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Help me understand this REIT.

Old 05-31-2018, 08:52 AM
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Default Help me understand this REIT.

https://finance.yahoo.com/news/easte...104316994.html

Ticker is DEA

I'm in a search for a stable dividend producing investment vehicle to serve as a place to park mid term money. Basically, were do I put money I might be needing to some degree in the next 1-3 years and get a decent return. This would essentially be a savings account for money not in stocks / mutual funds but not immediately needed. Essentially a staging place for funds moving in either direction. I do own a few others but this one caught my eye. The upside is it rents property back to the government with long term aka 20 year plus leases. It claims to be the only publicly traded company to be doing so. This seems like a reliable and stable way to make money. The Dividend is a bit over 5% and has a upwards trend to pricing. I have been reading up but I'm still not clear on valuation and cash flows with REITS. Any insights?
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Old 05-31-2018, 09:03 AM
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https://www.forbes.com/sites/bradtho.../#6dbf84686077 Brad is one of the best REIT analysts. One thing though is that REITs tend to lose value in a rising gate environment at least for a while.
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Old 05-31-2018, 09:07 AM
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Originally Posted by mitchk View Post
This would essentially be a savings account for money not in stocks / mutual funds but not immediately needed.
Presumably you don't want to put this money into stocks because they are volatile. This REIT is going to be volatile as well. If you think that stocks/mutual funds are too risky for this particular purpose, the REITs are going to be too risky, too.
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Old 05-31-2018, 09:31 AM
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Originally Posted by Drako View Post
Presumably you don't want to put this money into stocks because they are volatile. This REIT is going to be volatile as well. If you think that stocks/mutual funds are too risky for this particular purpose, the REITs are going to be too risky, too.
How much is this offset by them only doing long term government leases such as VA buildings? This is the part that to me would provide a low Beta.
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Old 05-31-2018, 09:40 AM
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This REIT trades at around $20, its range for the past year (high - low) is about $3.30, so something like 16%. The stock is down for the year so far.

You need to figure out your risk tolerance and express it in some measurable metric :-)

Last edited by Drako; 05-31-2018 at 11:10 AM.
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Old 05-31-2018, 10:46 AM
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That is not the only REIT with GSA tenants for the record.
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