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REIT Recommendations=================== Recommendation #1 =================== This first REIT is the largest and most geographically diverse private landowner in the nation, with over 8 million acres of land in the USA. This company produces lumber, plywood and medium density fiberboard. They have 10 wood product manufacturing facilities in the Northwest. In 2007, this company gained 4.02%. Pretty remarkable considering they are in an industry that is heavily tied to the current housing crisis. However, their prosperity stems from the fact that the company utilizes its land not only for timber, but also for the natural resources that may exist. It extracts minerals and produces natural gas from the property they own. Land, unlike housing, cannot be created. There is only so much land on the face of the earth. It is highly probable that the value of land shall increase every year for eternity. For the past 91 years, the value of lumber has increased annually by 3% more than the rate of inflation. Its current dividend yield of 3.6% becomes more attractive when you filter in the probability of capital appreciation. This REIT gives the individual investor the opportunity to take advantage of the growth in the value of timber and timberland. It is a conservative investment with the strong possibility of double-digit returns. =============================== Company: Plum Creek Timber Co. Symbol: PCL ===============================
=================== Recommendation 2 =================== ======================== Redwood Trust Inc. (RWT) ======================== Redwood Trust, Inc., together with its subsidiaries, invests in, finances, and manages real estate assets in the United States. It invests in residential and commercial real estate loans, and in asset-backed securities backed by real estate loans. The company credit-enhances loans by acquiring and managing the first-loss and other credit-sensitive securities that bear the credit risk of securitized loans. Redwood Trust qualifies as a real estate investment trust (REIT) for federal income tax purposes. As a REIT, it would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its shareholders. The company was founded in 1994 and is based in Mill Valley, California. Current Dividend Yield: 7.20% 52 Week Range: $24 - $66
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