Important Updates for Investors
Carla Pasternak's Premiere Issue of High-Yield International Just
Released
Income expert Carla Pasternak's debut issue of High-Yield
International covers a Taiwanese manufacturer yielding 9.5%... a
rare Mexican monopoly yielding 13.4%... and other top-performing
investments yielding up to 19.0%.
Government's Biofuel Timetable Could Spell +15,900% Growth
+15,900% growth might seem far-fetched... but it's not. In fact, it
is mandated by law. And I've identified the ONLY stock positioned to
capture this growth.
The
Silver Lining to a Falling Dollar
Despite the U.S. national debt, there is a silver lining for income
investors. This massive spending, combined with movement out of U.S.
Treasuries, is going to take its toll on the dollar, and
international income investors could reap the rewards in the form of
higher dividends. |
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An Added Margin of Safety with This
Recession-Resistant REIT |
Published:
October 20, 2008
Cogdell Spencer (NYSE: CSA, $13.90 ) -- This medical real
estate investment trust (REIT) went public in late 2005. It then
merged with a medical facilities construction firm named Erdman.
Cogdell Spencer owns and manages medical office buildings,
primarily in the southeastern U.S.
Since going public, the REIT has distributed $0.35 a quarter or
$1.40 yearly. At current prices, the shares are yielding just
over 10% ($1.40/$13.90).
Cogdell Spencer owns and leases 62 properties and joint
ventures. It also manages 53 medical office buildings. Most of
its revenue comes from rental income from its properties. Fees
from joint ventures and managed buildings also contribute about
10% of revenue.
The majority of its properties are located in the Carolinas,
Kentucky, Tennessee, but it also operates as far afield as
Florida, New York, and California. This geographical
diversification helps offset the risk of an economic downturn in
any one region of the country.
For the first half of 2008, CSA generated what it terms
"modified" funds from operations (FFO) of $0.59 a share and
suffered a $3.6 million loss. That contrasted to the $0.56 per
share it reported in the first six months of 2007. (Funds from
Operations (FFO) is net income plus depreciation minus
maintenance level capital expenditures. Modified FFO adds back
amortization of non-real estate assets.)
For the full year, management estimates modified FFO of between
$1.20 and $1.40. The high end of that range would cover the
$1.40 per share annual payout; otherwise, the company will
likely continue to draw on its capital reserves to maintain the
current payout rate.
As with almost all companies dependent on capital to expand, the
credit crunch affects CSA's ability to raise capital. However,
the company did recently offer 2.16 million shares, raising
close to $40 million.
Action to Take -->
This medical real estate operator is in a relatively
recession-proof business, and its cash flow has continued
growing amid the economic slowdown. Given its somewhat steep
dividend payout ratio, the stock is suitable for a reasonably
aggressive investor seeking a robust yield.
Carla Pasternak
Editor
High-Yield Investing
http://www.StreetAuthority.com
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