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+--- Thread: Increasing REIT Exposure (/showthread.php?tid=514)
Increasing REIT Exposure - Kerim - 04-21-2014
I’ve been thinking a lot about my portfolio lately, and have decided to up my exposure to REITs some. So far, I’ve kept REITs to about 5 percent of the total value of the portfolio. That includes both the “conservative” plays like O and ARCP and the more risky mortgage REIT NLY.
Given that I am still a long way from retirement and am saving at a reasonably good clip, I feel comfortable increasing the yield / risk of my currently very conservative portfolio just a bit. I will not add any more mortgage REITs, but will look for good opportunities to add a little to the “safer” names. I’ll look for good prices on O and OHI and the such to add some shares. And today, I picked up 200 new shares of ARCP at $13.37 per share.
ARCP is a pretty young NNN REIT that has grown by leaps and bounds into the largest of its kind in only a few years. It sports a significantly higher yield than O, mostly because its balance sheet is nowhere near as solid, but also because it does not yet have much of a track record. I am hoping (danger! danger!) that it will mature into a stable and marquee name, and that one day we’ll look back on this as a great opportunity to get in on the ground floor. We’ll see. Meanwhile, I’ll happily collect dividends at a yield of 7.5 percent.
Yes, there is a bit of “yield chasing” in this move, but for the reasons I’ve stated, I’m comfortable doing it to add a little juice to my dividends.
Wish me luck!
RE: Increasing REIT Exposure - hendi_alex - 04-21-2014
Factoids has a very recent update for his data/analysis for both health care REITS and apartment REITs. Might be worth your time to click on the two links to his comparative tables. Factoids is also a respected contributor to S.A.
http://premium.investorvillage.com/smbd.asp?mb=5027&mn=4384&pt=msg&mid=13751421
http://premium.investorvillage.com/smbd.asp?mb=5027&mn=4383&pt=msg&mid=13751418
RE: Increasing REIT Exposure - earthtodan - 04-21-2014
I own 170 shares of a somewhat unconventional REIT called Hannon Armstrong Sustainable Infrastructure. (HASI) provides structured finance products for renewable energy and infrastructure development. They went public in 2013 but they have a longer history as a privately held company. Being close to this industry myself, I appreciate the growth potential of what they're doing. A good webcast explaining the company is here: http://wsw.com/webcast/roth28/hasi/ You have to click the "next" button to follow the slides.