November 17, 2017
First Industrial FR is paying a lousy 2.6% yield: it really sucks. But we are not looking at this REIT for high dividends: think of it as a dividend growth stock.
FR is a turn-around play: back in 2009 the stock price was $5.00 (today it is $32.00) and they did not start paying dividends until 2013!!! The short story is this: they converted properties into warehouse facilities, and as such, are feeding the demand from Amazon and on-line sellers for the growing e-commerce boom.
We do anticipate both a higher stock price and higher yields going forward. Below is a Company description and also a link to an article on SeekingAlpha.com that describes FR in detail.
BUY (a small position to start) at $32.14 or lower.
BUSINESS: First Industrial Realty Trust, Inc. provides industrial real estate solutions for every stage of a customer’s supply chain, no matter how large or complex. Across major markets in the United States and Canada, their local market experts buy, (re)develop, lease, manage and sell industrial properties, including all of the major facility types – bulk and regional distribution centers, light industrial, manufacturing, and R&D/flex. They continue to receive leading customer service scores from Kingsley Associates, an independent research firm, and in total, they own, manage and have under development 97 million square feet of industrial space.
BOOKS: We have not read a novel in, well, FOREVER. We have just never been that interested in reading fiction. BUT, we were reading about the new book ORIGIN by Dan Brown, who,, you may recall, is infamous for The Da Vinci Code. So we decided to try it our.
If are into fiction, we strongly recommend this book. We were amazed as to how we got sucked into the story line. Good reading!