There are some big benefits to that geographic concentration. Most important, management knows its market. That expertise has helped Douglas Emmett capture above-market rates for its properties in many cases, and helped to offset some of the risks of putting all of the firm's eggs in one or two geographic baskets. Now that commercial real estate values appear to be turning the corner in high-demand sections of California, DEI should be able to shake some of the headwinds that have left investors anxious.
It's also positive that DEI has limited exposure to residential space - residential tenants are less sticky and laws are designed to protect tenants much more than landlords. While renting apartments in sought after zipcodes makes DEI's residential exposure more attractive than most, it's best kept limited to less than 15% of the firm's total business.A short interest ratio of 11.6 means that it would take weeks for short sellers to exit their DEI position, a fact that makes this stock a prime short squeeze candidate. To see this week's short squeezes in action, check out the REIT Short Squeezes portfolio on Stockpickr.
Twitter and become a fan on Facebook.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV