Like the other two REITs, Boston Properties was also prospering as the company started as a REIT (IPO in 1997); however, like the others, Boston Properties was hit by the Great Recession. As the FAST graph illustrates below, Boston Properties hit a high of $126.09 in January 2007 and then fell to $37.09 in February 2009. However, since that time, the office REIT has clawed back a substantial part of its share price (closed at $109.75).
Boston Properties' dividend (shaded aqua-blue area) has not recovered to the $8.70 per share it paid out in 2008. The current dividend yield is 2.37%, and Boston Properties is deemed expensive with a current P/FFO ratio of 22.0.
Courtesy of F.A.S.T Graphs
Empire State Realty Trust Getting Closer to REIT-domIt appears that the ownership group Empire State Realty Trust is moving closer to its IPO by securing the necessary 80% of investor votes needed to form a new publicly traded REIT made up of the iconic 102-story tower and 17 other properties. The managing partner and one the largest investors, Malkin Holdings, plan to use a forced provision to take full control of the new REIT. As upheld by a New York State Supreme Court judge, investors can now either sell their shares back for $100 or vote in support of the IPO. It appears that timing could be good for the Malkin family and investors. A few offers have been generated for individual portfolio assets, and it appears that the value of the new REIT shares will be a crucial element for the upcoming listing. The Malkins are fiduciaries for their investors and, as such, they are responsible for ensuring that the value is realized, either in a public or private sale. Given the success of New York City's impressive real estate recovery, I'm ready to sink my teeth into a "Big Apple" REIT. I hope to find a more attractive entry point than the three other REITs and better yet, a higher dividend yield, so that I can use the investment to fund my hotel and taxi fares (which are going through the roof). One thing's for sure, when I go to New York City I can spend those dividends in a "New York minute." Remember, this article is intended to provide information to interested parties. As I have no knowledge of individual investor circumstances, goals, and/or portfolio concentration or diversification, readers are expected to complete their own due diligence before purchasing any stocks mentioned or recommended. At the time of publication the author had no position in any of the stocks mentioned. Follow @DanaBlankenhor Follow @swan_investor This article was written by an independent contributor, separate from TheStreet's regular news coverage.
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