Misc

We've rebranded as "REIT Maven" with a slightly different web address, come see us on the other side!

A "value trap" is when a stock is cheap and it trades at a low multiple for an extended time. The stock "traps" attract investors who are looking for a bargain because the shares look inexpensive. The "trap" springs when investors buy into the company at low prices and the stock price never rebounds

Today the market sent shock-waves across the retail sector after Amazon (AMZN) and Whole Foods Market, Inc. (WFM) announced they had entered into a definitive merger agreement under which Amazon will acquire Whole Foods for $42 per share in an all-cash deal valued at $13.7 billion.

Some retail REIT investors have opted to run for the hills, in attempt to avoid the continued volatility in the sector. While I don’t disagree that there could be more pain ahead, I find the correction a bit overdone, and perhaps an opportune time to plant new seeds.

In the current environment, I believe it pays to be a picky REIT shopper, and that means that investors should not just focus on dividend yield, but to take a more tactical focus on the granular fundamentals of the company.

I just finished up REITWeek 2017 in New York City, and I decided that I would write an article to summarize my collective feelings surrounding the conference and the REIT market in general.

Back in April, I explained that I was "hoping to see positive news on the upcoming earnings call (Q1-17)," and if the company reported "solid numbers, including premium pricing on the vacated customer, shares could rally."

These days I’m not running inside of K-Mart to find the bargains, instead I can see them flashing on my computer screen, as I review the list of Mall REITs that lease space to K-Mart’s parent company Sears Holdings (SHLD).