Several years ago i purchased shares in NYMT,AGNC,ARR and NLY.
i have since sold ARR and NLY,
I am amazed at the hate directed to AGNC by Barrons and Motley Fool.They rubbish it every chance they get.As for myself i will keep holding.
The AREITs have stonked on the whiff of interest rate cuts, no doubt the US ones have too. I was greedy and loaded up over the last couple of weeks, locking in 7-8% dividend yields, and a big share price rerating as cap values normalise to lower rate levels.
Many of the REITs are trading at substantial discounts to their book values. GOZ for example, is trading on a price to book of 0.6. While they are all booking statutory losses as the property values are reduced (GOZ -4.7%) there is still probably a large gap to close. Or the commercial property market is seriously going to tank - place your bets accordingly lol
But the big discount to book value might make for some interesting M&A activity over the next while.
Quote from: KW on Dec 20, 2023, 12:19 PMMany of the REITs are trading at substantial discounts to their book values. GOZ for example, is trading on a price to book of 0.6. While they are all booking statutory losses as the property values are reduced (GOZ -4.7%) there is still probably a large gap to close. Or the commercial property market is seriously going to tank - place your bets accordingly lol
But the big discount to book value might make for some interesting M&A activity over the next while.
Quite similar to the REITS closer to home - pick your favourite retirement village (RYM, OCA, ARV - or (shudder) - SUM :) - yes, they are REITS as well) or the real thing like ARG, KPG, ...).
While I don't expect any of them to rocket, I expect them to move in inverse correlation with the interest rates ... for most of them combining the pleasant (capital gains) with the useful (dividends);
Discl: holding most of them;