PORTFOLIO REVIEW - March, 2025
PORTFOLIO REVIEW - March, 2025
Table of Contents
Opening Notes
Notable Changes to Our Portfolio Holdings
Notable Changes to HYL Ratings
The Core Portfolio (Our Main Portfolio)
The Retirement Portfolio (Our Secondary Portfolio)
The International Portfolio (Our Optional Portfolio)
1- Opening Notes
REIT earnings season is well underway and it is leading to significant volatility that astute investors can take advantage of.
As usual, the market is often overreacting to short-term news to the upside and downside.
The market is excessively focused on short-term results, which often causes REITs to trade down significantly when they fail to meet Wall Street’s short-term expectations. Likewise, REITs may occasionally overshoot to the upside as they announce particularly good results.
In reality, real estate should be valued based on decades of expected future cash flow, so the impact of one quarter or year shouldn’t be that significant.
We anticipate that this will create intriguing opportunities for capital recycling in the upcoming weeks as we divest some holdings to reinvest in others.
An example of this is our recent disposition of Farmland Partners (FPI), which surged following its good quarterly results. At this point, there is limited upside left, and our capital is better invested elsewhere. We expect to take advantage of similar situations in the coming weeks to redeploy the proceeds into new opportunities.
One of those new opportunities is Vail Resorts (MTN), which we invested in just a few weeks ago. The mountain owner is priced at a decade-low valuation, and we think the company is well-positioned to bounce back in the coming years and potentially double in value. Our position size is still small, but we would gladly buy more of it as new capital becomes available.
In the upcoming weeks, we will continue our capital recycling strategy, leveraging market volatility to enhance our portfolio for greater gains in a future recovery.
Finally, as the earnings season comes to an end, we expect to conduct many REIT CEO interviews. This includes:
VICI Properties (VICI)
Agree Realty Capital (ADC)
Whitestone REIT (WSR)
Gladstone Land (LAND)
Modiv Industrial (MDV)
Kite Realty (KRG)
Easterly Government (DEA)
H&R REIT (HR.UN:CA)
Some of these interviews may even be video. If you have any questions for these REIT CEOs, let us know, and we will include them.
To be clear, none of this is certain yet. We are still in the middle of due diligence and have not made any decisions.
But as we finish our research, you will be the first to know. Stay tuned for our next “TRADE ALERTS,” and if, in the meantime, we can help with anything, let us know!
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2- Notable Changes to Our Portfolio Holdings:
We had four "Trade Alerts" since our last Portfolio Review:
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