Yes, alas. Reg is in my Go-Fishing model portfolio and likely will stay there. But still, entering now seems like buying high. For me right now, I would need to see a 5% yield to invest and maybe higher. For investors willing to take lower yields, I think that 4.5% is a reasonable value (so roughly a 20% drop in price). We are very likely to see that much or more in the next bear.
And adding it a separate comment; I really enjoy your articles and will become a full time subscriber shortly (I don’t dare to do it from a plane on wifi, although that is often where I have the time to read). I want to read your in depth articles on SUN and some of the energy investments, although I am a little scared to read the BSR one :)
For WSR, I did basically the same level of depth of study that you show here 16 months ago, and entered a 2% position. At that point in time I viewed it as cheap, and they had gotten rid of the former CEO so there was a catalyst. As a younger investor I am sometimes ok with a bit more leverage risk. Early this year when it got above $12 and at a ~14x multiple I exited that 2% position. One of the cases I believe I did well, I have them both ways, not bragging here. I also believe the deleveraging will take several years. The only reason to stay in above $12 for me was the potential of a buy-out. I typically don’t hold for that, it’s too much speculation. Coincidentally I put that money in BSR, your recent study, which is also highly leveraged. Still prefer CPT, although also not putting money in there right now. Why people invest in WSR at this price level…well not my cup of tea. If you want to invest in a retail REIT with higher leverage, higher dividend, RioCan (Toronto) is attractive. Still not getting my money though
w/r to regency, it is very near 52 wk high
and pays paltry 3.8% divy
at what pullback price would u open a position
Yes, alas. Reg is in my Go-Fishing model portfolio and likely will stay there. But still, entering now seems like buying high. For me right now, I would need to see a 5% yield to invest and maybe higher. For investors willing to take lower yields, I think that 4.5% is a reasonable value (so roughly a 20% drop in price). We are very likely to see that much or more in the next bear.
And adding it a separate comment; I really enjoy your articles and will become a full time subscriber shortly (I don’t dare to do it from a plane on wifi, although that is often where I have the time to read). I want to read your in depth articles on SUN and some of the energy investments, although I am a little scared to read the BSR one :)
I'm very glad to hear that because I really appreciate your thoughts and perspective. Enjoy the articles.
For WSR, I did basically the same level of depth of study that you show here 16 months ago, and entered a 2% position. At that point in time I viewed it as cheap, and they had gotten rid of the former CEO so there was a catalyst. As a younger investor I am sometimes ok with a bit more leverage risk. Early this year when it got above $12 and at a ~14x multiple I exited that 2% position. One of the cases I believe I did well, I have them both ways, not bragging here. I also believe the deleveraging will take several years. The only reason to stay in above $12 for me was the potential of a buy-out. I typically don’t hold for that, it’s too much speculation. Coincidentally I put that money in BSR, your recent study, which is also highly leveraged. Still prefer CPT, although also not putting money in there right now. Why people invest in WSR at this price level…well not my cup of tea. If you want to invest in a retail REIT with higher leverage, higher dividend, RioCan (Toronto) is attractive. Still not getting my money though
Looks to me like you did well. Agree on RioCan.