>> the issue of interest rates and the reits is complex. it's not a one-way street. obviously rising interest rates are negative for all assets generally in asset pricing. with reits you get the potential benefit of in a rising interest rate environment oftentimes the economy is growing and that provides pricing power to the landlords to increase rents, to compensate for the rise in interest rates, so it's a mixed picture and most time periods where interest rates have risen over the last 20 years, reits have done well as opposed to not. >> i would imagine the more the people pile into these products, which i imagine they will chasing the returns that they see, doesn't that mean you'll get lower and lower quality issuers coming to market potentially? >> we've had a limited number of ipos to date, though each year since the great financial crisis there's been some, but what you will have in the public real estate markets for the stock exchange-listed reits is you'll get the liquidity of real estate so you'll get the realtime pricing. you're not getting in the private

we're talking about the reit and real estate investment trust but what type? is some lots out there today the funny thing is this market is exploding with all types of assets sectors and anything that can be securitized. >> there are tax considerations to pay out in the form of dividends they have that dividends component that is what makes them very attractive. cheryl: that investment reached that owns properties and some do both? and want to put that out there. some that are hot to the you like the health care trust of america of medical office building icahn by my own medical office building? to make you are dealing with the aging population so the supply-demand model is there is the long term contraction they have to pay out income over long periods of time. they are period overlong contractual period with that durable consistently predictable source of income cheryl: it creates on the new york stock exchange and then of 12% with the medical office buildings but also a senior housing. i cover real estate and i have been hearing senior housing is a top area

today they got approval for the reit structure. doubling that. going to pay out 400 million to shareholders, people are going nuts, up on humongous volume and really cool if i got in on it in advance. i did not. >> do they own apartments or rental units? >> being very careful with the reit structure. >> hedge fund paul smith and company is among the top 15 holders in allergen. >> you've still got the battle of allergen digging their heels. we'll see how it goes. most betting a deal will happen and buyers, of course. with the arbitrage here. >> are you in it. >> no, i'm not in it. >> i like indo better than value. >> just a reminder, paulson will be one of the many faces you see at cnbc delivering alpha conference. that is on july 16. don't miss it. tons of market-moving information comes out of that conference. >> bed, bath & beyond the worst performer on the s&p after a miss in the first quarter earnings. brian has a buy on the stock, did it sock you in the stomach when you saw this today? >> i hope i articulated our thoughts to our clients and

he finished his final phase reit reintegration back to normal life. he spent the last 11 days in germany. he told the staff that the taliban captures kept him in a cage in the dark weeks at a time. it will take some time for him to recovery. >> there is no set timeline. each phase that he participates in is a custom event. >>reporter:chuck hagel was criticized for not bringing him home sooner so he could answer questions about his capture. >> why was he not been returned to the united states. we have seriously soldiers returned almost immediately after they were stabilized. >> this is not a physical situation. this guy was held almost five years in god knows what conditions. can he get on his feet and walk. >>reporter:there is no timetable for his recovery at this point. he will stay at the hospital in san antonio until he is ready to join his family e. >>> "world news with diane sawyer" will continue our conference on the crisis in iraq and bowe bergdahl's return in the u.s. >>> a home is ruled arson. it investigated as a homicide. there is the scene

>> and having reit there tonight. >> some local friends of mine knew that reit had sung the nationalnthem and the blue valley breakfast and we had it recorded and also knew that one of the next steps for us in terms of broadcasting his talent locally was to have him audition for the royals to see if he could sing the national anthem. >> and then you got that phone call, as you imagine, a total surprise. what does it mean to you and your family to attend the game tonight and know that he will be up there on the big screen in that vid tape singing -- videotape singing it. >> initially it was surprising and heart-warming that they wanted to do this but we've been very vocal about having faith and people have asked why our fame has been so -- our family has been so strong and it is because of our faith. and we thank the royals to show the community that not only do we have faith as a family but our community has faith. and they've been very supportive so it gives us an opportunity to continue to spread the message to people who might be hurting, hopefully don't go through a tragedy like

i'm thinking of adds to my positions in my reits. every time they adjust the interest rates they seem to get a black eye. is the next time going to be different though? >> it's harder to build in the country now, a lot of the companies are really established and they can get credit lines and other builders can't. no, it's not to change. it will be like that. that's why i say to people, please wait for a big break in the real estate investment trust before you pile in. i think that's the right move for you. this is financial literacy "mad money" style. here's the information you need for retirement savings if your employer matches your 401(k) contributions, max that out. otherwise, stick with an ira and stick with cramer. "mad money" will be right back. >> announcer: don't miss a second of "mad money." follow @jimcramer on twitter. have a question? tweet cramer, #madtweets. send jim an e-mail to madmoney@cnbc.com or give us a call at 1-800-743-cnbc. miss something? head to madmoney.cnbc.com. huh...fifteen minutes could save you fiftee

sampras's go called hitch it does cost less here is the right from uber because between 15 or $20 on reitrate on hitch. have a co-founder. what is the hitch and? >> it is true ridesharing we identify the route that you take to take you on that route wheel people going roughly in the same direction to distribute the cost for all riders. adam: what if somebody calls with nobody else? >> we've do the affair up front based on our algorithm but that is what you get if it is alone it is still your price 61 you do something that involves social networking? >> correct. absolutely. we identify who you are riding in a car with so we will pick them up and expose you to mutual friends and interest kind i'd like the icebreaker to get to know the people that you ride with. we have had some interesting attractions. people use each other's software products recently someone from a hired pugh somebody they got tips on how to use it to appropriately so not only the price point but also that social interaction peace. liz: us in gold by could change a life. this is very interesting. to bad for those people w

the parties were reit willed to the -- were related to the bet rewards. >>> a man shot by a police officerrtinez is expected to survive. it happened saturday night after a brief police pursuit. investigators say the suspect slow ised down to let a little boy out of his car and then ran to a highway patrol car. officers say he had his hands in his waistband when he finally stopped and got out of the vehicle. that is when a chp officer opened fire. they then found a gun and drugs inside of his car. >>> about 200 gallons of gas leaked after a pickup truck crashed. that happened at about noon yesterday at the va lair hoe station. sand was used to absorb the gasoline. it's still unclear what caused the crash. >>> making their final preparations. it opens in just five weeks. yesterday the niners teamed up for a dry run for game days. and put up signs directing niner fans on how to get around the new stadium. they also want to reduce the confusion for fans taking mass transit. >> we will be able to do it through planning and you know things like this. practice. >> the first event at the state of

both of them are reits, which specialize in medical office buildings and senior assisted buildings.to you. >> thank you very much. and it's 7-1. stock split happens this week. are you getting bullish? . >> i am bearish on temperature. >> sue, down to you. >> well, will apple and tech drive the markets higher in june? sell in may and go away didn't apply this year. apple posted gains of more than 6%. bob is the chief market strategist at banyan partners. jeff clines is at lpl financial, he's bullish on tech. welcome to both of you. bob, i'm going to start with you you're here with me at post 9. we've heard about the new yosemite. >> i don't know very much people that will rush out and buy an apple product, sen there are going to be temperature peek interested in it. but i'm interested in apple's development going forward. are they going -- it's just going to drive the overall industry? apple has that ability. it's also an undervalued stock. and it's not because.stock split that i'm going to be interested, but it will -- >> absolutely. >> jeff, let me turn to you. one of the worries d

. >>> in the meantime, a good day if you're a reit. >> carl, i bet you never got this news from the irs like you said, up about 20% on the day so far after getting irs approval to convert into a real estate investment trust. as a result of the change, iron mountain ups the earnings per share guidance by 40% to a $1.52 a share. why the increase? reits do not pay income corporate tax as long as they distribute the vast majority of the income as dividends to shareholders. a slightly different measure of earning paid, but iron mot shares up 20 % on that bit of news on this big day. back to you. >> a gift from the irs. dom thanks. the dow is down triple digits this morning. the ipo avalanche is here on the big board watching servicemaster, eating the cookies filled with crickets, and, also, the big ipo of the morning is gopro, awaiting the first trade as you heard. you don't want to miss coverage of both. we have the founder of swiss s cameras to talk about what gopro should not do. we'll be right back. for every hacker, crook and nuisance in the world. but systems policed by hp's cyber secu

the fact that he's here in court indicates that they have now read him his miranda reits.s access to the lawyer. he could have waived this hearing today. so it indicates that at least for now he's decided to stop talking to the fbi interrogators that have been questioning him. >> ivan perez, thanks so much for your report. coming soon to main street, usa, the weapons of war. >> i wonder what the campaign slogan was in mississippi the past couple of days, uncle toms for thad. >> how the talking heads missed the lesson of the mississippi primary runoff. at least according to this talking head. . we can save big with priceline express deals. hey you know what man, these guys aint no dragons. they're cool. these deals are legit. yeah, we're cool. she's cool. we're cool. priceline express deals are totally legit. check this, thousands of people book them everyday and score killer deals. now, priceline is piling on even more savings with its summer sale. so grab your giant beach towel and enter code summer14. look at me enjoying the deals. at od, whatever business you're in, tha

that's a health care reit, okay.t was at five, six, it would be -- i think this stock is not done going higher. i still like santander. and we've got ge diversified with a good yield and actionalertsplus.com names. what we have is a health care play, we have a bank, we have a forestry play, an oil and gas play, diversified industrial. that's kind of exactly what i want. why don't we go to joe in massachusetts, joe? >> jim! big boo-yah! >> oh, i love this. go ahead. what do you got? >> caller: my five stocks are blackstone, suncore, delta, verizon, and coke. nice mixture of yield and growth! you know i like that. blackstone, long time recommendation, private equity firm selling off to hilton, looks good. coca-cola, i think the quarter was maybe a resumption of growth coming, i'm not sure, but looked okay. the beverage, delta, the airlines got hit, everyone runs to them immediately. i run through them like the airlines. verizon, what a fabulous yield. suncore, we have energy, we have telco, private equity, it's called

republican senator kelly ayotte want a full read out about ahmed abu khattala at what point he was read his reits and stopped talking. >>> no grapevine tonight so we can concentrate on today's supreme court rulings. and where do we go from here? keep smoking... ...because it was easier to smoke than it was to quit. along with support, chantix (varenicline) is proven to help people quit smoking. it's a non-nicotine pill. chantix reduced the urge for me to smoke. it actually caught me by surprise. some people had changes in behavior, thinking or mood, hostility, agitation, depressed mood and suicidal thoughts or actions while taking or after stopping chantix. if you notice any of these, stop chantix and call your doctor right away. tell your doctor about any history of mental health problems, which could get worse while taking chantix. don't take chantix if you've had a serious allergic or skin reaction to it. if you develop these, stop chantix and see your doctor right away as some could be life threatening. tell your doctor if you have a history of heart or blood vessel problems, or if you develo

military investigators have not read bergdahl his reits and he's not spoken to his parents. he's in the final phase of his reintegration program. a staff psychologist will decide whether bergdahl will be ready to venture out into public. >>> back to our top story. team usa losing to germany, 0-1. but guess what? they still advance to the next round of the world cup. good news for the usa. let's go to chicago where thousands have gathered for the big world cup match. tell me about the excitement. >> reporter: i can barely hear you. but these are some of the 20,000 fans who turned up for today's soccer match. gretchen, these are just many of the fans that came out today. every week it gets bigger and bigger here in chicago. 10,000 for the first game. 20,000 on sunday. today, during the work day, on a weekday, more than 20,000 people showed up to watch this match. people here are saying even though we lose we still win in this because the usa is going on. america's most viral fan, teddy roosevelt. gretchen, back to you. >> all right. having a lot of fun. great assignment. would

. >> and rhymen hospital, a tennessee-based reit, getting an upgrade to buy. >> quick trivia time, what venue -- don't read it. >> you just read it. >> grant olympic opri. this is the owner of the grand ole opry and other resource. rhp is the ticker. nice up side there. now to talking numbers, where we look at one stock fundamentally and technically. we talk numbers, literally. >> we do. >> today pfizer, a dow laggard. guess what? mark licken felt, mark, any reason to buy shares of pfe right now this. >> i don't think so. i mean, i'm not a raging bear on the stock. i'm kind of just mer. meh. >> that's basically the stock performance the last couple years. impgts there's nothing to be excited by, especially from an innovation standpoint. just better stocks out there. and i think management has a bit of a reputation problem right now after kind of bugling the astrazeneca deal. and i think the deal was really kind of born out of a place of financial engineering and that's what's really matters in the biotech and pharma sectors. investors want to see true innovation. so i don't see -- >> th

it is the second largest student housing reit in the world and it is located in markets with tremendousining me now is campus crest ceo ted rollins. howing and this is all bundled together in a real estate invest trust with a pretty nice dividend. >> that's right. liz: what is the dividend? >> the dividend is 7.6%, liz. it is a great opportunity. liz: great opportunity. talk about how it works. >> the company is really founded on a vertical platform and what we're able to do we control the asset from the beginning of the story to the end. what i mean by that, is that we have a development company, a construction, general contracting business, operations business, property management business and asset management business. that allows us to deliver superior asset to typical discount after general contractor 20 to 25%. so our investors are getting assets at a discount because we control the delivery methodology. liz: now, you would be getting the stock at a discount. it is down 30% year-over-year. >> yes. liz: you went publicly recently. you've been here before. we always like to bring pe

reits up 15%. i mean they're fine for dividend and income plays in a portfolio.of total return expectations i think it is, it is probably an opportune time to be shifting away from those into some cyclical parts of the market that have not represented leadership thus far. david: along inflation we usually see interest rates going up. it is hard for them to go down any further. would we, perhaps, change our bond portfolio because interest rates would be going up a bit? >> we, i would want to be a little bit short, maybe relative to my duration benchmarks. maybe that is just a fancy way of saying, be intermediate maturities. certainly not time, i don't believe, to be moving out on the yield curve. i still think you want to be in corporate bonds. you get not much spread above treasurys but it's a little bit. but you certainly don't want to be taking a lot of duration risk. i think 10-year yield still has a chance of hitting 3% by the end of the year. that is looking a little less likely but i think the move is clearly higher in yield over time as the economy picks u

reits, telecom, utilities, melissa, i think a lot of the equity investors do not believe rates will stay low. this is where you get that disconnect between equity visitors, finally, we want to point out the complete and utter collapse of the vix. this collapse started back here in march and april, correspondenting with low interest rates and higher stock prices. melissa, back to you. >> thank you very much, bob. the labor market has filly regained all the jobs it lost in the agree recession. through the next hour we'll be do the health check from -- so let's bring in bob brasco and our very own steve liesman. steve, you've been taking a temperature of the economy this quarter. what's your read? >> we have a new way of measuring. we call it better/better, worse/worse. better will better means better than the forecast, better than the prior, worse than the forecast and worse than the prior month. here's our list here. it's definitely missioned. housing starts, better/better. vehicle sales, and then looking at the other side, when we looked at the worse/worse, not all that bad. the trade de

there, of course, are the apartment reits. >> look at numbers we got out today. up 18%. are we at 2005 levels? no. not even close. i think there's room for both, right. maybe more people are renting right now. but that doesn't mean that these home builders aren't managing their portfolios properly. buying land at the right time. building in the right areas. i think housing as a whole as the economy improves, i believe it's definitely taking housing with it. >> but you're never going to see 2005 again. financing is just too tough. too tight. >> we don't need to. we don't need to see 2005 again, right? we don't need to see it in order for it to still be a winning trade. >> right. but the other issue is that in terms of employment growth, you still have the separation of the two classes. >> agreed. >> and you're seeing so many people that are never going to be fully employed again. so many people that are going to be part-time employees and they'll never be able to rent even the modicum of expensive or reasonable in price -- >> does that read you to a short xhb trade? >> i

talk about a reit that focuses on adjustable rate mortgage.inflation is going up you are more interested in investing in that area. you've to the a bet in mind. talk about. >> sure a lost people want to be in -- a lot of people want to be in mortgage receipts or. this is probably best-of-breed. 84 years of management expertise. based out of dallas they primarily invest in adjustable rate jumbo mortgages. current yield better than 10%. the company is trading near a 52-week high. it's a great way for people to transfer some their fixed income, long-term holding where they can be sensitive toward adjustable rate mortgages which really only have one direction to go and that is higher. david: ways to make money, if you think inflation is going higher, brian perry, terrific stuff. thank you very much. cash machine editor. liz: let's put up all the books on facebook.com/afterthebell. some of you may have is missed first couple and you need to hear those. >>> oracle's larry he will is lesson is first to jump on m&a bandwagon and the first deal in five

aren't get why reit ripping. >> i think fundamentals are better than good.upply goes up we have less than one percent growth of new growth. may be getting better, but we have a supply and demand growth of less than two, real estate fundamentals are very good. supply and demand is excellent. >> and that is exactly right, though. the bond markets are saying that the economy is ok. it is a recovery, but not a strong recovery. that is ok for you, because interest rates on like they will go up anytime soon. in thee has been a rally first five months of this year. it has increased the level of demand for income producing assets such as real estate. what the bond market is saying is, economic growth may be closer to two percent than three percent. my that -- while that may be at pretty invest -- that what -- that may be disappointing for equity investors, it is attractive for real estate. >> there are several reasons you have put them in your portfolio. one of them focuses on california. been looking at kilroy. wonder ifs me everyone learned lessons from the last r

george soros, john paulson, bill gates, all pretty sophisticated investors, are looking at reits in the> precisely that kind of capital seeks to return to investors something in the region of 15% to 18%. this happens in a market where trade availability, the cost of capital, tends to be relatively high. that is ok because at least it is not pushing down the yields or up the prices as much as we , orduring the bad years good years depending on how you look at it. the market today remains much more rational. prices are also pretty much rational. the yields have not been pushed down too far. the capital values are very down as compared to the previous pick , even if you take out the 20% as simply froth. the rest remains very down as compared to those levels. i understand you had to reduce the size of your ipo because of concerns about investor appetite. for all the positive, what do you think investors are concerned about? is it something broader about the appetite for ipos at the moment? >> i believe it has to do with the fact that the market is probably choking in paper. you choose your

you put them here in a collaborative work space owned by one of the nation's largest publicly traded reitsto be an investor in the fund. >> crystal city has always been and will continue to be a strategic value-oriented location. we happen to have 26 buildings, 8 million square feet in this location. >> reporter: the shrinking federal budget cost lost some of its tenants. >> so they sought new tenants. >> the creative types, the stem types, science, technology, engineering and math. >> reporter: types like patrick smith. >> we are creating a network of chefs that make healthy meals. >> reporter: smith's power supply is both a beneficiary of the crystal tech fund and a vornado tenant. >> i can talk to one of the other companies or ask paul his opinion. there's synergy among all of us. >> when people look back at sort of what we're doing here, i think this will be kind of viewed as sort of the diagram. >> reporter: vornado is planning to convert one of its office buildings into a 250-unit apartment building. so some these new tech workers could have a very short commute home. diana olick, cn

. >> it's interesting, dan hurwitz of a large reit which has ul ta as one of its -- owns a lot of mallsvery good things about them. >> adding stores like crazy. contrast this with the other retailers, i'm not just radio shack, the radio shack conference call, i mean hello, admit that it was bad. that was like -- there's total denial there. and i saw that there was -- i usually don't quote their stuff maybe i should using a price target to zero. >> zero good for you? >> because you can't go minus five. that's the amazing thing about stocks. >> you can do five below. >> still undervalued at 35. >> move on to my kron this morning. >> the big bear, simon, bank of america, he goes sell to buy. saying that all of thof theory there will be new fabs and no price discipline, dead wrong. he was negative negative negative negative negative. oh, positive. okay. i get that. credit suisse has been positive the whole time. >> big hedge fund name, but a lot of hedge funds in this game and they've actually gotten one right. >> but philbin and company had this one right the whole time. i don't know if yo

it will rip through the infrastructure of utilities and reits and real estate.tate asset values increasing in a rise being rate investment. that never works long term. that's why it's a very bad idea and that's just the beginning of the damage. >> larry, raising interest rates, by the way, is not the same as having a rising rate environment. >> that's right. >> in other words, the fed could do something like that and not actually see much move along the entire curve. >> look, interest rates are going to go up at some point next year or two, but they will be miniscule interest rates. whether i like that or not, yellen, bernanke, you know, bernanke with his 400,000 dinners with the hedge fund guys said you'll have below normal, below 4% interest rates on the short end of the curve so i don't think interest rates will be a big factor. i think this is a pretty good time to buy homes, buy stocks as well. still low interest rate, tax advantages, a lot of leverage and a lot of product out there and it depends where. can i just say this, when you talk about housing, it'

crystal tech fund you put them here in a work space owned by one of the nation's largest publicly traded reitscontinue to be a strategic value oriented location. we happy to have 26 buildings, 8 million square feet in this location. >> now what's so interesting here is that they don't want to just build the office space, they want to create an ecosystem. that is, bring in the tech companies to the spaces, but also fill up the entire urban space. they're going to convert an office building into micro unit apartments with shared spaces. again, it's the whole campus style of living that they believe the younger millennials will want. sara? >> very interesting. diana, thanks very much. look forward to a lot more on the intersection of tech and real estate from you throughout the day. i want to talk about the market story of the week. that would be the euro. because thursday is the ecb's most highly anticipated and important meeting of the year. everybody is wondering, how you trade the euro into that all-important meeting. right now there's a $2.8 billion bet against the euro that it will weaken o