Silver Bay is also structured as an umbrella partnership REIT (UPREIT), which will provide the opportunity to roll-up smaller players with existing portfolios, the analysts note, which could provide more growth than projected.
Buying into Silver Bay might offer some exposure to rising housing markets.
Of the company's portfolio through September 30, 2012, Phoenix accounted for approximately 31%, Tampa and Orlando 27%, and Atlanta 17% for a combined 75%. Based on data from Case-Shiller, home prices are up a weighted average of approximately 10% for the year in the company's markets, according to the report.
The analysts have a price target of $22 for the REIT, which is 1.2 times its book value and equates to a eventual 2015 dividend yield of 4.6%.-- Written by Shanthi Bharatwaj in New York. -- Written by Shanthi Bharatwaj in New York.
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