Sunday, November 19, 2006

Another One Bites The Dust

Equity Office Properties (EOP), a REIT in the Long-Term Portfolio, has agreed to a cash buyout by Blackstone Real Estate Partners at $48.50 per share. I will be selling my shares as soon as I am able to do so. I'm going to be totally offline tomorrow due to some offsite meetings, so I figure it won't be until Tuesday when I dump my shares.

I bought EOP on August 16, 2002 at $26.80... mostly, because I had read so much about Sam Zell and how much of a bad ass he was in real estate. Anyway, from that day up until today, a total of $8 per share has been paid out in the form of dividends, most of which were re-invested. Assuming no re-investment, you can view this as if we are finally selling out at $56.50, which would represent over 110% return over just over 4 years... this is roughly an annualized rate of 20%. Even better given that most of the dividends were re-invested. Of course, I won't actually be able to get the full $48.50 selling out early. Nonetheless... a winning investment, indeed!

I will take a close look at some other REITS, as I do want some exposure to the commercial real estate market. In my retirement accounts, I currently hold HRPT Properties (HRP). Perhaps, that might be a worthwhile candidate.

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