Analysis

How To Stake A Claim On the World’s Most Premier Real Estate

If I asked you to think of famous buildings in the world, what would come to mind?

The Chrysler and Flatiron buildings in New York?

The Eiffel Tower in Paris?

Maybe even the former Sears Tower in Chicago.

Whatever you can come up with, they’ll likely have three characteristics: their designs are instantly recognizable, locations unmatched, and significance unmistakable. They are timeless monuments to human ingenuity and triumph, as are many trophy properties.

It’d sure be nice to stake a claim to one of those buildings, eh?

Well, it’s harder and easier than you think.

I’m sure it’s no surprise to you then that prime city real estate is priced sky-high worldwide. Buyers are paying so much for commercial buildings that their rental income is just too low. This is typical for the real-estate cycle, but we’re approaching the top of the roller coaster. It all comes rushing down at some point.

But real estate, especially trophy buildings in the most important cities, is still one of the best ways to make fortunes. When economies soften, it’s these buildings that stay rented – and at top rates. Weathering the storm is key, regardless if you’re a regular investor or a billion-dollar CEO managing a brand.

This month’s issue of Hidden Profits bridges that gap, and it contains a sleeper investment opportunity.

The opportunity is new, misunderstood, unfollowed – everything I like! – and because of these juicy characteristics, you can buy the stock today for a mere 67 cents on the dollar. It’s as if, in today’s overpriced financial centers of London, Paris, and Frankfurt, you could buy prime Class A office buildings while everyone is stretching to pay too much!

As you know, I run possible investment opportunities through my six forensic investor tests. And this latest addition to Hidden Profits passes each one with the highest grades of any to date: All A’s and A+’s.

It’s cheap and ignored, while boasting rock-solid fundamentals. And, it pays us not only one or two of the ways we like, but all three! It’s the first Hidden Profits model portfolio stock that checks all three boxes.

Here’s just one way this company “pays us first” – and it’s a doozy.

Think of it this way: when you own buildings and your stock is selling for a fraction of what they’re worth minus debt – their net asset value – do you go out to buy more overpriced buildings? Heck no! You buy your own buildings, on sale, through your own stock.

Well, our hidden profits gem this month has just completed a huge discount stock buyback and has another one going for 15% of the shares at a 33% discount – 67 cents on the dollar of real estate value. Every time it buys a share, it “earns” 33%, instantly.

And that’s on top of a 5% annual dividend, for a total of 20%, all while a 50%-100% pop to a normal value lies ahead.

There’s more. Our jewel is paying down higher interest debt and saving on interest. So, add another 5% or more to the shareholder yield to reach 25%. While we wait for the stock to zoom, management pays us by making our shares worth more.

Want to lay a claim to some of the world’s premier real estate holdings? This might be your best chance.

Good investing

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