The REIT in defeat

Article Abstract:

Real Estate Investment Trusts (REITs) maximize shareholder value by maximizing stock appreciation and dividends. REITs also maximize shareholder value by reducing operating and capital expenses, optimizing leverage by average amounts of debts and efficient utilization of assets. REIT's values are negatively affected by declining real estate values and the securitization of real estate results in a biased hold-versus-sell strategy for shareholders. Privately-owned or managed REITs have a 25% discount to market value based on the evaluations of the balance sheet, revenue and expense factors.

Prices and rates, Stocks, Stock prices, Valuation, Real property, Real estate appraisal

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REITs: another case of musical chairs?

Article Abstract:

Real estate financial experts warn against having a thoroughly optimistic view of real estate investment trusts (REITs). Like other investments, they are prone to boom-and-bust cycles and are not new since they were invented some 30 years ago. REITS became very popular in the early 1970s when mortgage REITs were able to borrow money at rates lesser than their investment rates. The REIT industry first fell in 1973 when high interest rates and the recession resulted in the decline of REIT stocks.

Finance, Real estate industry

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Mortgage REITs come of age

Article Abstract:

The mortgage real estate investment trust (MREIT) has experienced a profound transformation and rebirth in the 1990s and there are 23 publicly traded MREITs as of 1997 with a combined capitalization of more than $6.3 billion. MREITs enjoy a number of advantages and have proven to be increasingly powerful players in the lending business. Investors generally ought to view these firms as yield plays with growth potential but should be aware of the different business risks MREITs confront.

Real estate mortgage investment conduits

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