Investing in REITs – Real Estate Investment Trusts 4e

<p>Introduction xi</p>
<p>Acknowledgments xv</p>
<p>Part I Meet the REIT</p>
<p>Chapter 1 REITs: What They Are and How They Work 3</p>
<p>Types of REITs 5</p>
<p>General Investment Characteristics 6</p>
<p>Higher Current Returns 11</p>
<p>Summary 17</p>
<p>Chapter 2 REITs versus Competitive Investments 19</p>
<p>Bonds 20</p>
<p>Convertible Bonds 22</p>
<p>Preferred Stocks 23</p>
<p>Other High– Yielding Equities 24</p>
<p>Other Real Estate Investment Vehicles 26</p>
<p>Summary 31</p>
<p>Chapter 3 Today s REITs 33</p>
<p>The First REIT 33</p>
<p>The Tax Reform Act of 1986 34</p>
<p>UPREITs and DownREITs 35</p>
<p>REIT Modernization Act and RIDEA 37</p>
<p>Lending REITs versus Ownership REITs 39</p>
<p>Expansion of REIT Property Sector Offerings 40</p>
<p>Summary 41</p>
<p>Chapter 4 Property Sectors and Their Cycles 43</p>
<p>Ups and Downs 45</p>
<p>Property Sectors 49</p>
<p>Summary 87</p>
<p>Part II History and Mythology</p>
<p>Chapter 5 REITs: Mysteries and Myths 91</p>
<p>Changing Attitudes toward REITs 91</p>
<p>Myths about REITs 97</p>
<p>Summary 108</p>
<p>Chapter 6 A History of REITs and REIT Performance 109</p>
<p>The 1960s: Infancy 109</p>
<p>The 1970s: Adolescence and Turbulence 111</p>
<p>The 1980s: Overbuilding The Troll Under the Bridge 113</p>
<p>The 1990s: The Modern REIT Era Plus More Growing Pains 115</p>
<p>2000 to 2007: Credibility and Market Acceptance 124</p>
<p>2007 through 2010: REITs Survive the Great Recession 127</p>
<p>Recent Trends 134</p>
<p>Summary 139</p>
<p>Part III Investing Intelligently in REITs</p>
<p>Chapter 7 REITs: Growth and Value Creation 143</p>
<p>The Signifi cance of FFO and AFFO 144</p>
<p>The Dynamics of FFO/AFFO Growth 149</p>
<p>Internal Growth 152</p>
<p>How to Build Internal Growth into a Lease 157</p>
<p>Other Ways to Generate Internal Growth and to Create Shareholder Value 158</p>
<p>External Growth 163</p>
<p>More External Growth Avenues 172</p>
<p>Summary 173</p>
<p>Chapter 8 Searching for Blue Chips 175</p>
<p>Investment Styles 175</p>
<p>Growth REITs 176</p>
<p>Value or Turnaround REITs 178</p>
<p>Bond– Proxy REITs 179</p>
<p>The Virtues of Blue– Chip REITs 180</p>
<p>The Importance of Allocating Capital Wisely 190</p>
<p>Summary 212</p>
<p>Chapter 9 The Quest for Investment Value 215</p>
<p>The Investor s Dilemma: Buy–and–Hold versus Trading 215</p>
<p>The Buy– and– Hold Strategy 217</p>
<p>REIT Stock Valuation 218</p>
<p>Valuing REITs as a Group 231</p>
<p>Summary 237</p>
<p>Chapter 10 Building a REIT Portfolio 239</p>
<p>How Much of a Good Thing Do You Want? 239</p>
<p>Diversifi cation among REITs 245</p>
<p>Toward a Well– Balanced Portfolio 248</p>
<p>How to Get Started 251</p>
<p>Summary 259</p>
<p>Chapter 11 Investing in Global REITs and Property Companies 261</p>
<p>How the U.S. REIT Revolution Spread around the Globe 264</p>
<p>Mapping the Size of Global Property Stock Markets 274</p>
<p>Managing a Global Real Estate Securities Portfolio 284</p>
<p>The Practicalities of Investing Overseas for the Individual Investor 287</p>
<p>A Summary: Stocks for All Investment Seasons 298</p>
<p>The Long– Term Evidence Supporting Investments in</p>
<p>Global Real Estate Securities 300</p>
<p>Part IV Risks and Future Prospects</p>
<p>Chapter 12 What Can Go Wrong? 309</p>
<p>Issues Affecting All REITs 309</p>
<p>Problems Affecting Individual REITs 323</p>
<p>Summary 333</p>
<p>Chapter 13 Tea Leaves: Some Thoughts about the Future 335</p>
<p>Additional Real Estate Owners Will REITize 337</p>
<p>Increasing Investor Demand for REITs 344</p>
<p>Larger REITs: Is Bigger Really Better? 353</p>
<p>Additional New Trends 360</p>
<p>So Much More to Come 366</p>
<p>Summary 367</p>
<p>Appendix A Death and Taxes 369</p>
<p>Appendix B Case Study: FFO, AFFO, FAD, and CAD 373</p>
<p>Appendix C Cost of Equity Capital 377</p>
<p>Appendix D REIT Portfolio Management 381</p>
<p>Appendix E Largest Global Real Estate Companies as of December 2010 391</p>
<p>Glossary 413</p>
<p>About the Author 423</p>
<p>About the Contributors 425</p>
<p>Steven D. Burton 425</p>
<p>Kenneth D. Campbell 425</p>
<p>Index 427</p>