Investors should avoid investments in mortgage real estate investment trusts that have a large exposure to subprime lending and office REITs that have assets in areas with high vacancy rates, according to a senior analyst at Zacks.com, Chicago.In an interview circulated by the company, Greg Sukenik said yields for mortgage REITs are attractive, but that "we think things could get worse, and there is the possibility that many subprime lenders will become insolvent." He cited in particular New Century, which he described as one of the larger subprime lenders that Zacks has downgraded to Sell. New Century will "make it through the current downturn, but we expect a large dividend cut in 2007," Mr. Sukenik said. Regarding office REITs, the analyst said coastal markets are "performing much better" than those in the Midwest and the South. "We tend to favor REITs that have hard-to-duplicate urban properties in large cities, like New York, Boston, and San Diego," he said. Office REITs with assets in areas that have high overall vacancy rates should be avoided because rent growth is "very difficult" in such markets, Mr. Sukenik said. He cited Liberty Property Trust as an office/industrial REIT rated Sell by Zacks that "has trailed peers" in funds from operations growth in recent quarters. Zacks can be found online at http://www.zacks.com.
-
Doxo plans to fight the FTC complaint, which focuses broadly on consumer finance, but there are signs of confusion about the company's role in mortgages too.
2h ago -
Members of the LGBTQ community were most likely to have experienced housing bias, according to a Zillow survey, which also found many people don't recognize how fair lending laws could help.
2h ago -
Senior executives making over $151,000 would still be subject to such clauses should the rule go into effect this year.
3h ago -
Christopher J. Gallo and his aide, Mehmet A. Elmas, allegedly withheld information in mortgage applications, hiding that borrowers were purchasing second home properties.
4h ago -
Mortgage rates rose 7 basis points this week, Freddie Mac said, and more increases are likely following a weaker than expected gross domestic product report.
6h ago -
Independent mortgage bankers lost the most money ever on every loan originated last year due to higher rates and lower volumes, an industry trade group said.
6h ago