commercial loan news

February 26, 2008

REITs May Be On The Verge Of Exploding

SOURCE: Seeking Alpha

REITs are likely to rebound in the next year or so and may prove to be the best investment possible this spring. As the bond market improves, being supported by the Fed, et al, the handsome yields some are paying based on their very low prices will shine through.

US property holding REITs have been hurt by the subprime worries and misconceptions, not by poor returns or bad realty investments. These small companies are not typically personnel heavy and leverage their properties with an average of 50% debt.

To see how well a REIT is fairing, check out the executive salaries and low overhead, as well as the few total personnel numbers. These are good indications of potential performers rather than the negative rumor mills.

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