Since REIT prices have begun to fall (in late May) shares have moved closer to fair valuation ranges. Although commercial real estate fundamentals remain sound, Mr. Market continues to value REITs based more on economic data than on true real estate values. For some REIT investors (and value investors) the price fluctuations have created a bargain element that helps cushion the risk of loss while also providing higher risk-adjusted dividend yield options. O), Digital Realty ( DLR), Omega Healthcare Investors ( OHI), HCP ( HCP) and Chambers Street Group ( CSG).
At the time of publication the author held HCP, O, DLR, and CSG. Follow @swan_investor This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.