Also in this playlist...
This transcript is automatically generated
Economic environment but perhaps just as importantly how can you take advantage -- it.
-- -- is green street advisors president.
Play safe -- -- picks are right now and for people who just aren't familiar with reads what makes some very attractive is their dividend correct.
So what does -- an -- in -- growth prospects as well.
So let's let's -- drop on that and really talk about the atmosphere and why it's getting better for reits.
Sure I think -- have a few things obviously have an improving economy and that's a positive and and it drives demand for space.
Whether that be in apartments or whether that be and industrial properties.
Drives consumer spending which is good for retail owning real estate companies and -- same time we've had little new supply added teeth on a commercial real estate -- front.
And part of that is obviously we did have a need for new supply but.
-- been held in check so you've got limited supply he got improving demand and -- driven some pretty good growth and an -- The same time we have a very low interest rate environment so that's you know in a low return world.
-- states -- attractively priced today.
Yeah by the way that that the rates have come down from 11% in February 2009 the worst of moments down about 4% which is about the average right now I think I got that right.
People Warren there are some folks say don't treat a read as a bond it has he's great.
Interest rates and other aspects of -- that some people say are similar but but this is a real estate play the difference though is that the real estate cycle.
Tends to be much longer than the market cycles so even though it is a stock market play since they're real estate has just begun to take off it.
This particular bull market rally correct.
Well certainly -- a real estate is for a remember any office buildings say is comprised of a longer term leases 510 year leases so.
The cycle tends to be drawn out longer than any sort of -- -- market cycle.
We we look at maybe maybe the bond -- stock market but but more importantly I think.
You're you're you're investing.
In a collection of leases that has growth.
-- -- built into the leases through inflation protection if you well.
And at the same time you're signing new leases that are -- you know ever increasing rents at this point and you got occupancy pick up as well so.
The growth characteristics are pretty good for commercial real -- at this point in -- war forecasting growth and earnings.
Over the next couple years of you know an eight to 10% range so not only do you get a dividend yield and the average dividend yield today is about 3.3 percent.
So not only get your current dividend yield but you have growth characteristics as well.
Sold so let's get those growth characteristics into our viewers portfolios with your picks here.
Focusing on two sub sectors let's get to the first one specifically high end -- what are your names here in the space.
Our -- names in space -- Simon Property Group and Taubman Centers they both on very high quality malls.
Generate higher per square foot sales then then most of it since say the average mall.
You know malls are very well positioned they they tend owned a good real estate.
In high quality areas and with Simon and -- being I think the upper end of that group.
You know that behind consumers held up very well we've seen good retail sales.
And we we think that both Simon and -- and are well positioned for up for future growth okay now Craig anybody whose lives -- any major city particularly in New York knows the rents are sky high right now and heard some recent focus specifically.
On rental properties which once appeal to you most.
Yeah Equity Residential would be the one end of the appeals to -- -- but most excuse me.
Mean not only are we seeing good demand for on at ten inside.
And yes -- growth is starting to slow we've had several years above normal growth.
In rants we've seen occupancy gains so it's going to be tougher here to push rants on a look forward basis.
Having said that we still see good growth.
Before the apartment owning companies and in particular act through Equity Residential it's -- largest of the apartment companies.
Me or at this point.
Traded a very attractive valuation in our in our view it's a blue chip Reid.
That's trading at a big had a big discount in fact you can buy Equity Residential today at roughly a 5% discount to -- to its underlying real -- -- It's kind -- good to see you thank you for talking about -- with us and giving us some names Craig -- have a good weekend Greg wells.
Filter by section