Wednesday, December 7, 2011

Proof ... real estate is NOT dead!

With the year wrapping up in a few weeks, I thought it’d be interesting to see how the investment ideas I’ve posted have done. And I since think there is always a way to make money in real estate, I was particularly interested in how the REITs I picked have performed.

So let’s take a look:

On March 14, 2010 and again on November 30, I told you about a REIT I’ve owned for years, Public Storage (PSA). Since I first mentioned it, it’s up 47%. And the 1-year return is 32.55%.

On December 30, 2010, I gave you four REITs in the health care sector to check out. Here they are with their 1-year returns:

• Ventas (VTR) up 7.01%

• HCP, Inc. (HCP) up 18.04%

• Health Care REIT (HCN) up 14.92%

• Senior Housing Properties Trust (SNH) up 5.24%

Then on September 27, 2011, I told you about three Canadian REITs that were worth a look. Granted, it hasn’t even been three months. So for a long-term investor like me performance one way or the other doesn’t really matter. But they are all up. And their 1-year returns are pretty impressive.

• IA Ecoflex Real Estate Income Fund (IAECREIN CN) up 14.76%

• BMO Equal Weight REITs Index ETF (ZRE CN) up 11.15%

• Investors Real Property Fund (INVRLPRA CN) up 6.79%

Seven of the REITs are cash cows, too, with dividend yields ranging from 2.03% to 7%.

Compare the above returns to SPY, the exchange traded fund that tracks the S&P 500; it’s up 5.22% over the past year.

I’m not suggesting that you put your entire investment portfolio in real estate. That would be as irrational as putting everything in gold (GLD up 24.1%). But a small allocation (10%-15%) could make a lot of sense.

Best wishes,


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