I wish I would have waited. Against the advice of several posters on this forum, I bought CSRIX 3 weeks ago. I'm down 12.71% in 3 weeks.

I won't be adding to it since I am at my target allocation.

Whoops!  I just checked the closing price of VGSIX (Vanguard REIT Index Fund) and it's up 6.63% today.  Looks like it's too late for me to rebalance by purchasing more shares of VGSIX while the price was "low".  Can't win them all!  Who knows what tomorrow may bring?

VNQ rose 7.46% on massive volume of 4,736,168 shares today vs. average daily volume of 710,752.That looks like institutional buying rather than retail investors. Counting today's gain, VNQ has returned -16.13% in the last 18 months. Do you think REIT funds have bottomed out or are the hedgies just hungry for new money after taking profits in commodities?

Absolutely awesome book.  Everything you want to know about REITs and its different sectors.  Some of the tidbits I learned, I had also read right here on this forum, and only here.

Brian

I've been happily buying DDR for the last month or so, now yielding about 8%, with Josh Peters projecting 7% growth in the divvy.  The payout ratio is low and I really like the idea that their largest tenant is Wal-Mart.  I think Wal-Mart will keep paying its rent :)

I've held O for quite a while.  It's been up, down, and all around.  Right now, it's down again, and I'm considering buying some more.  O is the only REIT I own now, but I am following some others if they'll ever find a bottom.

Looking at various threads, there are several items that are draining off their dividends, or at least considering it.  These are definitely tough times, but my guess is O would be the very last company to drop it's dividend.  It's focused its whole approach around that dividend. 

If O ever does follow the crowd and dump its dividend --- run, don't walk away!  The whole market is toast, and there's no place to hide!

Since I keep telling myself the market will come back again this time, just like every other time in history, I'll let some reliable dividends soften the rough edges.  But I still feel like pulling out what little hair remains 2 or 3 times every day!  

Zwilnik

Be mindful, there are REITs and then there are REITs. It depends on what you're looking for.

Retail right now is taking a beating. KIM and O are two examples. These REITs will be the most sensitive to a recession, as they rely on their Mall's or franchise retailers being able to pay their rents.

On the other end are storage and health care, which tend to be recession resistant, but this seems built into the share price.

Right now, the hot discussion over at the Motley Fool REIT board are REIT preferreds, of which many now are at fire-sale prices. But then, these carry their own unique risks.

BruceM

I don't know how important it is to you to receive your dividend monthly, rather than quarterly like most US corporations. But if the _amount_ rather than the frequency of payment matters, I don't know why anyone would be buying O rather than GKK. If GKK is forced to cut its dividend in half AND issue 10 million new shares of stock to help pay down its debt, its dividend will still be almost 50% higher!

What's wrong with this picture? 

VNQ gained +7.46% yesterday, but lost -6.47% today. At the crack of dawn today on Yahoo! Finance, I noticed unusual trading activity in UltraShort Real Estate ProShares (SRS), which gained +12.87% today. I hope folks avoided this bear trap.

Aalan,

It hard to tell if your serious or not.  Your kidding right?

Like Bruce said, theres REITs and then theres REITs.

What the heck do I know, just a newbie trying to learn.

Brian

Vanguard's REIT index fund is pennies from its low earlier in the year, and close to a 3-year low. Most valuations in REITland look okay to me.

Another triple-net REIT worth considering is NNN. It yields more than 7% and trades at about 10x FFO. For what it's worth, Moody's recently upgraded its debt. It's raised the payout each year for 18 years.

Although lower yielding, I like SPG and PLD for their expanding global footprints. At about 13x and 10x FFO, respectively, they are buyable here, IMO.

Don't get hung up on the frequency of payments. The vast majority of US corporations make dividend payments quarterly.

Regards,

Duane

djwdjw:

Has the reason changed why you purchased VGSIX in the first place?  If the reason is "no," then you would be purchasing more of it for less.  Money can be made when one buys a good stock or fund on "bad news."  (Good news means you will likely pay more for the fund, and you are late to the party anyway.)