Brad Thomas, a noted REIT expert has recently placed a sell recommendation on two popular REITS.
Brad Thomas is the author of two books “The Intelligent REIT Investor: How to Build Wealth with Real Estate Investment Trusts” and “The Trump Factor: Unlocking the Secrets Behind the Trump Empire”. He also writes articles for Forbes and Seeking Alpha , has his own Newsletter and Radio show about investing in REITS.
He is also my favorite author and REIT expert. He has share his experience at real estate development with his readers. It is because of this real world experience I believe it gives him a clearer insight into the financial workings of REITS. With connections to several REITs he follows and his real world friendship with President Trump he is not only well schooled but well connected as well.
He has currently recommended a sell on two widely held REITS. The first is Gladstone Commercial (GOOD) and here is a quoted summary of his conclusion:
“In fact, I would argue that from a risk-adjusted perspective, GOOD shares are now expensive and investors should consider trimming or possibly selling. It is clear that GOOD is not in a position to raise the dividend and the potential for share price appreciation is muted.”
The second sell recommendation is Lexington Realty Trust (LXP) and here is the summary of his sell conclusion for LXP:
“As you can see below, we don’t see the same “margin of safety” with LXP as we saw a year or so ago. While the company has been successful with its recycling platform, the payout ratio has become tighter, and the potential for dividend growth is less exciting. LXP is forecasted to grow modestly, but the extreme office exposure and tight payout ratio suggests it may have lost some of its sizzle”
I currently own LXP and have decided to hold my shares at this time however I certainly would not recommend buying LXP at this time.
Both REITS are popular among investors seeking current dividend income.
For more information on Brad Thomas visit his website IREITINVESTOR.com
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