Anyone have REITs as investment /dividend income ?

[Mr Nice]

I know REITs are affected by interest rates... and pay nice dividends.

Any BITOG like REITs as an investment ?

 

[makiman]

BDCs. A similar type of regulated investment and probably the best way to play with the big boys in private equity.

 

[jimbrewer]

I have a REIT mutual fund right now and in the past I've owned individual reits. There are two kinds you know, the kind that invest in mortgages and the kind that invest in property. I assume you are talking about a property REIT.

Overall, I think they are OK investments for a retirement fund. Double tax advantage and all. I've never been burned by one, but I was always careful to buy cheap. Most people have enough exposure to real estate by owning a house, so it's not like its required for diversification purposes.

They clearly don't do as well as direct ownership of real estate, I think because of the lack of leverage in a REIT.

 

[m37charlie]

Yes I have some in my portfolio. they pay decent returns (4-5%) due to the upside being limited. About 6% of what I hold.

Charlie

 

[JHZR2]

Yes I've had some and I have some.

reits see different pressures from both rising interest rates and stagnant conditions as well. They can do well, yield well, but can also lose value quick.

If they're not yielding well at an 80% valuation, they're probably not good values. But they also get priced like tradeable bonds, where a possibility of rate rise will drop book valuation, despite the portfolio contents, or at least that's how it appears to me...

 

[Pop_Rivit]

Yes, as part of a well rounded, diversified portfolio they can be a good investment. As a stand alone investment they can be very volatile.

 

[pitzel]

Every time I look at them, they seem dramatically overvalued. To the point where I can buy common stock business earnings for as little as 1/3rd as much.


They may have been good things to buy for diversification into RE, but only when the prices were dramatically lower.