High-Yield REITs to Avoid: Pennsylvania R.E.I.T. (PEI)
Pennsylvania R.E.I.T. (NYSE:PEI), as its name suggests, has a pretty geographically focused portfolio of shopping malls, primarily in the Mid-Atlantic region.
This area — specifically New Jersey, Pennsylvania, Virginia and Maryland — is usually one of the more affluent regions in the country and one that tends to fall less in bad times and grow faster in good.
But this is also the demographic shopping more online as well. PEI is now trying to shift its retail focused malls into more diverse facilities with more to offer than just racks of clothes and shoes.
The dividend is a tempting 7.7%, but it’s because the stock has dropped nearly 43% year to date, not because it’s swimming in profits.