WPC

[hendi_alex]

I pulled the trigger on WPC today @$64.88. Have been tracking the issue for some time. Over the past several months, the share price has had real resilience in bouncing from the $65 support level. Dividend growth has been excellent going back to 1998, with strong acceleration the past couple of years. The company often has an extra large dividend in the last quarter as excess revenue gets distributed.

WPC is a property REIT with excellent management and wide diversification of assets. Current yield is just above 5%. I would be comfortable holding shares for long term, but would probably not go above a 4% weighting. Currently am at 2% weighting.

[Kerim]

Best of luck with the trade, hendi! Personally, I am all REIT-ed out at the moment. My allocation isn't too large, so I should be doubling down after the punishment most all REITs have taken in recent months, but I can't bring myself to do it. Consumer staples is about all I have the stomach for at the moment.

[hendi_alex]

I was all out of REITs for a while as prices had just gotten too high for my taste, plus facing the prospects of rate increases. Started easing back in recently after the sector hit, but won't take on much exposure in front of the other side of the fed. rate cycle.

Current REIT exposure (av share cost)(weighting): CSG ($7.46) (2%) O ($39.42)(1.5%) WPC ($64.88)(2.3%)
total weighting about 5.8%

Mid point in the next rate increase cycle I would like to be weighted at closer to 10% and into the next easing cycle perhaps 15%-20%. I remain cautious wrt to property REITs and will likely buy no more in front of rate increases.