Value or “Turnaround” REITs
If you're a value investor, there are often a number of depressed REITs from which to choose—these are REITs that are selling for low valuations relative to their peers or at large discounts to NAV. Perhaps they're below the radar screens of most investors, they own poorly performing properties, or they've been banished to investors' doghouse due to management's miscues. Or maybe their balance sheets are frightfully ugly. The stocks of these REITs might be excellent short- or even long-term investments if they're cheap enough or if we buy them just prior to a turnaround in their operating prospects or financial condition.
Carr America Realty (which was taken private in 2006) is a good example. This office REIT was ...
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