REIT Index Yield Soars

[Humanoid]

Originally Posted by killer2021

= I don't think people are going to stop renting apartments, shopping centers, public storage units any time soon.

You joking? Shopping centers are becoming more and more vacant across the country. There are far too many public storage units. Even vacancy rates on apartments are going up due to households merging.

[Nepenthe]

Originally Posted by ndfmnlf

Unlike Citibank, REITS are obligated by law to pay out dividends. Individual REITS may go out of business, but the REIT index should not.

RQI continues to be the biggest loser (not literally) I've seen in some time. I've had it in my watch list after Mr. Ben Stein stated it was a large part of his strategy. At one point today it hit $1.80, which would give you an apparent 100% one year annualized dividend yield without reinvestment (if it were able to be maintained which I doubt it can be). But it looks like the thing is going to continue to penny stock status.

Anyway, what really is the story on this one? Is it a pass-through like SPG or a mutual fund?

Buying opportunity of the century?

Or will they have to drastically lower like DCS recently did?

[jimmyP]

As vacancies start to hit the commercial properties they are going to have a hard time servicing their debt. I view this as negative.

[cdelena]

Originally Posted by killer2021

That is because you bought at the top.
...

Thanks! Is there any investment held this year that was not bought higher?

Reits have been in decline since a peak early in '07 (where I sold most of my holdings) but really dropped off a cliff in Q3 this year dropping steadily through this morning.

Until this recession eases I don't see commercial real estate in the cash so reits may not be a great bet.