Investment

» retiredinprescot - YTD, June 2007

In response to YTD, June 2007 posted by Happy_2:

Hi Happy_2,
I'll give you a couple of examples. We purchased CNL Hotels and Resorts REIT in 2003. We were getting 6% annual dividends paid quarterly. We reinvested those at a 5% discount. In 2007 the REIT was acquired and we were paid a few percent more than the NAV.
So we made our 6% annually plus a small bonus.

We also had CNL Retirement Properties REIT which I consider to be a "home run". It too was acquired by another entity at a 20+% boost in NAV. It also paid 6% dividends while we held it.

This year our WELLS REIT matures at the end of the year. We have been getting solicitations to sell our shares to other concerns at ever increasing values above the NAV. I expect that we will probably get 10-20% above the fixed NAV plus we have gotten 5 years of 7% dividends.

I don't know if these results are typical as the commercial Real Estate market has been particularly good the past few years.

We recently rolled over our REIT money from the matured REITS into a new CB Richard Ellis REIT which is buying commercial properties all over the world, not just in the US. It is a bit more aggressive than the others with potential for more price appreciation at maturity down the road (perhaps 10 yrs?) but a smaller 5.5% dividend while you wait. Like I said, I look at these as supercharged bonds; not as a replacement for equities.

-- posted by retiredinprescot