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Page 2 of 212
Subject: REITs

A Real Estate Investment Trust or REIT (pronounced /?ri?t/) is a tax designation for a corporation investing in real estate that reduces or eliminates corporate income taxes. In return, REITs are required to distribute 90% of their income, which may be taxable, into the hands of the investors. The REIT structure was designed to provide a similar structure for investment in real estate as mutual funds provide for investment in stocks.
Like other corporations, REITs can be publicly or privately held. Public REITs may be listed on public stock exchanges like shares of common stock in other firms.
REITs can be classified as equity, mortgage or hybrid.
The key statistics to look at in a REIT are its net asset value (NAV), adjusted funds from operations (AFFO) and cash available for distribution (CAD). REITs face challenges from both a slowing economy and the global financial crisis, depressing share values by 40 to 70 percent in some cases. (Wikipedia Feb 2010)

The coming devaluation

Inflation and the lure of REITS

San Francisco real estate

Real Estate Investment Trusts were beaten down by the Crash of 2008. However, in anticipation of an inflationary environment, we note that REITs are selling at significant discounts. This situation may present opportunities in an inflationary environment.

However, REITs are tricky and risky. Investors should consider doing their own research when venturing in this market.

Q1 2006

Trade deficit continues to support bonds

Foreign Purchases of US Fixed Income Securities

In Q1 2006, the excess of US imports over exports continued to provide dollars to the rest of the world, which were invested in the US bond market.

Although foreign central banks reduced flows into US treasuries and agencies after the high point of 2004, the shortfall has been more than covered by flows into bonds from foreign private sources. The driving force behind foreign purchases of US bonds is not so much related to interest rates as to worldwide neo-mercantilist impulses to favor exporters.

Baby Boomers

The productivity vs. population debate

Will she buy his shares?

The ‘Baby Boomer Bomb’ refers to the expected effect of the retirement of the Baby Boomer generation on capital markets, particularly equities. In 2006, this issue was debated at the Milken Institute, and two solutions to the problem examined: Boomers being ’saved’ by productivity and technology; and, alternatively, by selling their financial assets to the next generation.

Page 2 of 212

Featured articles on inside pages

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US Politics

President Obama and the Lincoln Bible

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The extreme spending of the Obama government, combined with irresponsible bank lending policies promoted by Barney Frank and Chris Dodd, portend rising interest rates, the collapse of the bond market, and the end of dollar supremacy. More ...

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2011-03-21 14:48