this is interesting
Winnipeg Free Press - PRINT EDITION
REIT shell games are destined to implode
By: Fabrice Taylor / Inside Track
Posted: 03/26/2011 1:00 AM
Investors love real estate, whether it's buying a home, a rental property or stocks. Why? In part because it's easy to understand and tangible: They can see it and touch it. But investors behave in a curious way when it comes to what they tolerate from their real estate investments.
If you invest in property directly, you'd never, say, buy a rental that generates $50,000 a year in income and then pay yourself $75,000. You couldn't, in fact.
Yet, investors routinely buy shares of companies -- real estate investment trusts -- that do precisely that: pay out more than they should.
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