As you may recall, as San Diego property managers, we at 8 West have observed that the best return from long term real estate investment tends to come from direct prudent investment in rental property. Especially in dynamic areas such as San Diego.
However such direct investment typically involves substantial sums that some may not be comfortable or even able to invest at this point. In addition, there may be a desire for a measure of tactical diversification within the realm of real estate related investment.
We at 8 West Property Management took a little chance by introducing you to a Real Estate Investment Trust stock right before its most recent quarterly earnings report. Obviously that was based on significant confidence in this stock and the hope that there might be some pay off for our clients and friends in the real estate investment community.
It’s a pleasure to Report that New York Mortgage Trust (NYMT) handsomely exceeded analyst expectations. According to Zacks Investment Research, Wall Street Analysts had on average predicted earnings of 24 cents per share. In fact, the company reported profits of almost $40 million that divided down to 42 cents per share (31 cents adjusted for investment gains).
Clearly, more than enough to support NYMT’s traditional 27 cents per quarter dividend (an almost 3.5% per quarter yield at recent stock prices).
Though such news is certainly welcome to those of us who have invested in NYMT, it must be pointed out that such REIT’s are inherently speculative and NYMT’s fortunes may one day take a downturn and the stock may not prove to be a good long term investment.
However for the moment, we celebrate the good news and offer you the following link from Seeking Alpha as a resource: http://seekingalpha.com/article/2641405-update-new-york-mortgage-trust-reports-q3-results-yeah-best-of-breed-indeed
