property tax, and other expenses are paid. Fifth, you won't get a call at two o'clock in the morning about a leaking toilet. And last but not least, you don't have to deal with evictions.

Although there are hundreds of REITs to choose from, you need to be cautious about which one you choose, especially the debt level. In terms of specialties, you can choose REITs that invest in apartment, commercial, industrial, government building, medical buildings, mortgages, and many other sub-categories.

WallStreetNewsNetwork.com has just come up with a list of over a dozen of the highest yielding Real Estate Investment Trusts. Yields range from 3.2% to over 20%, but I would recommend avoiding any REITS yielding above 7% as I don't believe those high yields are sustainable.

One example, is National Health Investors Inc. (NHI) which pays a decent yield of 6% and has a price to earnings ratio of 16.4%. The REIT invests in health care properties, mainly those involved in the long-term care industry. The company has been paid quarterly dividends since 1992.

Another high yield REIT is LTC Properties, Inc. (LTC) which sports a yield of 6.5% and sports a PE of 20.9 This is another long-term care real estate investment trust. This is a REIT that pays monthly dividends, and the dividend track record dates back to 1992 also.

Public Storage (PSA) offers a yield of 3.3%, and has a PE ratio of 32.8. This REIT has a different approach to the REITs described above, as it owns and operates self-storage facilities in the United States and Europe. The company has a long track record, with monthly dividends paid since 1988.

To see the entire list of high yield REITs, go to WallStreetNewsNetwork.com.

Author does not own any of the above.

By Stockerblog.com

Top Yielding Real Estate Investment Trusts

I personally believe that the real estate market has bottomed out, but it may a couple years before prices start to move up. It doesn't necessarily mean that you should go out an buy a rental house, but there are other ways you can invest in real estate.

One of the best ways of speculating on real estate is through the use of Real Estate Investment Trusts, more commonly known as REITs. These investments pass through almost all their income to avoid double taxation, which is what most regular corporations are subject to. The REITs have several advantages over owning real estate directly.

First, REITs are liquid. If you need to get your money out, you can sell it and get your money in two days. Second, you can receive a decent income through dividends. Third, dividends can be received quarterly or even monthly for some REITs, just like rental income checks. Fourth, you don't have to worry about making sure the insurance, property tax, and other expenses are paid. Fifth, you won't get a call at two o'clock in the morning about a leaking toilet. And last but not least, you don't have to deal with evictions.

Although there are hundreds of REITs to choose from, you need to be cautious about which one you choose, especially the debt level. In terms of specialties, you can choose REITs that invest in apartment, commercial, industrial, government building, medical buildings, mortgages, and many other sub-categories.

WallStreetNewsNetwork.com has just come up with a list of 15 of the highest yielding Real Estate Investment Trusts, none of which have debt to capital ratios more than 25%. As a matter of fact, three of them are debt free. Yields range from 3.3% to over 20%, but I would recommend avoiding any REITS yielding above 7% as I don't believe those high yields are sustainable.

One example, is National Health Investors Inc. (NHI) which pays a decent yield of 5.7% and has a debt to capital ratio of only 7.21%. The REIT invests in health care properties, mainly those involved in the long-term care industry. The company has been paid quarterly dividends since 1992, The total dividend payout is $63.64 million on an operating income of $72.96 million. The company showed an earnings growth for the latest quarter of 5.9%.

Another high yield REIT is LTC Properties, Inc. (LTC) which sports a yield of 6.25% and carries a low debt to capital ratio of 7.94%. This is another long-term care real estate investment trust. This is a REIT that pays monthly dividends, and the dividend track record dates back to 1992 also.

Public Storage (PSA) offers a yield of 3.51%, and has a debt to equity ratio of 5.53%. This REIT has a different approach to the REITs described above, as it owns and operates self-storage facilities in the United States and Europe. The company has a long track record, with monthly dividends paid since 1988.

To see the entire list of high yield REITs, go to WallStreetNewsNetwork.com.

Author does not own any of the above.

By Stockerblog.com