Real estate investment trust yields robust rewards despite risk | Armonk Real Estate

-
Sinking money into real estate investment trusts is considered to be one of Wall Street’s most complex investments.
Owning shares of REITs gives investors an opportunity to get investment exposure to real estate, including apartments, shopping centers and office buildings. But they’ve gained a reputation of being risky and confusing — especially after the industry was pummeled during the last real estate crash.
Even Lloyd McAdams, chief executive of Anworth Mortgage Asset Corp., makes no bones about saying his Santa Monica REIT does carry some risk. But it also has given shareholders high dividend yields as the real estate market has recovered.
“The potential magnitude of the risks we have to manage around has been the most daunting aspect of managing the business,” said McAdams, who has been CEO since the company was founded in 1998.
Market shocks have been a challenge for Anworth, whose portfolio holds residential real estate where the mortgages are secured by government guarantees from Freddie Mac,Fannie Mae and Ginny Mae.
Anworth’s stock price has had big gyrations because of the company’s ties to the housing market. The stock at one point traded above $15 before the housing crisis walloped the industry. It now trades for about $5 a share.


Bedford New York Real Estate | Bedford NY Homes by Robert Paul Realtor » Blog Archive » Real estate investment trust yields robust rewards despite risk | Armonk Real Estate

Comments

Post a Comment

Popular posts from this blog

Four Regional Banks Discuss Settlement Over Foreclosures | Waccabuc Real Estate

-
Image
U.S. state attorneys general are pressing four banks to accept a legal settlement over botched foreclosures similar to a deal reached with larger competitors this year, according to three people briefed on the matter. U.S. Bancorp (SFBC) , PNC Financial Services Group (PNC) Inc., SunTrust Banks Inc. (STI) and HSBC Holdings Plc (HSBA) have held talks with state and federal officials who investigated claims that loan servicers mishandled foreclosure documents, according to the people, who spoke on condition of anonymity because the talks are private. U.S. Bancorp Said to Join PNC in Talks on Mortgage Settlement Jeff Kowalsky/Bloomberg Mortgage servicers typically handle billing and collections, as well as foreclosures when borrowers fail to pay. Neil Brazil , a spokesman for HSBC’s North America unit, said in an e-mail that the London-based lender has conducted “preliminary discussions with its bank regulators and other
Read more

Top 20 real estate websites in June | Mount Kisco Real Estate

-
Last year, Realtor.com and Yahoo Real Estate battled it out for the top position in the monthly real estate website rankings maintained by Web metrics firm Experian Hitwise . So far this year, Zillow has been king of the hill, having bumped Yahoo Real Estate from the top spot in March. Jockeying for the spots below first place has also been fierce, with Trulia jumping two positions into second place on the Hitwise list in June. Trulia leapfrogged over third-place Realtor.com, bumping Yahoo Real Estate into third place in the process. AOL Real Estate, meanwhile, moved up two positions from May to June, but there were no new websites in the top 10. The Hitwise rankings don't tally mobile app users, an increasingly popular option among consumers conducting listing searches. But they still provide a window into who's winning the battle for eyeballs -- an important consideration for brokers and agents in deciding where to spend their marketing dollars. According to Hitwise, t
Read more