Unlocking The Value Of High-Yielding Uniti Group

While our primary focus is to point out quality, low-risk REITs that can provide generous, safe and growing income in all economic conditions, from time to time we also like to point out potentially great high-risk/high-reward opportunities as spec buys.
These are not for low-risk investors, but rather for those who are comfortable with taking a small position in a REIT with a dividend at relatively high risk (compared to what we usually recommend) of a cut, in exchange for potentially market-crushing long-term total returns.
Recently we outlined why Uniti Group (UNIT) is one such unique high-yield opportunity, with several potential positive catalysts that could send shares soaring, both in the short and long-term.
Well, those catalysts appear to be coming true, specifically the imminent release of an important court ruling that has, for over a year, weighed on the share price and left Uniti struggling with a liquidity trap.
The other big catalyst, and by far the more important one to the long-term thesis, is management’s plans to use opco/propco private equity deals to achieve its long-term goal of sub 50% revenue from Windstream (WIN), an improved credit rating, lower overall costs of capital, and a safer dividend.
The first of those deals has just been announced, so let’s take a look at what it means for investors and why it could signal a game-changing phase for Uniti’s future growth.
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Uniti Is Unleashing The Power Of Private... Read more

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