trading 50% under net asset value, good dividend, lots of upside

Good Balance sheet and performance

25.4

"First Industrial Realty Trust (FR) enhanced its quarterly common dividend by a penny on Tuesday, to 72 cents a share. With a hefty 7.22% yield, the Chicago-based REIT, which serves some 30 states plus Canada, the Netherlands and Belgium, is a standout among its peers. The respective payment and record dates are Jan. 22 and Dec. 31. Ex-date: Dec. 27."

income

is the nation's largest developer and manager of warehouses and industrial parks. It also operates in Canada and is starting to enter Europe. The stock recently traded at $41, down 11% so far in 2007, and yields 7.0%. Like most REITs with yields well above the average (recently 4.5%), First Industrial carries a lot of debt. But the Chicago-based REIT owns so much land that it can always sell some, if necessary. Moreover, unlike payouts from other REITs, which are usually taxed at high, ordinary tax rates, only 20% of the income from First Industrial is taxed at the regular rate. As a result, First Industrial's 7.0% yield is like getting 8.5% from most other REITs.

Dividend

Industrial

Income

Valeo (EPA:FR) – the report calls Valeo “a direct play on fuel economy” and notes that around 35% of revenues are generated from sales of fuel economy products.