Business and Finance Business and Finance
Mon, November 28, 2011

Large Dividends From RAIT Financial Trust and ARMOUR Residential Come Under Fire


Published on 2011-11-28 05:21:47 - Market Wire
  Print publication without navigation


November 28, 2011 08:16 ET

Large Dividends From RAIT Financial Trust and ARMOUR Residential Come Under Fire

The Bedford Report Provides Equity Research on RAIT Financial Trust & ARMOUR Residential

NEW YORK, NY--(Marketwire - Nov 28, 2011) - Shares of high yielding Real Estate Investment Trusts (REITs) have been volatile in recent months. While the favorable interest rate spreads have benefitted the sector, REITs -- like the rest of Wall Street -- have been challenged by investor anxiety over the European debt crisis. Moreover, potential measures being proposed by Congress and the Obama Administration could potentially weigh on the industry's profits -- and dividends. The Bedford Report examines the outlook for REITs and provides research reports on RAIT Financial Trust (NYSE: [ RAS ]) and ARMOUR Residential REIT (NYSE: [ ARR ]). Access to the full company reports can be found at:

[ www.bedfordreport.com/RAS ]
[ www.bedfordreport.com/ARR ]

The Obama administration's latest plan to help underwater homeowners refinance turned some investors away from mortgage REITs. Mortgage prepayments are known to crimp mortgage REIT earnings. Mortgage REITs make money on the spread between interest rates on short-term debt that they use to buy higher-yielding, long-term mortgage securities. By purchasing bonds guaranteed by the government, analysts argue these companies take on no risk of default, with the principle concern being an interest rate risk.

The Bedford Report releases investment research on REITs so investors can stay ahead of the crowd and make the best investment decisions to maximize their returns. Take a few minutes to register with us free at [ www.bedfordreport.com ] and get exclusive access to our numerous analyst reports and industry newsletters.

While the US housing market remains stagnant, many companies in the Residential REIT industry are taking advantage of a surge in apartment demand. Apartment vacancies are low as many people who once qualified for home loans find themselves unable to secure a mortgage. With mortgage default levels continuing at an elevated level and unemployment levels high, many smaller families may also be finding themselves forced to downsize to an apartment.

RAIT Financial Trust manages a portfolio of real estate related assets, provides a comprehensive set of debt financing options to the real estate industry and invests in real estate-related assets. Presently the company pays an annual dividend of 24 cents for a heft yield of approximately 5.6 percent.

ARMOUR Residential REIT's portfolio consisted of Fannie Mae, Freddie Mac and Ginnie Mae mortgage securities and was valued at $5.3 billion as of June 30, 2011. For the quarter ended September 30, 2011, the Company declared dividends of $0.12 per share outstanding for each month of the quarter. The dividend payments totaled $28.3 million as compared to taxable REIT income available to pay dividends of $31.3 million.

The Bedford Report provides Market Research focused on equities that offer growth opportunities, value, and strong potential return. We strive to provide the most up-to-date market activities. We constantly create research reports and newsletters for our members. The Bedford Report has not been compensated by any of the above-mentioned publicly traded companies. The Bedford Report is compensated by other third party organizations for advertising services. We act as an independent research portal and are aware that all investment entails inherent risks. Please view the full disclaimer at [ http://www.bedfordreport.com/disclaimer ]


Contributing Sources