I appreciate the article, and I have no emotional attachment to this one. If the thesis changes, I would like to be quick to pull the plug and redeploy. I think you have done that well in the past. At the highest level, would you say the thesis for AHH is that they should (over time) make progress towards becoming a blue-chip REIT? And if they start doing things which are inconsistent with that goal, then it might be time to bail?
Indeed I have bailed before when my thesis changed. I never hang on out of hope. I would stay in AHH so long as they don't go backwards relative to becoming a blue-chip REIT. But I'm hoping that the market gets happy enough about them at some point that I can flip the position into something that is already there, at the same yield. I would also exit if I saw external trouble on the horizon, though one's crystal ball rarely works that well.
What is the thesis as such? It is that they will, at minimum, continue to make good real estate decisions that lead them to grow in ways that do not place shareholders at more risk.
Thanks Paul. Excellent, as always. AHH management appears to think like owners (which they are, of course...and founding owners at that)....that's great. They seem like solid business people. I agree with you that their dividend is too high and have trouble understanding why they recently increased it by 5%. They had a solid quarter but not "lights out". It seemed premature to me. Pausing or increasing it ever so slightly would've made more sense to me.
Hi Paul. I have added to AHH recently, but lightly. It is an important but not a huge position for me. I have appreciated their astute management, and of course their dividend; your article made me appreciate how they need to make sure they stay back from and back off from dangerous boundaries. Thanks.
Great article as always, Paul! Everytime I read one of your pieces, it just reminds me of how little I know in evaluating REITS. Much to learn. I just tell myself to take baby steps. Thanks for all you do!
I appreciate the article, and I have no emotional attachment to this one. If the thesis changes, I would like to be quick to pull the plug and redeploy. I think you have done that well in the past. At the highest level, would you say the thesis for AHH is that they should (over time) make progress towards becoming a blue-chip REIT? And if they start doing things which are inconsistent with that goal, then it might be time to bail?
Indeed I have bailed before when my thesis changed. I never hang on out of hope. I would stay in AHH so long as they don't go backwards relative to becoming a blue-chip REIT. But I'm hoping that the market gets happy enough about them at some point that I can flip the position into something that is already there, at the same yield. I would also exit if I saw external trouble on the horizon, though one's crystal ball rarely works that well.
What is the thesis as such? It is that they will, at minimum, continue to make good real estate decisions that lead them to grow in ways that do not place shareholders at more risk.
Thanks Paul. Excellent, as always. AHH management appears to think like owners (which they are, of course...and founding owners at that)....that's great. They seem like solid business people. I agree with you that their dividend is too high and have trouble understanding why they recently increased it by 5%. They had a solid quarter but not "lights out". It seemed premature to me. Pausing or increasing it ever so slightly would've made more sense to me.
Thanks, Bill, and I agree. It seems to me that they don't have the public REIT game figured out yet. We can hope they make progress.
Hi Paul. I have added to AHH recently, but lightly. It is an important but not a huge position for me. I have appreciated their astute management, and of course their dividend; your article made me appreciate how they need to make sure they stay back from and back off from dangerous boundaries. Thanks.
Exactly. You are welcome.
Great article as always, Paul! Everytime I read one of your pieces, it just reminds me of how little I know in evaluating REITS. Much to learn. I just tell myself to take baby steps. Thanks for all you do!
You are welcome! Lots to learn indeed.
Paul