Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!

In this Discussion

Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.

    Support MFO

  • Donate through PayPal

REIT ETF or Fund

edited April 2013 in Fund Discussions
I am looking for REIT investment option to further diversified the portfolio.

Are there any funds in this niche which are consistent and have delivered consistent above average returns over the long term ?

Thank you

KP

Comments

  • beebee
    edited April 2013
    Hi K,

    PETDX...Its strategy is a bit esoteric (its uses derivaitives) compared to say an index REIT like Vanguards VGSIX or VNQ. I own both.

    Here's a good review of PETDX:
    fundmojo - PETDX
  • edited April 2013
    PETDX is definitely an aggressive choice. KIFAX, RREIX and FRIFX are balanced real estate funds, which I like. The Baron Real Estate fund would be another aggressive, and somewhat outside-the-box (as to what it considers "real estate") fund.

    I like real estate, but I primarily have specific investments, such as WP Carey (WPC), which I consider a long-term holding. O (Reality Income) I don't own, but that's an interesting name - O is a net lease REIT w/monthly divs.
  • beebee
    edited April 2013
    Reply to @scott:

    Thanks Scott,

    VGSIX is a larger holder of these two high dividend payers...I came across an interesting article as to the correct methods to use when elvaluating REITS.

    what-are-all-the-financial-ratios-to-evaluate-an-reit?

    Using FFO (Funds From Operations) as a measure:
    FFO as a REIT Tool

    What do you use as criteria to evaluate individual REIT choices you buy and hold?

  • edited April 2013
    Reply to @bee: I think for me it's a number of things - FFO is an aspect, but I find particular themes compelling or find interest in a particular business/niche. I particularly like the triple-net REITs, but WPC is the one that I have as a long-term holding due to its diversification, mild overseas exposure and income from asset management. O (Reality Income) is the other major triple-net company; both have been around for decades (although not all as public companies.)

    http://en.wikipedia.org/wiki/Net_lease#Triple_net_lease

    WPC Presentation:

    http://ir.wpcarey.com/Cache/1001174372.PDF?Y=&O=PDF&D=&fid=1001174372&T=&iid=4054624

    I also own Canadian Apartment Properties REIT, which pays a nice monthly dividend given the Canadian property market I think rental demand will continue. WPC and Canadian Apartment REIT are really long-term holdings.

    I have considered Reality Income and Vornado, but I really don't see buying anything new at all for the remainder of the year.

    I'd recommend a fund for most people, but personally, I've gone primarily with individual because I like specific things and am not particularly fond of certain REIT sectors (retail, aside from maybe SKT, although I don't own that.)

  • Thank you all for your comments/recommendations.
Sign In or Register to comment.