Winthrop Realty Trust (NYSE:FUR)

Jockey + Patience

This is the first time I have been interested in REIT's in a long time. I was a big fan of them in summer of 2009 and went heavily long; however I sold out of most of my positions in January of 2010 as I didn't like where the overall market was at and felt that many REIT's had gone too far too fast for my liking. Yes I have missed out on some future gains, but I slept much better at night knowing that my gains were locked in.

So why am I interested in them again you ask? Excellent question Fools.

First off, I'm not excited about the whole sector like I was before, in fact, FUR is currently the only REIT that I am actually interested in and would advocate starting a position in and/or adding shares.

Winthrop Realty has a management team that has proven itself to be dynamic and a cohesive unit and they have proved this time and time again during the past few years. Yes times were difficult, but they always seemed to manage the situations and take advantage of any opportunities that presented themselves. Mainly, while a lot of other REIT's and companies were running for the hills during the downturn, FUR was scooping up various properties and taking the extra step to lock in tenants for their current properties. This added up to adding some nice properties on the cheap all the while maintaining an occupancy rate around 90% throughout the crisis.

Shareholders usually complain when companies dilute their shares; however, I have to say that I agree with the management's decision to do so, and multiple times with the most recent coming just a few weeks ago (Sept 21st they issued 3M shares). Why for? Because management is smart and is betting they can put the extra cash to good use right now while there are still deals to be had. IMO, FUR is doing an excellent job of setting itself up for several years of above average returns by locking in good prices/deals/RE now while they are able to. Sure, nobody likes to see an extra 3M shares hit the market and sink the stock price, but in my view, this is only a short term setback and will greatly benefit the company long term. Remember patience is a virtue, so chill out! :)

With the 3M share offering, FUR took a nice ~20% haircut and is now back within spitting distance of some decent support at the ~$12 range. As I already mentioned, I feel that with this offering they significantly increased what their ultimate "value" is so this is a win win situation to be buying into Fools.

As with all REIT's, FUR has a sizable dividend to tide you over while you wait for better days to come. Currently it is yielding just over 5% which is definitely something to get excited about considering we may very well be in a range bound market for the next few years.

JakilaTheHun did one of the best write-ups I've ever seen on FUR a few months back, it's a must read for anyone wanting more details: http://seekingalpha.com/article/193618-winthrop-realty-trust-well-positioned-in-commercial-re-downturn

FYI, long FUR in Caps and RL

FUR is murder!

The market is about to bottom out in late 2010 early 2011. Winthrop has stood the test of time and was able to survive the demise of the real estate market and is now in a position to capitalize. I will be watching this company closely for the next several years.

September 2010:
ULTIMATE list of dividend picks.
These companies were screened to have a high dividend yield, 5 star cap rating, and observed to have NOT out of whack valuations (observed cash flows / book values / etc compared to industry norms on ratios page of tickers on fool) - also not too many financial picks
Here's the list:
shmr,spil,sgu,nzt,tot,uil,uns,ve,wgl,fur,fly,hgic,ngg,ntls,olp,pgh,cplp,arlp,bwinb,npd,cvbf

I am LOVING REIT's right now!

A REIT with 5 Caps stars!

This is too good to pass up!

Good future earnings.

good balance sheet, well positioned when housing settles

I'm picking this REIT for my portfolio for the dividend and because this guy has been unfairly beaten up.

Micheal Ashner

Stock found using custom screen. This REIT was destroyed, naturally, by the subprime/housing/credit meltdown. However, effective management, a dividend, and complete undervaluation by Wall Street offers an attractive opportunity to get a stock on discount. Risks include high debt, an unattractive future for the housing market, and general distaste by most for anything real estate related.

At its 52 week low. 6% div yield. I belive the dooms day scenario for R.E is priced into this stock. When the R.E cycle comes back i belive this stock will pop nicely. Might have to wait for this one but with a 6% yield why not park your money and wait.

Strong managers and no liquidity issues. Should continue to generate strong cash flows and gain from investments. It's a Berkowitz stock.

Why did the PE ratio shoot up to 200?

Along with Realty Income (O), Winthrop is one of my favorite REITs. Solid dividend income, beat up by the subprime mess but Winthrop will come through fine. Buying now gives you excellent share price appreciation over the next couple years along with dividends.

Don't mind me, I'm testing some strats.

Has had good profitability despite the subprime mess, still is beaten down, but appears to set for a comeback. I like this stock as a speculative play to continue to grow and raise dividend and EPS for the next five years. The company has solid management and has been very effective as seen by the company's high ROA and ROE ratios. A speculative play with a dividend and growth. Im in ,........

I am taking a risk on this one. I am betting that when the housing market turns around this is going to be one of the front runners. This company is on sale.