This 9.9%-Yielding REIT Still Has A Lot Of Potential

This REIT remains a 'Buy'. The CRE company is an attractive income vehicle as the Federal Reserves pushes rates higher in 2018. Large allocation to floating-rate loans will serve the REIT well in a rising rate environment. Shares are reasonably valued, selling for a discount to book value. An investment in the stock yields almost 10 percent.

I continue to believe that Apollo Commercial Real Estate Finance, Inc. (ARI) is a preferred income vehicle to hold in a rising rate environment. Higher prime rates should translate into net interest income tailwinds related to the REIT's large portfolio of floating-rate debt. Shares sell for a discount to BV. An investment in ARI yields 9.9 percent.

Source: Seeking Alpha

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