American Tower (AMT)

REITs as a whole are having a tough time, but AMT is doing well relative to the rest. But there may be better sectors to be in at present. Prefers financials. If the sector turned up, this would be one of the better performers. Payout will continue to go up. 1.5% yield.

(Market Call Minute.) Very good business model and has rallied much better than the rest of the REITs. Higher growth but lower yield.

Provide and rent towers to companies like AT&T. The problem is that it is like a real estate company and uses a lot of money to put up towers and rent them out. There is still growth but their cost of debt would go up with interest rates.

Infrastructure investing in both developed and emerging markets can build a well diversified portfolio. This one operates in both developed and emerging markets. It is a development, leaseback strategy. The leases are long-term, contractual cash flow.

Owns cell towers and leases space out to service providers who put up their transmission gear. Has done remarkably well over many years. About 1.5% yield. The view is that they spent a lot for towers in emerging markets, but what you are buying is the future use of cell phones and the expansion of data use in emerging markets. If you see REITs start to firm up, this is one you could take a look at.

(Market Call Minute.) Likes the business. Good leverage to increased cell phone activity over time.

A global tower company. Has owned for quite some time and is very happy with it. A little disappointed on their global side. Unhedged and the US$ has strengthened while foreign currencies have weakened. However, a strong US$ is probably good for them right now as they are investing outside of the US and into these countries and able to buy assets at a discount. Stock has dropped because a report came out that undermined several of the founding tenants of this company. Most of the report was factually incorrect and blatantly inflammatory. You are getting a great return if you can buy in the low $70s. 1.5% dividend yield is going to grow at about 10%-12% a year.

Could never understand how a bunch of pylons with a radio beacon on top could generate so much income. You have no real physical asset other than a bunch of towers. These companies effectively trade like REITs. As these companies have been converted into REIT type structures, the payout of gone higher and effectively have done very, very well. In an environment where you are going to see rising interest rates in the US, he thinks the big gains are done.

This has pulled back to about where it was in March with pullbacks in REITs really across the board. Technically it looks sound. The tower companies will have very significant cash flow and dividend growth going forward.

American Tower (AMT-N) or Sba Communications (SBAC-Q)? This is tough. Both companies are real estate investment trusts that own mobile cell towers all across the US and in Latin America. In this case, you are basically buying a REIT and a fairly quickly growing one. The REIT sector has pulled back over the last 2-3 weeks as 10 year bond yields moved higher. However, this one is going to be a dividend grower and you are going to get above REIT sector growth. He would be happy owning either one.

They put up wireless towers, are considered a REIT, and a cash cow. In 5 years there will be more smartphones and tablets out there.

Have shareholder friendly policies around share buybacks and dividend growth. Went through the change from Corp to Real Estate Investment Trust which has unlocked a lot of value. He has pared back his exposure by about half in order to move money into US financials to get better dividend growth in the next 12-16 months. Still likes but looking for better dividend growth in US financials.

Basically Cells towers across the US, into Africa and Europe. 10%-11% cash flow growth year-over-year in the domestic US portfolio. You are looking at 25%-35% cash flow growth per year in the emerging markets that they have exposure to. You can bank on them growing earnings at 10%-15% year-over-year. Yield of 1.25%.

Tower REITs have had several short term pullbacks over the last 4 years. That is natural. Probably good support at $70.

(Market Call Minute) Good long term story but high valuation.