This section will deal with two NMREITs which are in, what I call, “recovery mode.” It is very important for investors in this sector to be aware of risk.

These companies all own assets which can depreciate rapidly in value and use a fair amount of leverage; thus, there is always a downside.

The Crash devastated the sector, and many companies were clearly on the ropes. Most of them have recovered, although they are nowhere near Pre-Crash highs.

In evaluating companies in this sector, there are signs that an investor can identify which suggest that a company is on the way down and there are signs that it is on the way up.