REITs

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VFAhub
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REITs
« on: April 04, 2020, 07:23:06 PM »
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Group hi,

I just want to bring your attention to a potential winning sector in May, which is REITs !

Firstly, as an investor, I am fancying SPG in the US and URW in the EU, avoiding ETFs and smaller vehicles with market cap below 5billios.

Why investing in REITs makes sense in April ?
1) they have been beaten down badly, similarly to Airlines, now trading at with enormous discounts Vs their asset value.
2) all REITs are fundamentally benefiting from a low interest environment, which is here to stay. For those following this sector, you may see that it dropped, while Fed started - unsuccessfully - to decrease its balance sheet.
3) in the world of negative interests, REITs can offer substantial better returns in the forms of dividends.
4) if you dig deeper into "who is behind REITs" you will find some of the world's most strategic investors.
5) Retail & Malls will be on the spotlight in May, when people will go out of their caves.

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Alfa1234
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Re: REITs
« Reply #1 on: April 04, 2020, 08:30:13 PM »
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https://www.fool.com/investing/2020/04/03/heres-why-mortgage-reits-are-plunging-on-friday.aspx
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arbusers
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Re: REITs
« Reply #2 on: April 05, 2020, 06:05:56 AM »
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The key question to be answered before investing in REITs is what are the cash reserves. As we are in a global recession with no easily predicted end, companies will have to use their cash reserves. REITs are not considered important for national security like the airlines and the oil industry. Some might go under.
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VFAhub
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Re: REITs
« Reply #3 on: April 05, 2020, 11:06:13 AM »
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Hey Alfa,

The content of the article is not connected to title...
Strictly speaking my pick and one of the most respectable REIT out there - SPG - was 5% up on Friday  ;)
All it says is that REITs have suffered lately, which is common sense.

Re cash balances, please bear in mind that REITs have very low burn rate. It's real estate !
Their highest cost pool is financing and it's going even lower.

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CharlieSheen99
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Re: REITs
« Reply #4 on: April 05, 2020, 01:27:40 PM »
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About properties, in the next years, we will see some good oportunities to buy properties.

In 2008 crisis, property prices went down till 2013-14 aproximatly, and lost 40-50% of its 2008 value.

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