Real Estate: The New Trophy Stocks

Are there still profits to be made in the burgeoning Real Estate Market?

You may have read a lot about the housing bust and the reversal of fortunes among homebuilders and others who benefitted mightily from the residential real estate boom of the past five years. But most of the action in real estate takes place far from the residential side of the sector. It's happening in commercial real estate!

Just look at the $39 billion sale of Sam Zell's Equity Office Properties Trust (EOP) to The Blackstone Group in February 2007. Shares of EOP jumped 40% in the span of less than three months as rival REIT Vornado Realty Trust and private equity firms repeatedly increased their offers. The feverish consolidation in the industry is fueling a boom that you can profit from.

Listen to what Sam Zell said during a recent exclusive roundtable discussion held for the world’s top value investors in New York City.

Said Zell,“I don’t think this real estate boom is going to end. What drives this market is supply and demand, and rising prices for oil and other resources like iron ore, have created a situation where the world is awash with capital. Yet the supply of real estate assets is limited.”

Zell is correct. Abu Dhabi alone reportedly had some $350 billion invested in stocks and bonds, when oil was trading at under $30 per barrel. Today crude sells for about triple that price. Thanks to tremendous demand from China, iron ore prices have surged recently and big iron producers in Brazil and Australia are reaping huge rewards. Where are these big global investors going to be investing their windfall profits?

Billionaire and REIT pioneer Sam Zell told the crowd where he thought the tidal wave of new global capital would be flowing.

Many trophy stocks are no longer trophies, so global investors don’t want to put capital in blue chips anymore. Real Estate stocks are the new trophy stocks. Their percentage of the S&P 500 has grown, so by definition they will be getting a larger percent of the world’s capital.

With your subscription to the Forbes/Slatin Real Estate Report comes Peter's 2 Special Reports, "7 Real Estate Plays for the Current Market" and "8 Defensive REITs for a Shaky Market."


The Global Bull Market In Real Estate
Has Just Begun

And there is no better way to profit from HIGH YIELDING real estate securities than by following the seasoned advice of Forbes' partner, Peter Slatin, long time real estate expert and editor of the Forbes/Slatin Real Estate Report.

Peter has followed the property sector as a leading magazine editor and newspaper columnist. His newsletter, The Slatin Report, is read at the highest levels of the real estate industry. Now he brings his 15 years of observing the slippery, surprising ups and downs of this cash-flow-intense universe to the Forbes premium suite of Investment Newsletters.

What is Peter’s view on the current market?

After five straight years of outperforming virtually all major market indexes – and just when some investors might have thought these stocks went only one way - real estate investment trusts began to retreat last fall as fears about interest rates, inflation, and a housing bubble continued to stir deep uncertainty in every property sector.

However, even as valuations have declined, some real estate stocks continue to show strength and offer yield-oriented investors an excellent rate of return. And these falling prices can offer opportunity as much as they can also signal danger. Picking winners and losers in an arena where companies rise and fall with cyclical regularity means knowing who the players are – and, especially in real estate – which ones play by the rules.

Peter likes to take a long-term perspective. Over the past 10 years equity real estate investment trusts have provided compounding returns of 10.22% versus, 4.07% for the S&P 500. Homebuilder stocks like DR Horton, for example, climbed over 360% between January 2003 and July 2005, and that excludes dividend payments.

Most real estate stocks are barely entering their teen years from a market lifecycle perspective. The widely fragmented $1.7 trillion real estate industry is vulnerable to forces-from global capital flows and interest rates to national corporate management trends to local, street-level politics. Investors need an expert who can put them on the inside track to understand what top property owners and investors are planning.

Veteran real estate expert Peter Slatin knows the real estate markets and the key players from the inside out, from office buildings to retailers to luxury hospitality developers, REITs and homebuilders.

The Forbes/Slatin Real Estate Report will guide you down a fascinating road explaining how small and large real estate enterprises build, buy and operate the places in which we live, work, shop, play and do just about everything. It will also let you know where the smartest players in the business are investing their capital.

Here are some of the sectors we will profile each month in the Forbes/Slatin Real Estate Report.

  • Offices and office markets
  • Retail, from strip centers to mega-malls
  • Industrial properties and logistics
  • Apartments and condominiums
  • Hotels and resorts
  • Lenders and borrowers

We'll look at all slices of the property market, from REITs and REOCs [Real Estate Operating Companies] to home builders, real estate service providers, mortgage companies and even the private-equity and institutional markets, where the lion's share of the fortunes in real estate are made – and lost.

Each month in the Forbes/Slatin Real Estate Report, you will also get:

  • Expert Interviews with Key Real Estate Insiders
  • REIT Market Watch
  • 2 Model Portfolios : One Aggressive and One Conservative
  • Deal Drilldown: Slatin and other experts dissect a recent real estate transaction

With your subscription to the Forbes/Slatin Real Estate Report, you will also get Peter's Special Reports for FREE.

  • 7 Real Estate Plays for the Current Market
  • 8 Defensive REITs for a Shaky Market



  Meet our Forbes Guru: Peter Slatin

Peter Slatin is the founder and editor of The Slatin Report, a Web-based commercial real estate news service launched in 2003., which has been recognized by The Wall Street Journal as a leading source of industry information for real estate professionals, reaches more than 11,000 readers a week across the U.S.

In November 2005, Mr. Slatin launched the Forbes/Slatin Real Estate Report, in collaboration with This subscription publication covers U.S. and international real estate securities.

Peter serves as real estate program advisor for Asset Management division of Information Management Network, a global conference producer. He is also Program Director for The Conference Board's Corporate Real Estate Conference.

Mr. Slatin has more than 15 years’ experience covering the commercial real estate industry for a variety of publications, including Barron’s, The New York Times, The Wall Street Journal, Urban Land, Portfolio magazine, and many others. Before creating The Slatin Report Group, Mr. Slatin was the co-founder and editor-in-chief of GRID, a ground-breaking real estate magazine and winner of numerous awards for editorial excellence.

Active in the community, Mr. Slatin is a trustee of the Van Alen Institute, a New York-based nonprofit focusing on the development and design of public spaces, and of Lighthouse International, the nation’s leading provider of rehabilitation services for the visually impaired.





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