I was just wondering if there are any REITs that are based on the RR industry? Not transportation in general; but specifically RR companies.
JimA
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Not that I am aware of. Some street railroads and probably interurbans were built with easements rather than ownership. But most “steam” railroadsown their right of way.
After the Illinois Central in the 1850s most western railroads were built with massive federal land grants. Some of that land was later part of timber and minerals companies. Of course the railroads heavily promoted sale of their lands to farmers and ranchers as a source of income and to build economic activity along their routes that would later provide passenger and freight traffic for them.
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I looked into reit database and there is none available. You can find more details at https://www.reit.com/
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Thanks for the link. Looks like I would need to invest directly in to specific RR companies. Hmmmm.
JimA
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We have a Railroads discussion board where we try to keep up with current trends.
Rail traffic seems to be slowing a bit with the slowdown in China and slowing economy. Transportation is a sensitive leading indicator. You expect a downturn during a recession as shipments slow.
So far railroad stocks have done reasonably well. Most pay nice dividends. The Norfolk Southern derailment implies more regs coming. Union issues mostly about sick time seem to have been resolved. Shortages of crews from over trimming earlier has created some problems. They are hiring.
We have only six railroads to choose from. BNSF is owned by Berkshire Hathaway. Union Pacific is the leading western railroad in competition with BNSF. In the East its Norfolk Southern and CSX. Panama Canal Expansion and deeper ports on the east are giving them a boost.
CN bought Illinois Central a major north south railroad. Canadian Pacific operates in the northern states but recently bought Kansas City Southern which goes south from Kansas City to Texas and into Mexico where it serves a west coast port.
Chicago to Texas route is also served by Union Pacific and BNSF.
Take your pick. All seem to be doing ok.
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Those are the magic words! Thanks for the info, I’ll add the RR board to my list.
JimA
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2.5% dividend yield when 10 year offers 4.3% and increasing… I don’t know. Steady growers like railroads are priced 18 to 20 PE in this interest rate seems higher valuation.
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Yeah, my cursory review showed very low yields, especially compared with my favorite REIT Realty (O).
JimA
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