Lightstone Value Plus Real Estate Investment Trust Inc
Real Estate Investment Trusts (REITs) have become increasingly popular among investors due to their unique characteristics that provide access to the real estate sector. Lightstone Value Plus Real Estate Investment Trust Inc is a relatively new entrant to the market that has gained a lot of attention since its inception in 2017.
What is Lightstone Value Plus Real Estate Investment Trust Inc?
Lightstone Value Plus Real Estate Investment Trust Inc is a publicly traded REIT that was launched in March 2017. The company focuses on investing in a diversified portfolio of income-producing real estate across the United States.
The company's primary objective is to provide investors with stable cash flows through investments in commercial, retail, and residential properties. Lightstone Value Plus REIT is managed by Lightstone REIT Advisors LLC, which is a subsidiary of The Lightstone Group, a privately held real estate company.
Investment Strategy
Lightstone Value Plus REIT's investment strategy is based on acquiring and managing a diversified portfolio of income-generating properties. The company invests in markets that have strong economic fundamentals, such as employment growth, population growth, and low vacancy rates.
The company's investment criteria include properties that generate stable cash flows, have long-term leases with creditworthy tenants, and potential for capital appreciation. Lightstone Value Plus REIT also invests in value-add properties that can be repositioned to generate higher rents and increase property values.
Portfolio
As of June 30, 2021, Lightstone Value Plus REIT had a portfolio of 22 properties with a total value of approximately $385 million. The portfolio is diversified across various property types, including retail, office, industrial, and residential properties.
The company's largest property is a retail center located in New Jersey, which accounts for approximately 15% of the portfolio's value. The company's other significant properties include a medical office building in Texas, a mixed-use property in Pennsylvania, and a multifamily property in California.
Performance
Lightstone Value Plus REIT has delivered solid performance since its inception. As of June 30, 2021, the company's net asset value per share was $10.53, and the company had paid out $1.20 in dividends per share since inception.
The company's dividend yield is currently around 6.5%, which is higher than the average dividend yield for REITs. The company's strong dividend yield is a result of its focus on income-generating properties and its conservative leverage strategy.
Risks
Like any investment, Lightstone Value Plus REIT carries certain risks that investors should be aware of. One of the main risks is the volatility of the real estate market, which can affect the company's rental income and property values.
The company's leverage strategy also carries some risk, as higher interest rates can increase the company's borrowing costs and decrease its profitability. Additionally, the company's concentration in certain markets and property types can increase its exposure to market and economic risks.
Conclusion
Lightstone Value Plus Real Estate Investment Trust Inc is a relatively new REIT that has shown solid performance since its inception. The company's investment strategy focuses on income-generating properties, which has resulted in a high dividend yield for investors.
However, like any investment, Lightstone Value Plus REIT carries certain risks that investors should consider before investing. Overall, the company's diversified portfolio and conservative leverage strategy make it an attractive option for investors looking to gain exposure to the real estate sector.