Equity Residential (EQR)

REITs were overly beat up when the real estate bubble burst.
EQR pays a good (almost 5%) dividend.

goodbye

There is less momentum, less volume, and less buying going on. We are in the last part of this rally.

The 1929-1930 equity rally (coming out of The Great Depression) lasted 147 days and the market was up 46%. It has been the same amount of time since the March, 2009 low and we are up about the same percentage. It’s déjà vu (paramnesia), so prepare for a drop of about the same percentage (85%).

Rinse and repeat!

Chairman is too distracted by Tribune Co. woes.

Dividend yield is dangerously high. Watch for a dividend cut as the debt/equity > 2 forces income to be committed to debt repayment. TTM P/E of over 200? Let's be reasonable.

Overleveraged REIT's are looking bad here.

Well run REIT pick.

This and AVP for the dividend, feel free to use SRS to short the sector if youd like to hedge

Easy money.

Chosen to be a part of the High Yield Portfolio strategy. Originally created by Fool UK's Stephen Bland (TMFPyad) in November 2000, the High-Yield Portfolio (HYP) strategy invests in a diversified group of 15 blue chip dividend-paying stocks with strong dividend cover, relatively low debt, and a history of increasing dividend payouts. The holding period is theoretically forever -- unless a stock is bought out or cuts its dividend.

Sound crazy? Well, the point of the portfolio is not necessarily for capital gains (although that's certainly a bonus), but to produce increasing amounts of annual dividend income. Daily price fluctuations matter not -- it's the income that matters -- so it removes emotional trading from the picture entirely. Doubters should note that the original UK HYP from November 2000 returned 68% through December 2007 (while the FTSE 100 lost 8%). What's more, the portfolio income payout increased 29% over that seven year period, from 3,451 pounds to 4,462 pounds per year.

Strong balance sheet with additional $550 million loan obtained recently from Wells Fargo at 6%. Reduced financing concerns for the long-term, unlike peers. Low 45% leverage (ratio of debt to total assets). Housing issues have more benign impact on this owner of apartments, where tenants are likely to stay put, if anything.

RE prices grow rapidly. All companies involved in the RE sector will benefit. Apartment REITs will benefit most.

ccest

Can anyone say P/E? Higher than my neighbor in college....sell it

Urban Housing Growth - gas prices

Sam Zell's Equity Residential is an apartment REIT. My investment thesis for this one is simple. Sam Zell is an exceptional real estate investor and his leadership cannot be undervalued. Second, as more and more homeowners go into foreclosure or sell second homes they will need to secure alternative housing options, and many will opt for apartments. Third, a significant portion (almost a third here in the metro DC area where I live) of the apartment inventory available earlier in the decade was converted to condos during this last real estate bubble. Rents will rise as a result of the combined increase in demand and diminished supply. The next few years will prove to be a very good time to be a landlord.

with a p/e of 188 on 4/8 this stock is way overvalued

Equity Residential is a publicly owned real estate investment trust. The firm engages in the acquisition, development, ownership, management, and operation of multifamily properties. It primarily in invests in the markets of the United States. The firm primarily invests in major metropolitan areas and growing markets. It typically invests in properties of 1990 or newer. The firm also considers older properties with quality construction and desirable location and acquires renovation or repositioning opportunities. Equity Residential was founded in 1966 and is based in Chicago, Illinois with additional offices in Atlanta, Georgia; Denver, Colorado; Ft. Lauderdale, Florida; Stockton, California; San Ramon, California; Aliso Viejo, California; Valencia, California; Jacksonville, Florida ; Orlando, Florida; Tampa, Florida ; Wellesley, Massachusetts; Bloomington, Minnesota; Charlotte, North Carolina; Cary, North Carolina; Beaverton, Oregon; Austin, Texas; Houston, Texas; Plano, Texas; Vienna, Virginia; Tukwila, Washington; Redmond, Washington; and Scottsdale, Arizona.