TRADE ALERT - Core Portfolio February 2025

Dear Landlords,

I want to extend a warm welcome to all our new members! We recommend that you start by reading our Welcome Letter by clicking here. It explains why we invest in real estate through REITs and how to get started.

As a reminder, our most recent "Portfolio Review" was shared with the members of High Yield Landlord on February 4th, 2025, and you can read it by clicking here.

You can also access our three portfolios via Google Sheets by clicking here.

New members can start researching positions marked as Strong Buy and Buy while taking into account the corresponding risk ratings.

If you have any questions or need assistance, please let us know.

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TRADE ALERT - Core Portfolio February 2025

We have big news from BSR REIT (HOM.U:CA; BSRTF) this morning.

The REIT announced its biggest deal since its IPO in 2018.

They are selling a $618 million dollar portfolio, representing roughly 30% of their assets to AvalonBay Communities (AVB) at their net asset value. This resulted in a $111 million profit, representing about $2 per share.

We have long argued that BSR REIT was undervalued, trading at a steep discount to their net asset value, and that the management was well-aligned with shareholders and likely to force upside realization if the market failed to close the valuation gap.

Therefore, this deal strongly validates our investment thesis.

It is very beneficial for four reasons: