Real Estate - RYN!!! - ARE!!!
This is an interesting sector. The world loves 5% yielders when rates are 1%, but hates them when rates are 5%. Not surprisingly I am just the opposite. Right now I think there some interesting ideas in this sector. I hate the REIT structure, but it does keep companies disciplined.
Rayonier - RYN - $26 is a solid idea. I have heard the property development story from the timber companies for 30+ years, but I think RYN has finally succeeded in executing a viable strategy. I have visited both of their real estate sites, and I am impressed. The new CEO is a former investment banker, and I think he has a clear plan to improve the stock price. You get 6% while you wait.
Alexandria Real Estate Equities - ARE - $97 is a stock I wanted to own for a long time, and now the price is right. Half of the new drugs developed in the last 10 years have come from clients of ARE. This is a unique business, and ARE is very good at it. You cannot do lab work from home. While general office space is a disaster, good lab space is still relatively scarce. You get 5% while you wait.
It is time for value investors to step up on this sector. I just like these stories better than utilities. I just find it hard to trust the regulators in this environment.
These are a few more to think about:
Cubesmart - CUBE - $43 - smart guys, 5% yield
Howard Hughes - HHH - $77 - will Ackman buy the whole thing, Arizona water rights still an issue??
Sun Communities - SUI - $124 - trailer parks and marinas, 3% yield, Wall Street will never understand
Empire State - ESRT - $10 - dividend already cut, maybe their NY space is ok??
Starwood Property - STWD - $19 - Sternlicht always worth listening to, 10% yield, I am to chicken to ever own this, but I am watching
VICI Properties - VICI - $29 - casinos, 6% yield
Lamar Advertising - LAMR - billboards, 4.5% yield
Weyerhaeuser - WY - $28 - Rayonier is better at real estate development