NEW YORK Boston Properties and Starwood Hotels & Resorts Worldwide are among the stocks favored by managers of the $95 million Security Capital U.S. Real Estate Shares fund, according to The New York Times. With $1.4 billion in projects under construction and $3 billion more in the pipeline, the fund managers predict Boston Properties earnings will rise 16% per year in the next five years, the paper said.
The fund bought shares in September 1998 at an average price of $28.89. Those same shares now trade above $41, and fund managers expect them to top $53 within a year. Starwood owns Sheraton, Westin and St. Regis hotels in the strongest U.S. hotel markets, yet its value is depressed because the company s managers are new to the hotel business, said The Times.
The fund bought Starwood shares in January 1999 at an average price of $25.55. Now at $32.50, it is expected to exceed $43 within 12 months. (12/3/00) SOURCE: Bloomberg News