My 2013 Diversified REIT Portfolio Designed For Outperformance

By Dane Bowler:

As fears of the fiscal cliff subside, the REIT market continues to appreciate. It is approaching the historically high levels preceding the Great Recession.



(Click to enlarge)

While REITs earnings have also been strong, price appreciation has outpaced legitimate growth and REITs have become overvalued. An average price to FFO of 15.77 for U.S. Equity REITs really limits the earnings return on investment for the general REIT investor. However, if we look at individual securities, many opportunities remain which have a strong chance to outperform the market. Presented below is my personal diversified REIT portfolio.

Company (ticker)

Recent Market Price $

Price/2013 estimated FFO*

Yield %

Ashford Hospitality Trust (AHT)

$ 10.87

6.47

4.07%

Associated Estates (AEC)

$ 16.37

12.13

4.63%

CapLease (LSE)

$ 5.61

9.35

5.35%

CorEnergy Infrastructure Trust (CORR)

$ 6.02

Anywhere from 4 to 10**

8.31%

Gladstone Commercial (GOOD)

$ 18.27

10.94

8.17%

Inland Real Estate (IRC)

$ 8.53

9.27

6.68%

Northstar


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