Equity Residential (NYSE:EQR)

Oversold. Strong presence in markets with high barriers to entry. Growing dividend will attract buyers leaving the bond market.

Residential REIT's is like buying a utility with an inflation hedge. FFO is a bit rich, yes, but there are forces at work that should keep FFO stable or increasing. For one, the debt market is favorable now and for the forseable future for large real estate investors. Second, despite the supposed pending residentail housing boom that is running through the media, an increase in either property tax or income tax - or both - will give people pause to purchasing a new home. In essence, the rental market will remain strong and this market is already tight in many markets. In addition to these macro condition, many of these residentail REITs own properties in the prime / desirable locations of CBD's, where the population continues to migrate....Manhattan, LA, Denver, DC etc. In these areas, if you want commutability, you are more likely forced to live in a rental apartment/complex than a single family home.

In summary, market should be supportive to rental rates, low cost of financing, scarcity of product in prime locations, and real estate as an inflation hedge all bode well for the long term benefit of incorporating residential REITs into your portfolio....with a nice dividend to boot.

buy buy buy jim cramer

Truly exceptional management.

With the housing market the way it is I see potential in the rental market into the future until the housing market stabilizes and people regain their faith in purchasing a home.

Until recently it was easier to qualify for a home loan than getting approved for a good apartment. I don't see much pricing power outside of very desirable areas, so the profit margins may not be that good even if some demand is present.

Can't see this one going well...

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.

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.

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

Urban Housing Growth - gas prices