Most helpful positive review
6 of 7 people found the following review helpful
Unique primer for little known investment sector
on January 21, 2012
You might imagine that the *only* book devoted to a well hidden, tiny corner of the stock market -- the Preferred stock of Real Estate Investment Trusts (or as they are commonly called: REIT Preferreds) -- would be boring and difficult to understand. Not at all! This is a short, fun book, easily digestible, that gives you pretty much everything you need to know to invest in these little critters.
The book addresses the following questions:
1) What are REITs and REIT Preferreds?
It discusses the types of REITs, their characteristics, their history, and a brief look at how to value them. It then describes where REIT Preferreds fit into REIT financing, and the characteristics of Preferreds.
2) Why are REIT Preferreds good investments?
You'll find a good discussion here of why the credit rating agencies under-rate REIT Preferreds, why these stocks are not followed, and why it's difficult for anyone but retail investors to invest in them. The author gives his judgement as to where your best opportunities lie, as well as some of the tax considerations.
3) What are the risks and safeguards to think about when investing in these securities?
The chapters devoted to risk -- interest rate risk, credit risk, takeover risk -- were the most helpful for me. I found the discussion of each risk and the safeguards to employ to guard against these risks was at just the right level. It was easy enough so that a beginner could understand, but yet contained enough content to keep the more seasoned investor interested.
4) What type of investor is this aimed at?
This book is aimed at active individual investors or investment advisors, not institutional investors or REIT veterans. It asks you to think about your investment goals, your situation in life, and your outlook towards investing as a prelude to absorbing REIT Preferreds into your investment strategy.
5) How do you develop an investment strategy for REIT Preferreds?
The author gives you specific steps for developing a REIT Preferred strategy. He gives some specific examples to help you, including a more in-depth discussion of three specific REIT Preferred stocks, and his own portfolio of REIT Preferreds as it looked at the end of 2010.
I have been investing in REIT Preferreds for about a year now, and I found this book to be very helpful. I imagine it would be a huge help to someone just getting started with REIT Preferreds.