With the banks cutting rates I had to find something that offered a higher "monthly" income or return. Please, I can't answer any questions or offer suggestions. Do your own research. The answers are available on the web. The company is called Realty Income with the symbol "O". Realty Income engages in the acquisition and ownership of commercial retail real estate properties in the United States. The company leases its retail properties primarily to regional and national retail chain store operators. As of December 31, 2006, it owned 1,955 retail properties located in 48 states, covering approximately 16.7 million square feet of leasable space. Realty Income has elected to be treated as a real estate investment trust (REIT) under the Internal Revenue Code. As a REIT, it would not be subject to federal income taxes provided it distributes at least 90% of its taxable income to its shareholders. The idea here is "monthly income" with growth over the long run.

Happy Trails
TJ

P.S. Here's the web site: http://www.realtyincome.com/
Note: That's 7% annual paid out monthly.

This message has been edited. Last edited by: TJ,

I own a small amount of "O" in my retirement plan. Unfortunately I have owned this for over a year. "O" is currently trading at about $23.67. A year ago it was trading about $5.00 higher.

I love REIT'S as a part of an overall plan. However, as a single investment, I would not recommend any specific REIT.

Wait three months, it will be even lower.

quote:

Originally posted by bowtiepuller:
Wait three months, it will be even lower.

Most likely a good amount lower. Commercial Real Estate usually lags residential by a year or two. We are seeing it in our area already, lots of for lease signs and very few tenants. Not too mention lots of commercial still under development.

Not a pretty picture. I'd stay the hell away from REITS for a good 3-5 years.

This is an monthly INCOME product that is paying double what the banks are paying with their money markets, savings or CDs. The key here is MONTHLY INCOME. Anyone looking for growth, this is not the vehicle with only a 15.3% return during the past 5 years. But add in the monthly dividends and it's a very good investment. Also, this company invests in retail properties only - no office, highrise or warehousing... If you own a Burger King and want to buy another one to expand your business Realty Income will buy your property from you giving you the money you need to purchase another franchise and then lease back your property to you - everybody wins. When was the last time you saw a Burger King, 7/11 or Wendy's go out of business? The company owns more than 1,900 retail properties in 48 state.

TJ

First of all, why are you defending this? If you posted it as info, as you stated, than no defense is necessary. We can look and decide.

I have seen Burger King close up. And just yesterday, I say and from 7/11 trying to sell franchises where we could take over a number of franchises. Don't know why they are for sell, but losing money could be one reason.

My wife bought 100 shares of a stock at $10 and if was going to pay 6 percent. It is now trading at $3. It is going to take a long time for the dividend to make up that loss.

Be careful. I have way too many shares in a Mortgage REIT that I bought at $90 and it is now at $1.80. I kept thinking it couldn't go any lower. It paid a great dividend too. 15% or something when I bought it. Until the sub prime mortgage issues hit. Now they pay no divy and it is so low that it makes no sense to sell it. (FWIW, I do think it will rise again as much of the issues with subprime are overblown due to the powers on wall street shorting and artificially depressing the index that banks and others use to "mark to market" under GAAP the collateralized debt obligations that are held by the banks (and this company). There was also naked short selling going on in the shares too that was ignored by the SEC.)

Make sure you know what you are buying and holding. Myself, I am thinking I like passbook savings more and more.

I have had "O" for years. It is a good REIT, and reliable producer of income. However, REITs are out of favor now due to the mortgage crisis and ensuing recession. The smart move is to wait till the real estate market bottoms out, and buy Realty Income shares. Then you will get the 7% income, and appreciation in share price as it rises.

Amen..!!

OK, so think about what is going UP these days. And what is NOT likely to move significantly LOWER. Think about every time you fill that big ol' tank. What is it?

OIL! Diesel! Gasoline! Instead of grimacing, put a smile on your face when paying out those extra bucks. I do.

I have invested in a number of energy income trusts which pay from 10-15% on your investment. Monthly checks. Sure, there is some market risk...and also operations and reserve risk, but these instruments can be used very effectively in offsetting a portion of an interest-based declining retirement investment income.

Like everyone else, I temporarily grimace every time I see the price/gal. at a higher rate....then I remind myself what this means for my next check.

Slabman,

Are these the Canadian Trusts..??

Can you share the stock symbols with us..??

Thanks,

Yes, both US and Canadian. The Canucks pay a bit more, but they siphon off a 10% tax at time of payment which is returnable on your income taxes as a foreign tax paid. It you put these into an exempt vehicle such as an IRA, you don't get this money back. That is why mine Canadians are in my brokerage account only. The one I like is AAV which you can check out on finance.yahoo.com and see the price history and dividends paid.

The other one I like is the Permian Basin Royalty Trust (PBT) which pays right at 12% now, I believe. It does not take out any tax. I bought this over the years in the low to mid-teens and it's around $22-23 now.

Others are PBT, Pengrowth, Torchlight and some others that escape me right now.

Hi slabman,

A couple REIT's I used too watch last year, ECR and NFI. Both no longer exist. I have no idea what happen to there 1b+ net assets they had when they disappeared off the exchange listing.