Dallas, Texas 10/23/2013 (Financialstrend) – Cole Real Estate Investments Inc (NYSE:COLE) is a real estate investment trust which invests in a diversified portfolio of real estate assets. In beginning of the month, the rating agency FBR Capital has assigned a Buy rating on this REIT fund. The agency has cited that the stock enjoys a lot of elbow room given its status as a recently become public trading stock. It has also been listed on multiple indexes which has allowed the company to attract more number of institutional investors in lieu of retail investors. The fact that the REIT has also authorized a share buy back in case of any intervention needed to support the price from falling too low has also been sighted by the analyst agency.
The analyst firm goes on to add that other rating firms will soon come to realize the strength of the diversified portfolio that the fund is building up. The REIT asset management division also gets a mention in the analyst report. It is believed that this often over looked division has the potential to contribute consistent revenue over the next few quarters. The strategy being followed by the company to operate in the “secondary market” has allowed the firm to avoid going head on with deep pocketed bigger competition has also been commended and identified as reason for posting a Buy rating on this REIT.
Since its going public, the fund has paid out $0.72 dividend per share over the past 5 months. This translates to a 5.62% dividend yield which compares well over its competition. In the past one quarter the stock has appreciated by 20% and by close to 4.48% over the past one week of trading. This has led to analyst houses upping the target price for this diversified REIT to $14.33 per share.
