RE:RE:If you don't buy at today's level, you are really stupidmnztr wrote:
that is what I am contemplating. What is the highest yield this has been at? Have they ever cut their divvy? I know they can pay it, but sometimes they will cut anyway.....
For background purposes, I've been a loyal owner of D since shortly after it originally went public. In those 10 years, they have raised the distribution once and they have never cut it. The units got hammered during the financial crisis. I picked up a few more units then at a price of $10.50 per unit. They were yielding over 20%. The current yield doesn't disturb me and I added a few more units to my portfolio at $26.50. I have confidence in management and I think they own some terrific assets. While I understand the financial implications to higher interest rates, would it not also give REITs an opportunity to raise rental rates? Clearly, REITs are going to have to pass off the higher interest costs to the tenants. That's what happens in other industries when the prices of raw materials, etc... Fluctuate. I can see how rental rates won't immediately increase, but as renewals are renegotiated after interest rates go up, I would think rental rates must increase in the long run.
GLTA.
Marc