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Our High Yield, Value REIT Portfolio Designed For Outperformance

Published Thu, 05 Apr 2018 12:41:34 -0400 on Seeking Alpha

Investing in REITs provides a higher dividend yield compared to the broader market and with the recent underperformance, REITs also provide a better value. Buying the REIT index, however, would involve buying the bad REITs along with the good ones. Instead, I prefer to amplify and maximize the benefits of REIT investing through a hand-selected, diversified portfolio of REITs that are individually and collectively positioned to outperform. We call this portfolio 2CHYP.
Although 2CHYP consists entirely of REITs, the differences between 2CHYP and the REIT index are massive.
A 9.22% dividend yield more than doubles the index 2CHYP's 7.9X 2018 estimated P/FFO is less than half that of the index A 72.9% payout ratio is lower than that of the index at 80.7% In brief, this collection of stocks provides a much bigger dividend yield fully covered by the oversized cash flows that come from buying stocks at deep values. Since its inception on 7/1/16, 2CHYP has been a high yield portfolio but, today, that term applies more than ever before as the carrying yield has risen to 9.22% as of 3/31/18. It has always been a value portfolio, and that also applies to a greater extent today with a P/FFO of 7.9X.
This article will detail the entirety of 2CHYP's holdings, why we own each name, and how they fit together into a diversified portfolio.
Volatility begets opportunity The market price disturbances that have rattled the REIT universe have ushered in a golden age of mispricing.... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
CORECIVIC 19.18   14.3 1.34 1.76 8.96
KITE REALTY GROUP TRUST 15.50   0.0 -0.55 1.27 8.20
IRON MOUNTAIN 35.17   27.7 1.27 2.44 6.96
VEREIT 8.50   0.0 -0.16 0.55 6.52
HERSHA HOSPITALITY TRUST 17.26   0.0 -0.38 1.12 6.41
GRAMERCY PROPERTY TRUST 27.49   38.2 0.72 1.50 5.46
UMH PROPERTIES 13.75   0.0 -1.54 0.72 5.23
STAG INDUSTRIAL 28.88   37.0 0.78 1.43 4.97
LASALLE HOTEL PROPERTIES 32.06   0.0 -0.51 1.13 2.73
PEBBLEBROOK HOTEL TRUST 30.88   110.3 0.28 1.52 1.70
GOVERNMENT PROPERTIES INCOME 6.87   0.0 0.00 0.00 0.00


Older articles featuring Corecivic (CXW):
Your 50 Real Estate WallStars By Yield And Target Gains For February 2020
Our 10% Yielding REIT Portfolio Heading Into 2019
Our Intelligently Diversified High Yield REIT Portfolio Designed For Outperformance
Tweaking My REIT Yield-Hog Screen For Better 'Distribution Quality'
Our High Yield REIT Portfolio Designed For Outperformance
Screening To Shield REIT Yield Hogs From The Butcher's Knife
'Safer' Dividend Real Estate Stocks Led By CoreCivic, Ellington, EPR, & Cherry Hill, By Broker December Targets
Niche Industry REIT Yields 7.5%, Strong Balance Sheet, Near 52-Week Lows, 11% Below Lowest Price Target
Top 'Safer' Real Estate Dividend Stock CoreCivic Boasts Big Gains, Per November Broker Targets
High Yield Dividend Stocks Are Equity Junk Bonds