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I don't know if REITs lose value, although they do get hit initially if their is a move higher in rates. I think if rates eventually move higher, REITs will be like a lot of other things: it will become apparent over time who used low rates to their best advantage and who did not and I think there will be plenty of examples of the latter when this period is eventually over.
I do like triple-net REITs where many of the expenses are handled by the tenant. As for foreign REITs, there are plenty that I like, but I think my issue is that rarely can dividends be reinvested.
Also, I think people are way too concerned about rates rising near-term.
I have wondered about that in the case of bonds. The idea that bond funds lose value as interest rates rise is true but even now fund managers are making changes in preparing for that day. Nothing stands still. The initial response may not be what continues over time.
Scott....thanks for the note on WPC awhile back. It's establishing a firm position in the income sleeve.
Happy to help! It's a looooong-term holding for me and remains one of my largest holdings.
Actually, I didn't even notice this from a couple of days ago:
"NEW YORK, Sept. 18, 2014 /PRNewswire/ -- W. P. Carey Inc. (NYSE: WPC) reported today that its Board of Directors increased its quarterly cash dividend 4.4% to $0.94 per share, which equates to an annualized rate of $3.76 per share. Payable on October 15, 2014 to stockholders of record as of September 30, 2014, this marks W. P. Carey's 54th consecutive quarterly dividend increase. Since going public in 1998, W. P. Carey has paid over $1.5 billion in dividends to investors."
Comments
I do like triple-net REITs where many of the expenses are handled by the tenant. As for foreign REITs, there are plenty that I like, but I think my issue is that rarely can dividends be reinvested.
Also, I think people are way too concerned about rates rising near-term.
Actually, I didn't even notice this from a couple of days ago:
"NEW YORK, Sept. 18, 2014 /PRNewswire/ -- W. P. Carey Inc. (NYSE: WPC) reported today that its Board of Directors increased its quarterly cash dividend 4.4% to $0.94 per share, which equates to an annualized rate of $3.76 per share. Payable on October 15, 2014 to stockholders of record as of September 30, 2014, this marks W. P. Carey's 54th consecutive quarterly dividend increase. Since going public in 1998, W. P. Carey has paid over $1.5 billion in dividends to investors."
http://money.cnn.com/news/newsfeeds/articles/prnewswire/NY16615.htm