High-Yield REITs to Avoid: New York REIT Inc (NYRT)
New York REIT Inc (NYSE:NYRT) was an office-focused REIT built to take advantage of the distressed properties (office and retail) in New York City during the 2008 financial crisis. It went public in 2014 but has little to show for its “buy the bottom” strategy. As a matter of fact, it has been surprisingly volatile.
Regardless of its past performance, its current predicament is the real issue. NYRT is currently in the process of liquidating its current portfolio. If you’re in the real estate business and you’re looking to make money by selling all your properties, it’s likely you won’t be in the business much longer. And if you are, it’s not the kind of investment most people are looking to join.
NYRT is off nearly 18% year to date, so its attractive 5.5% dividend means little.