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One of the highlights of the 2013 IPO market so far has been the flood of real estate related offerings.
We have seen a number of real estate investment trusts and homebuilders roll out initial offerings, and more are on the calendar.
They are seeing demand for investment products to fuel investors' desire for yield and ways to bet on a continued housing market recovery. More real estate related offerings are being added to the calendar on a regular basis and most have held up fairly well in the aftermarket.
Good news for investors looking on the IPO market: In the next week we have two real-estate related initial offerings that are worth consideration.
Here's a look.
Two New Real-Estate Picks in the 2013 IPO Market
On Thursday WCI Communities will make its debut.
The company builds what they call lifestyle communities in some of Florida's fastest growing coastal areas. WCI also owns a real estate brokerage division that complements its homebuilding and should also benefit from a sustained recovery in the housing market.
It also operates several facilities such as country clubs, marinas and golf courses in connection with its planned developments.
WCI has been in business for 60 years (including its predecessor companies) and has developed a reputation for quality projects. Management believes they have a strong portfolio of land inventories with approximately 8,300 home sites.
The company believes that increasing population and a stronger-than-average job market is going to spur a recovery in the hard hit Florida real estate markets. The prospectus points out that Florida population continued to grow throughout the recession and growth should accelerate over the next five years.
Permit issuance has begun to rise again and builders look to meet the increasing demand for new homes in the state. In addition to stronger new home sales the brokerage division is the third largest in the state with 39 offices and about 1300 real estate agents and should benefit from stronger market conditions.
Business has been picking up in 2013 for WCI, as indicated in its prospectus filed with the SEC:
About the Author
Tim Melvin is an unlikely investment expert by any measure. Raised in the "projects" of Baltimore by a single mother, he never attended college and started out as a door-to-door vacuum salesman. But he knew the real money was in the stock market, so he set sights on investing - and by sheer force of determination, he eventually became a financial advisor to millionaires. Today, after 30 years of managing money for some of the wealthiest people in the world, he draws on his experience to help investors find "unreasonably good" bargain stocks, multiply profits, and build their nest eggs. Tim tirelessly works to find overlooked "hidden gems" in the stock market, drawing on the research of legendary investors like Benjamin Graham, Walter Schloss, and Marty Whitman. He has written and lectured extensively on the markets, with work appearing on Benzinga, Real Money, Daily Speculations, and more. He has published several books in the "Little Book of" Investment Series and a "Junior Chamber Course" geared towards young adults that teaches Graham's principles and techniques to a new generation of investors. Today, he serves as the Special Situations Strategist at Money Morning and the editor of "Max Wealth" and Heatseekers.