CreXus Investment (NYSE:CXS.DL)

CAPS Rating: No stars


Player Avatar ArfytheSeal (58.89) Submitted: 2/12/2011 1:05:46 PM : Outperform Start Price: $10.57 CXS.DL Score: +7.11

The company invests in commerical real estate (CRE) mortgages through both securities (commercial morgage backed securities, or "CMBS") and through individual mortage loans. The portfolio is managed by the folks from Annaly, a residential mortgage REIT with an excellent long-term track record. Highlights follow:-The portfolio assets are of very good quality (right now at least), often with high public debt ratings and no delinquent loans currently. -The company trades roughly 10% under its book value. -The portfolio's assets average approximately 7.75% yield while the liabilities are more like 3.60%. -Leverage is well under 1x. -The divident yield is now 6.6%, but may head north of 7% shortly (based on an extrapolation of recent dividend increases), as the portfolio continues to ramp up.

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