mREITS Investments
  • I'd like to get the discussion going on mREITS and REITS in general now that the 10-year rocketed to 2.8% and dividend and mREIT stocks are getting crushed again. They seem to have found a base and names like O and ANLY look quite interesting.

    Let's make this a dedicated thread. I see opportunity for 20-30% upside over the next year as we come to terms with Fed tapering by end of 2013.

    Let's discuss!

    Sam
  • What does that mean? Can you please explain what this is?
  • @hvgotcodes Go to Google and search Reit stocks, mReit stocks, and then search Google Finance and look up some of their information using their ticker symbols. This should give you what you need.
  • This link: http://www.valueforum.com/reits/high-yielding.mpl lists the REIT and mREIT stocks by annual yield and seems to be updated. I like the high annual yields. With ARR and AGNC yielding close to 20% still... It's hard not to bite right now. I've made the mistake in the past buying in too soon. But I feel if the companies will last for a while (10 years or more with decent yields), then it's a good bet to get in as the dividends alone will match the stock price.
  • O is interesting because they've increased dividends over time instead of the other way around. @Sam, did you mean NLY instead of ANLY?
  • Forgive me for my investing ignorance, but this would be a bet that the 10 year will come back down to ~2.0%?
  • Are mREITS directly tied to the 10 year yield? Or do they have the capacity to adapt their income to handle higher treasury yields?
  • @JeremyNoelJohnson I'm still learning, but it looks like the answer to your question is yes. mREITs are directly related to the 10 yr yield: http://static.cdn-seekingalpha.com/uploads/2013/8/14/699472-13764567283007464-CorvetteKid_origin.jpg
  • That is an interesting chart - I wonder if the dividends must also go down as the 10 year yield goes up. And I wish I understood more about their spreads and how their income is affected by the 10 year yield. Because their dividend yields are so much higher than the 10 year yield, it seems people would jump at the chance to earn some of the 15 to 20 percent yields the mREITS have to offer right now.
  • mREITS continuing to get beat down. Some are at a 25% dividend yield. The question is, how low and if the 10 year yield gets high enough, will they go to 0? If not 0, and these keep going down, the yields are going to get crazy. Something like ARR, a monthly dividend paying mREIT is yielding over 21% right now: https://www.google.com/finance?q=NYSE:ARR&ei=iTkSUviuDeu0iAKrGQ
  • Reply to @JeremyNoelJohnson: It seems like the overarching theme is that it doesn't matter how much the mREITs yield, if government bond yields are rising this sector is going to underperform.

    I do wonder what happens when we hit 3% on the 10-year yield. I think the stock market is not going to do anything for the rest of the year at this level. Easy money has been made.

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