SargeX wrote: Hey CSC
I sure always enjoy the detail you put into your posts.
When I first retired back in 2013, I was a huge fan of REITs as I wasn't sure if we were going to be able to generate enough income from our portfolio to cover our expenses. As time went on, I formulated a solid income strategy and realized we would have more than enough. REITs then didn't look quite as good to me so I did some serious re-evaluation which led to lots of house-cleaning.
Here's our history:
- still hold
DIR from Sept, 2013,
NWH from Oct, 2017, amd
GRT from Jan, 2018. GRT was a replacement for AAR (see below).
- as it sits now, REITs are 15% of the total book value of our portfolio. We use book% rather than current% because we don't trim for the sake of trimming,
- take-overs:
AAR (Jan, 2018),
DRG (Dec, 2019),
NVU (Feb, 2020),
BPY (Jan, 2021). I have a rule to sell right away on any take-over annoucenment so the dates may not match the actual take-over date. We did really well with AAR and NVU, decently well with DRG, and small profit for BPY.
- sells for various reasons:
REI (sold with online retail threat and made good dough),
D (got sick of it and took our only REIT loss),
AX (got sick of it and made tiny profit),
HR (got sick of it and made small profit),
WIR (gave up too early so missed the take-over by a few months but made a small profit),
MRG (was a replacement for part of NVU but didn;t work out so sold for a small profit).
All in all, we've held 13 REITs.
We're usually buy & hold but obviusly REITs are a major exception to that rule. I guess when the dust settles, I don't like them anywhere near as much as the other 4 sectors we hold - banks, utilities, midstream, and telcos.
Sort of interesting stuff (to me and maybe some other people :-)
Ciao
Sarge
CanSiamCyp wrote: Hey again Sarge!
I noted your comment to May: "
We are now actually down to only 3 REITs - DIR, GRT, and NWH. I had looked at SMU but yield was a little too low for what we like. I think we'll just stick with the 3 from now on."
I actually did a back-of-envelope review of our history with REITs a couple of days ago. Starting in 2013 and up to the present, we have bought into a total of 20 different REITs (17 public and 3 private [Skyline]). Of those 20 original buy-ins, I can summarize the outcomes as follows: - 5 were taken out by private equity funds (AAR.un, RUF.un, MST.un, ACR.un, HLP.un) - all were taken out at a capital gain - some quite sizable
- 1 was sold as a tax-loss harvesting exercise cuz it was a total dog in terms of performance in recent years (HOT.un)
- 2 have performed relatively weakly (SOT.un and HR.un) and are currently slightly in the red cf. their respective ACB values - BUT I stll have hope that they will pull up their socks in the near future
- 12 are well in the green, have performed beyond my expectations, and continue to do so up to the present
So I am a major, major fan of REITs! I note that several articles have recently cited studies showing that real estate assets are an essential portfolio component during inflationary periods - which we may or may not be entering into.
As May stated - Tur do will be waiting for the final tax bill due on the unrealized capital gains in our portfolio - currently running in excess of $1.2 M (i.e., on the total portfolio not just the REITs).
Cheers!
P.S. I noted that your 5 or so posts on DIR.un in recent days haven't attracted the usual cluster of up votes from your fan club. What happened to your "cheerleaders"? You must miss them - just like Tu rdo misses his when he is "out of office" - or maybe he takes them with him when he travels - as per the report that when some indigenous folks were protesting outside his $18.5 M beach rental property in Tofino, he sheltered in place and sent the help out to say SORRY to the protesters! God that guy is such a Poster Boy for White Priviledge it just makes you wanna laugh - if not cry!