Sunday, December 9, 2012

Public Storage REIT

I am not interested in this REIT at all. Their are many more REITs out there that do not have as many risks as this REIT does. Think about it. In this economy people are more worried about their own house or business then paying for a storage unit. I don't think that people when the economy is down are going to go purchase a storage unit. They are probably going to selling some of their belongs before they decide to pay a month fee to store them.

Even though the Public Storage REIT shows good numbers and is a good way to make some revenue, I am not interested in it at this time and economy.

HCP, INC

This REIT consists of mostly Senior Housing, Skilled Nursing, and Medical uses. This is a positive REIT I think because we are always going to need this kind of Real Estate. Our generation is projected to live until we are 120 years of age. That is 20 years longer than the older generation of today. That is a lot more elderly people int eh world that will need attention.

HCP real estate has a long term as well for their contracts. I personally like that compared to the apartment industry like ACC in my past Blog. Long- term contracts will help with budgets and just a little less stressful then normal.

This REIT did not catch my attention as much as the other ones discussed in class, but over all it is a positive earning REIT and can diversify someones portfolio a lot.

Thoughts on Weingarten

When watching all of the REIT presentations in class, this REIT is what got me excited about investing in a REIT. This is a well diverse REIT and has every thing in the right order. Weingarten has the goals of having growth in the same property NOI, accretive investment in both acquisitions and new development, growth in FFo and NAV, and to have continued improvement of their strong BS. I like their goals and their strong sense to follow those goals in the past years comparing the data given in their presentation.

I am all for new opportunities and individuals that start up their own business. Weingarden was a immigrant that came to America for a new opportunity. This is a family business and is located in Houston.

I am interested in this REIT because they look into High Quality Assets in high growth areas with high barriers to entry. They are in an area with huge population densities and are geographically dispersed. They have picked the right locations and have done their research in to where to buy their properties.

They are well diverse in the tenants that they have as well. They occupancy on average is high with the past year being at 94.6%.

All of there ratios are well and number look good in the past and in the future. I will go with this REIT as well.

My thoughts on ACC

Currently, I am a leasing agent here in College Station for an apartment complex called The Lofts at Wolf Pen Creek. I have been working with property management groups for a few years now. I enjoy the industry even though it is a bit stressful at leasing times. You can be 100% occupied one year and only 83% occupied the next year in a college town that has a marke that is oversaturated.

The management group of The Lofts is not a Real Estate Investment Trust. It is a small group out of chicago that only has 5 properties in Texas. They currently have 14 properties in the United States. They are planning on tripling in size by 2014. This management group is just now aquiring large assets. They do not only manage the properties but also own the property as well. As an employee of this business, that is a plus. If you have a different owner than the management, then problems can occur if not organized well enough.

This reason why I started it off like this is because we went over a REIT called American Campus Communities. I am well aware of this REIT becuase I used to work for this company when starting out in the apartment leasing business. They are a pretty well managed company and they have some of the best apartment complexes here in College Station. When people are looking for an apartment complex they are looking at the location, place, and atmostshere of the apartments as a whole.

ACC is a well REIT and I would invest my money into it so I can have a well diverfied portfolio. Calloway House, Calloway Villas, Aggie Station, and U Club Townhomes always have high marketing percentages year after year. If they keep up the same pace as the other 5 years that are behind them, my money would be in ACC REIT.