Select Income Reit (NYSE:SIR)

CAPS Rating: 3 out of 5

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Member Avatar DrGoldin (98.86) Submitted: 4/9/2013 12:08:43 AM : Outperform Start Price: $27.43 SIR Score: -3.86

They're a wholly owned subsidiary of CWH, and a lot of investors are down on CWH right now because of the management. Fair enough--that's the negative. Here are the positives. Lots of good properties. P/FFO (2012) of just 8.85, so it ain't gonna go down much. Current yield at a lovely 6.2%, with LOTS of room for dividend growth, because the Div./FFO (again 2012) is under 55%. That's very, very low for an equity REIT; most are at 80% and above. Guess what? Low debt/equity, too!

Surefire winner.

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