On Thursday, Dillard's (DDS) announced that it plans to form a wholly-owned real estate investment trust. The company will transfer some of its properties to the REIT and then lease back the properties from the entity. The company said that the move may enhance its ability to access debt or preferred stock and improve its liquidity.

The market is currently pricing REITs at rich valuations, and the transaction will allow Dillard's to better monetize its significant real-estate assets. By transferring these holdings into a publicly traded REIT, Dillard's should be able to unlock additional shareholder value. According to Craig Johnson, an analyst at Customer Growth Partners, "the sum of the parts can be greater than the sum of the whole."

Continue reading Buy Select Retailers on Dillard's Move into REITs

Buy Select Retailers on Dillard's Move into REITs originally appeared on BloggingStocks on Fri, 21 Jan 2011 11:30:00 EST. Please see our terms for use of feeds.

Investors spend most of their time looking for a great stock, anxious to buy one before others discover what they have. But equally important is knowing when to sell or when not to buy a stock. Here are a few red flags that stocks wave, no matter how good their numbers.

Dividends Are Very High. Stocks paying a dividend are a smart part of any portfolio. But when those dividends are much higher than average payments from companies in their industry, that's a problem waiting to happen. For example, if the average payment from the utility sector is 4% and the one you own is paying 10%, most likely the company's in trouble. Investors are selling the stock for a reason, making the dividend go ever higher (yield is: annual dividend/price ... the lower the price, the higher the yield). Sometimes the reasons for selling aren't known but become apparent after the quarterly earnings report. Or an announcement is made such as losing a contract that explains the downward pressure.

Continue reading Comfort Zone Investing: When Stocks Wave Red Flags

Comfort Zone Investing: When Stocks Wave Red Flags originally appeared on BloggingStocks on Sat, 08 Jan 2011 10:30:00 EST. Please see our terms for use of feeds.

Plans. They're something other people make, right? And what's the use of a plan when the stock market is so volatile? You can watch a stock take years to rise well above where you bought it, only to see all that gain lost in a matter of hours. Plans. Who needs them? You do. Especially you.

Investors need plans and discipline more than ever. It's been a tough few years. No one knows how long this recession will last, but having a plan that is almost (nothing is absolute in investing) bulletproof will help you get through the roughest days, weeks, months, even years of turmoil. Here's where you start:

Continue reading Comfort Zone Investing: Do You Have a Plan?

Comfort Zone Investing: Do You Have a Plan? originally appeared on BloggingStocks on Sat, 04 Dec 2010 10:30:00 EST. Please see our terms for use of feeds.

There's a lot of uncertainty in the oil industry right now as the Gulf of Mexico oil disaster continues to wreak political, environmental and economic damage. BP plc (BP) has seen its stock dive 18% in the last month, and the rest of the sector has been fighting against the fallout as well.

But not all energy stocks have been a bust in the last 30 days. There's one oil stock that is up over 11% in that period -- and on top of this share appreciation, boasts a stunning dividend yield of 12.6%!

That high-dividend yield stock is the Whiting USA Trust (WHX).

Continue reading WHX: An Energy Stock with a 12.6% Yield

WHX: An Energy Stock with a 12.6% Yield originally appeared on BloggingStocks on Fri, 14 May 2010 10:40:00 EST. Please see our terms for use of feeds.

Continue reading Chasing Value: Newcastle up 500% -- why?

Chasing Value: Newcastle up 500% -- why? originally appeared on BloggingStocks on Tue, 22 Sep 2009 16:45:00 EST. Please see our terms for use of feeds.

Vornado Realty Trust (NYSE: VNO) has watched its share price get pummeled along with the rest of the commercial real estate sector. But its reasonably strong financial position has left it well-prepared to take advantage of others' weaknesses and get ready for a turnaround.

Now the company just needs some cash. Bloomberg reports that the REIT "is trying to raise $1 billion to invest in real estate assets, according to a person with knowledge of the fundraising."

Continue reading Vornado looks to raise $1 billion to invest in distressed properties

Vornado looks to raise $1 billion to invest in distressed properties originally appeared on BloggingStocks on Thu, 09 Jul 2009 12:40:00 EST. Please see our terms for use of feeds.

Continue reading REITs have a record second quarter: Who saw that coming?

REITs have a record second quarter: Who saw that coming? originally appeared on BloggingStocks on Wed, 01 Jul 2009 15:35:00 EST. Please see our terms for use of feeds.

Continue reading Developers Diversified (DDR) deal signals pain level for undercapitalized REITs

Developers Diversified (DDR) deal signals pain level for undercapitalized REITs originally appeared on BloggingStocks on Tue, 09 Jun 2009 13:50:00 EST. Please see our terms for use of feeds.

Continue reading Time to buy REITs? Maybe, but be careful

Time to buy REITs? Maybe, but be careful originally appeared on BloggingStocks on Wed, 03 Jun 2009 12:30:00 EST. Please see our terms for use of feeds.

Continue reading REITs ready for mergers and acquisitions?

REITs ready for mergers and acquisitions? originally appeared on BloggingStocks on Wed, 15 Apr 2009 15:00:00 EST. Please see our terms for use of feeds.

When the largest publicly traded real estate investment trust (REIT) in the United States speaks, investors listen.

Simon Properties Group (NYSE: SPG) announced in January that it would be paying dividends in stock rather than cash for the current quarter and, presumably, in future quarters. The company's board of directors voted a 90-cent quarterly dividend, with 90% to be paid in stock and the remainder to be paid in cash.

REITs have long been a favorite for dividend savvy investors looking for a tax-advantaged return from the companies in which they invest. The move by Simon Property has stirred unease in the REIT marketplace in general, and for Simon in particular.

Continue reading Simon (SPG) says stock - not cash - for dividend

Simon (SPG) says stock - not cash - for dividend originally appeared on BloggingStocks on Tue, 24 Mar 2009 09:00:00 EST. Please see our terms for use of feeds.

In December when I posted Chasing Value: Annaly Capital Mgmt -- from watch list to buy I was not just recommending Annaly Capital Management (NYSE: NLY), I actually was buying it.This residential REIT buys secured home mortgages, leveraging short term against long term rates.

Continue reading Chasing Value: Worried Annaly Capital investor

Chasing Value: Worried Annaly Capital investor originally appeared on BloggingStocks on Fri, 13 Feb 2009 14:45:00 EST. Please see our terms for use of feeds.

Continue reading Public Storage (PSA): A good play on moving, adjustment to less space

Public Storage (PSA): A good play on moving, adjustment to less space originally appeared on BloggingStocks on Wed, 11 Feb 2009 17:05:00 EST. Please see our terms for use of feeds.

A recent ruling allowed real estate investment trusts (REITs) to take a one-year break from paying out 90% of their pretax income to shareholders in the form of dividend. Instead, some cash-strapped REITs are paying out their dividends with 10% cash and 90% stock.

Here's where it gets really messed up: Those stock dividends are taxed as though they were cash. But the problem is that those stock dividends are really worth nothing because they go to all investors. Stock dividends are the exact same thing as stock splits. The number of shares outstanding increases and the dividend does not increase anyone's stake in the company.

Continue reading REITs screw investors with taxable stock dividends

REITs screw investors with taxable stock dividends originally appeared on BloggingStocks on Sun, 08 Feb 2009 13:40:00 EST. Please see our terms for use of feeds.

There's no doubt that retailers are struggling to stay in business. This is creating a "tug of war" between retailers who are leasing space in shopping centers and mall owners who are also struggling to keep stores from closing and creating added vacancies.

Some mall owners are having to refinance debt coming due to stay open. Just to point out how dire circumstances are, General Growth Properties, the country's second largest mall owner warned that it may be forced to file for bankruptcy if it cannot reschedule its huge debt. On Wall Street, the prices of REIT's (real estate investment trusts) have fallen by 44% during the past year (added: as a Dow Jones index tracking 22 REITS indicates).

Now, on the other side, retailers are trying to renegotiate their leases to lower their overhead. These include such names as Office Depot (NYSE: ODP), Chico's Fas Inc. (NYSE: CHS), Pier 1 Imports Inc. (NYSE: PIR), and The Gap (NYSE: GPS). Some mall owners are helping retailers by lowering "square feet" prices in their leases, while others are saying "no."

Vacancy rates are rising and some analysts are predicting that a growing number of mall owners will default on their mortgages and thereby put additional pressure on our banking system.

Do you own a business in a shopping mall? What are your present circumstances?

Retailers vs. mall owners: Who is winning? originally appeared on BloggingStocks on Thu, 08 Jan 2009 18:00:00 EST. Please see our terms for use of feeds.

• Annaly Capital Management (NYSE: NLY) is one of the stocks mentioned in Fortune Magazines "Ten Promising Stocks for 2009" and is currently paying almost a 15% yield at Friday's closing price of $14.92. The company borrows money at short term rates and only invests in long-term Federally backed mortgages. They have avoided subprime loans and derivatives entirely.

Continue reading Chasing Value: Annaly Capital Mgmt -- from watch list to buy

Chasing Value: Annaly Capital Mgmt -- from watch list to buy originally appeared on BloggingStocks on Wed, 17 Dec 2008 14:58:00 EST. Please see our terms for use of feeds.

"Not all REITs are created equal," notes Richard Lehmann, who looks at the Neuberger Berman Real Estate Income Trust (NYSE: NRO) in his The ETF Trader.

"The decline in Real Estate Investment Trusts (REITs) has been sharp, reacting to the mortgage crisis and the associated financial meltdown. However, here are sectors of the real estate market that have not been affected by the mortgage crisis.

"Such sectors like health care and multi-family projects and self-storage buildings are relatively less sensitive to the economic cycle. In addition, these sectors may have an inverse benefit from foreclosures such as rental properties and self-storage.

"The Neuberger Berman Real Estate Securities Income Trust fund invests in REITs in defensive areas such as health care and multi-family projects. Common stocks of REITs are trading at a discount to the properties they own, a reversal of premiums evident in last year.

"This closed end fund trades at 9% discount to its net asset value. In essence, a shareholder gets a portfolio of REITs that trade at a discount to their real estate value at another discount. In addition to the double discount, the fund yields an astounding 24.89% paid monthly.

"The fund trades at $7.38 versus its net asset value of $8.11. Should the real estate market see a decline, fund holders are doubly protected by the high yield and double discount. The fund's top holdings are Ventas Inc. (5.7%), Omega Healthcare Investors (4.8%) and Nationwide Health Properties (4.8%)."

Steven Halpern's TheStockAdvisors.com offers a daily look at the latest market commentary and favorite stock picks and investment ideas from the nation's leading financial newsletter advisors.

Neuberger Berman (NRO): The right REIT for real estate originally appeared on BloggingStocks on Fri, 05 Sep 2008 12:20:00 EST. Please see our terms for use of feeds.

Self-storage sector not glamorous, just profitable originally appeared on BloggingStocks on Fri, 18 Jul 2008 13:33:00 EST. Please see our terms for use of feeds.

Sheldon Liber is the CEO of a small private investment company and the principal for design and research at an architecture & planning firm. He writes the columns Chasing Value and Serious Money. Disclosure: I own shares of NCT.

Chasing Value: Newcastle announces dividend originally appeared on BloggingStocks on Mon, 16 Jun 2008 15:14:00 EST. Please see our terms for use of feeds.

Invest in student housing the REIT way originally appeared on BloggingStocks on Tue, 26 Feb 2008 18:31:00 EST. Please see our terms for use of feeds.