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5-Star Stocks Poised to Pop: Winthrop

By Brian D. Pacampara, CFA - Updated Apr 6, 2017 at 11:56AM

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Market-trouncing returns could be written in these five stars.

Based on the aggregated intelligence of 165,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, office REIT Winthrop Realty Trust (NYSE: FUR) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Winthrop's business and see what CAPS investors are saying about the stock right now.

Winthrop facts

Headquarters (Founded)

Boston (1961)

Market Cap

$276 million

Industry

REIT

Trailing-12-Month Revenue

$46 million

Management

Chairman/CEO Michael Ashner (since 2003)

CFO Thomas Staples

Return on Capital (Average, Past 3 Years)

(4.7%)

Cash/Debt

$38 million / $235 million

Dividend Yield

5%

Competitors

Acadia Realty Trust (NYSE: AKR)

Regency Centers (NYSE: REG)

Brandywine Realty Trust (NYSE: BDN)

Sources: Capital IQ (a division of Standard & Poor's), Yahoo! Finance, and Motley Fool CAPS.

On CAPS, 96% of the 234 members who have rated Winthrop believe the stock will outperform the S&P 500 going forward. These bulls include All-Stars bobbyake and Jeffreyw, both of whom are ranked in the top in the top 1% of our community.

Late last month, bobbyake brought the head honcho's positive outlook to our community's attention:

The CEO with Winthrop Realty talks about the strong market for [joint venture] REITS and I agree with him. If the recovery is the real deal, REITS all around are going to go up big. I expect them all to beat the market.

While REITs, as a whole, are currently one of our community's least favorite investments, Winthrop's relatively strong fundamentals continue to drive its five-star CAPS status. For example, Winthrop's cash balance represents a larger percentage of its assets (7.7%) than rivals Acadia (5.4%), Regency Centers (2.6%), and Brandywine (0.006%). When you couple that financial flexibility with CEO Michael Ashner's track-record of shrewd capital allocation, it's easy to see why Fools like Winthrop as a way to take advantage of depressed real estate prices.    

CAPS All-Star Jeffreyw elaborates a few months ago:

This one is risky as commercial Real Estate is still in decline as more small businesses are closing and large corporations are scaling back operations, new layoffs continue, and will likely accelerate next year as taxes and health care costs skyrocket and fuel inflation. Still, there will be a few savvy [commercial real estate] companies that will cherry pick and keep their best customers through the recession and be positioned for huge gains 3-5 years after the recovery begins. This should be one of them.

What do you think about Winthrop, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

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Stocks Mentioned

Acadia Realty Trust Stock Quote
Acadia Realty Trust
AKR
$21.03 (0.24%) $0.05
Brandywine Realty Trust Stock Quote
Brandywine Realty Trust
BDN
$13.26 (-0.07%) $0.01
Regency Centers Corporation Stock Quote
Regency Centers Corporation
REG
$71.77 (-0.17%) $0.12

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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