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Responding to a question posed in the fall issue of Real Estate Investor, Wien & Malkin investors say that in light of the greatly reduced yields offered by investment alternatives today, they would find a reduction in initial and priority yield acceptable for new acquisitions. This is the general opinion expressed by readers who e-mailed their thoughts to this newsletter after Anthony E. Malkin commented: "We have not been able to underwrite deals conservatively and remain competitive while maintaining the 8% priority yield. If overall yields continue to fall, I'm not sure we will be serving our investors if we can't offer new investments because we are seeking returns that on a risk-adjusted basis are inconsistent with investment alternatives." One investor, who appeared to represent the general sentiment, wrote to say that, "While an 8% priority yield is attractive, it certainly is not essential....In view of the excellent long-term record of Wien & Malkin, only the total return is important to me." Another respondent indicated that current yield should remain above yields on Treasury notes and utility stock dividends. "Investors are still invited to comment on this issue," says Ned H. Cohen, vice president of Wien & Malkin Securities Corp. "We would like to get as much input as possible as we evaluate new investment opportunities." Newsletter Menu | Swift Action by W&M Enables Citigroup To Double Its Space at First Stamford Place | Ownership Stability Is A Key to Attracting Top Tenants | Strategic Capital Fund to Invest in Marriott-Anchored Deal | Ignacio Ceriani: Guarding Investors' Fiscal Health for 32 Years | Investor Q&A | Wien & Malkin LLP Supervisory Services: Family Leadership, Professional Staffing Target Long-Term Success | Investors Open to Reduced Priority Yield | Is a 'GRAT' Right for Your Estate? | Stay in Touch with Wien & Malkin Securities Back to Wien & Malkin Securities Home Page |