Patience and REITs: Best of Kass
The names are: Chambers Street Properties (CSG - Get Report), American Residential Properties (ARPI), New Residential Investment (NRZ), Aviv REIT (AVIV), Gladstone Land (LAND) and Cole Real Estate Investments (COLE).
I wrote about COLE yesterday and still want to give that one another few days of trading here, as it has been weak. I do know the company is looking to tender some shares in the $12.25-13 range. This one is worth a look. It operates in the single-tenant retail, office and industrial space.
Another diversified REIT that also just did a tender recently at $10.10 is CSG. This one sits a dollar less than that currently. In the new, single-family REIT space, companies acquiring single-family properties and renting them to individuals/families, there is ARPI and NRZ, a spinoff of NewCastle (NCT). Both of these should offer high dividends, plus a participation in any housing recovering and strengthening. If you are bullish on housing, then these are definitely worth a look.
The last two help with the diversity, with LAND owning farmland and AVIV in the health care space. GLAD does have an outside manager, but one that comes with a lot of experience, while AVIV is in the senior care space, which is probably my favorite. There is a huge growing need and as the population ages we'll see an increasing need. I would anticipate about a 6-7% yield from this group over the next year based on the current prices. This is well above many more popular names we see out there. I am not implementing anything today, but will be looking to start building these next week.At the time of original publication, Collins had no positions in the stocks mentioned.
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