Comments on: “The Teflon REIT: Bad News Doesn’t Stick”

By: maregal

maregal — Sat, 13 Dec 2008 21:15:46 +0000

Hi Travis Love the site. It certainly brings a very rational view of the market offerings currently being hawked. Thanks so much for all of your good work!!
As to O: Have had it for several years and appreciate the way it is run. Also have KIMCO. Both have suffered in this market climate, KIMCO being far the worst. I will continue to hold both for now, but am always on the lookout for new stocks. Thanks again for all your hard work. Maregal

By: jeff

jeff — Sat, 13 Dec 2008 16:30:53 +0000

henry thank you very much for the info,Jeff

By: Gukdorak

Gukdorak — Thu, 11 Dec 2008 20:55:50 +0000

O took quite a tumble today. Not sure why. Maybe because the Senate is being obstinate in bailing out the auto indutry.

By: StockGumshoe

StockGumshoe — Mon, 08 Dec 2008 20:02:09 +0000

OUI is the debt, not the equity — and I think that listed debt was actually just retired this month or last. You can still by O debt, but note that the dividend will never rise, whereas they try very hard to steadily increase the equity dividend.

By: Gukdorak

Gukdorak — Mon, 08 Dec 2008 19:34:56 +0000

I am a big fan of O and have been for sometime, their meticulous and conservative underwriting of projects being one of the main reasons.
The other reasons were management transparency, their solid balance sheet and the fact that their tenants were spread across a large number of companies operating in different domains.
I also like the way their deals were structured since they are all triple net leases with no profit sharing. So a fall in their underlying tenants sale will not affect the cash flow being received. That said the main danger is for one of their tenants to declare bankruptcy or to what to shut some of their worst performing units, the latter being less of a concern due to O through vetting process. As you mentioned the dividend payout is getting awfully high by historical standards to FFO. I don’t believe that the divided is going to be cut and I believe their will be some token increase every quarter. For long term investors this might be a pretty good entry point but like anything it might still go down in 2009.