TSX:WRK.DB.K - Post by User
Post by
daddyMac9on Jan 21, 2010 2:26pm
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Post# 16704788
bought some today
bought some todayI'm fairly new to the REITs but love the past 6 months or so in my other holdings D.un and REI.un. Dundee has been on a tear and its yield is now around 8.5%, so thinking that this normalization should spill to other names in the space. I like to keep an eye on the downside however so otheres comments on main risks would be appreciated:
- commercial RE in US continues to decline, seems likely it'll spill northwards
- rising interest rates. It's all fixed rate mortgages but they will have to refinance in future so that will get priced in
- overall economic/market risk is still fairly high and the REITs have gone up pretty fast
On the upside though when the Trust conversion rules become law in 1 year I suspect there'll be many income investors searching for yield....10.8% looks pretty decent to me...
- D