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REITS moves in portfolio

CrashCrash
edited April 20 in Other Investing
...Looking for the new Real Estate-oriented destination for the PSTL $$$, once I do sell PSTL.
This morning, I'm focused on just 2 prospects, trying to keep it simple, and not lose my shirt.

One is Ryman: RHP.
Per M* it's today at a -6% discount to NAV.
4.2% dividend.
Per Stock Rover: 2.4% of float is Short. Doesn't seem like an awful number.
For 2023, the company reported a blow-out year, utterly amazing profits. Record-breaking.
https://www.morningstar.com/stocks/xnys/rhp/quote

***************************
Starwood: STWD
Reads like more of a R.E. finance outfit. But they do directly own properties, too.
Per M*: right now priced at -17% discount to NAV.
Div yield = 9.91%, but no raise in div, going back several years.
Per Stock Rover: "Short of Float" =4.9% looks concerning.
https://www.morningstar.com/stocks/xnys/stwd/quote
...Just mulling and thinking. No rush.


Comments

  • Sven
    My past REIT investment through OEFs has been spotty at best. So I will try another approach by buying home builders instead given the limited residential home supply. Two builders I am tracking: DHI and BLDR.
  • CrashCrash
    Sven said:

    My past REIT investment through OEFs has been spotty at best. So I will try another approach by buying home builders instead given the limited residential home supply. Two builders I am tracking: DHI and BLDR.

    Sounds like a plan. In that direction, I have tracked but never bought the timber-lumber outfit in Canada: West Fraser Timber. WFG. My own OEF attempts to make money in R.E. were just short of disasters. Most assuredly negative experiences. But I just somehow feel the need to keep a finger in that particular pie.
    https://www.morningstar.com/stocks/xnys/wfg/quote
  • yogibearbullyogibearbull
    Fido has a less volatile real estate hybrid FRIFX (RE equity & fixed income) in addition to all-equity FRESX. Rising rates have hit RE. Benchmark is ETF VNQ.
  • CrashCrash
    +1.
  • Old_JoeOld_Joe
    Long time ago, but I got burned enough in REITs to say "never again".
  • Sven
    We left REIT investment when the interest rates rose. In the past, when the rate was kept artificially low, REIT did ok until recently. We have had success with FRIFX and VNQ. Think Devo covered this topic a year ago. Since the pandemic, the commercial RE market has not fully recovered with many empty buildings in prime real estate. Some smaller towns are recovering more slowly based on our travel experience.
  • beebee
    edited April 21
    Worth a watch - BREFX fund manager

    top-ranked-real-estate-fund-manager-jeff-kolitch-on-opportunities-in-commercial-real-estate/
  • CrashCrash
    bee said:

    Worth a watch - BREFX fund manager

    top-ranked-real-estate-fund-manager-jeff-kolitch-on-opportunities-in-commercial-real-estate/

    I did watch it. That fund has a yield of 0.05%. Not enough for me to be interested.
  • CrashCrash
    Sven said:

    We left REIT investment when the interest rates rose. In the past, when the rate was kept artificially low, REIT did ok until recently. We have had success with FRIFX and VNQ. Think Devo covered this topic a year ago. Since the pandemic, the commercial RE market has not fully recovered with many empty buildings in prime real estate. Some smaller towns are recovering more slowly based on our travel experience.

    Yes, of course: higher rates are no good for Real Estate. But before the sector rallies when cuts begin, I'm thinking this is not the time to exit for good. Still have a paper loss with PSTL. Their div. Schedule is end-of-month Feb May Aug Nov. I'm betting it will be worth it for me to hold on until after the May divvie. I'm taking a trip off-island in late May, too. First time off Oahu in 5 years.
  • yogibearbullyogibearbull
    PSTL, FRIFX, FRESX in a chart,
    https://stockcharts.com/h-perf/ui?s=PSTL&compare=FRESX,FRIFX&id=p11395410017
  • Sven
    edited April 21
    Thanks @yogibb and @crash, We sold VNQ awhile back. The small position in FRIFX we had was swapped for short term HY bonds which did much better. For now, we will watch on the sideline.
  • CrashCrash
    edited April 22
    @yogibearbull

    Thanks for the chart. For my own sake, I added RHP to the comparison. Lately, they have all fallen steeply. But RHP wins. My own "Personal Rate of Return" loss in PSTL is not quite -9%. Stinky poopy. I'll take the free money they want to give me in May, then leave. The switch-over from TRP to Schwab was a comedy of errors and screw-ups and waiting and waiting and waiting.
  • CrashCrash
    Sven said:

    Thanks @yogibb and @crash, We sold VNQ awhile back. The small position in FRIFX we had was swapped for short term HY bonds which did much better. For now, we will watch on the sideline.

    Yes, my HY bonds have done rather well for me. Duration is about 3 years. Also started a position in the ETF, FALN. What's it done since I got in? It's FALLEN. What else??? Crappy snotty.
  • MikeMMikeM
    @Sven, I also like the stock, Builders Firstsource BLDR. I first bought it in 2022 after a positive article in Barrons and it did very well for me. But, I made the mistake of selling it in Dec 2023, the reverse of the Peter Lynch quote, water the flowers, cut the weeds. Big mistake because it took off even more after I sold. In any case, I'm starting to buy back in. It's dropped about 17% since it's March high. Could certainly go lower if we don't get rate cuts this year.
  • Sven
    edited April 23
    @MikeM, good to hear you had good luck with BLDR. The supply side story on residential construction is still intact. Higher material cost, labor storage, and high interest rates may dampen the demand a bit. We are building small positions in the builders instead of REITs directly.
  • Tarwheel
    I used to hold FRESX and FRIFX in my portfolio with excellent returns during my period of ownership. Several years ago (before the COVID real estate crash), I sold both funds. Instead, I have much larger holdings in FSDIX, which typically has about 15% of its assets in REITs.
  • CrashCrash
    A negative development: FSDIX shows a transaction fee at Schwab.
  • MikeMMikeM
    @Crash, fyi, all Fidelity and Vanguard funds have a TF at Schwab.
  • CrashCrash
    MikeM said:

    @Crash, fyi, all Fidelity and Vanguard funds have a TF at Schwab.

    Thanks!

  • yogibearbullyogibearbull
    Simple reason is that brokers' NTF platforms have fees in 25-50 bps range. Small firms without their own distribution units have no choice but to pay those. Even larger firms like Pimco, American Funs/Capital Group, etc pay those NTF platform fees for some of their funds.

    But Fido and Vanguard have their own distribution arms; VG's origin was as a distribution firm, but it has now expanded into index funds and in-house management for some bond funds.. Moreover, several Vanguard funds have ERs lower that 25-50 NTF platform fees. So, it doesn't make sense for Fido and VG to pay for NTF platforms, but brokers can make them available as TF.
  • CrashCrash
    ok, got it.
  • CrashCrash
    edited May 5
    New drug: EPRT, Essential Properties Trust. HQ in Princeton.
    https://www.barchart.com/stocks/quotes/EPRT/opinion
    Got a limit order in that I hope will execute soon.
    I do not like seeing the 9.5% short of float. That's too high.
    Once it's in the barn, I'll consider a trailing stop, but the stuff I own I intend to be long-term holdings. It does not always work out that way, of course.
  • MikeMMikeM
    I had an order kick in for Builders Firstsource, BLDR, today after dropping ~18%. The stock had quite a drop. It's down ~24% from its recent high...fwiw.
  • Old_JoeOld_Joe
    @MikeM - have you any idea why that drop occurred? Just curious...
  • MikeMMikeM
    edited May 7
    This is what I read @Old_Joe. It was an order I've had waiting since Feb, actually. I've owned the stock before, but got out prematurely as it kept rising, mistake, and have been waiting to get back in. My guess is their company earnings are hedging on rate cuts that may not happen now until 2024. Just like other builder and REIT stocks. edit, fwiw, my order kicked in at 163.1. A little lower than the close.
    Builders FirstSource (BLDR) saw the biggest drop on the S&P 500, down 18%, after the building product supplier issued a downbeat second-quarter sales outlook amid headwinds in the multi-family market. The company recorded mixed results year over year in the preceding three-month period.
    RBC Cuts Price Target on Builders FirstSource to $206 From $211
  • Old_JoeOld_Joe
    Thanks, Mike.
  • catch22catch22
    edited May 7
    @MikeM and @Old_Joe
    I have a list I monitor at Google Finance. I know some here don't care to travel to Google for anything. There is no login to view my link for BLDR.
    If there is any worthy news for a company/ticker, there will be more info as one scrolls down the page.
    This is the case for BLDR today, having several news items from various sources. Perhaps some of this information will be of value. We don't have an investment in this company.
  • yogibearbullyogibearbull
    Not an ETF, but BLDR is a builders' supply co. Revenues were steady, but earnings dropped sharply and guidance was poor.
    When housing slows down, homebuilders and suppliers take the first hits.
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