TRADE ALERT - International Portfolio September 2024 (Incl. CEO Interview)
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 September 9th, 2024, 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 - International Portfolio September 2024 (Incl. CEO Interview)
Last week, the Fed surprised many by cutting interest rates not by the expected 25 basis points, but by a significant 50 basis points. They also signaled their intention to continue lowering rates further in the coming months.
We have long predicted that this would happen and we are pleased to see it finally play out. It is this prediction that gave us the confidence to aggressively accumulate REITs over the past two years while they were heavily discounted.
Now our patience is finally paying off as REITs have surged by 40% off their lows and some of our biggest holdings are up far more than that:
On one hand, I am happy these gains...
But on the other hand, I also know that this will make it harder for us to identify new opportunities going forward.
A year ago, you could have bought almost any REIT and earned strong returns because they were so cheap. As an example, we invested heavily in blue-chip investment grade rated REITs like Camden Property Trust (CPT) because those REITs rarely come for sale.
But the easy money has now been earned and it is time for REIT investors to become more selective.
Many of those large and popular REITs are slowly approaching fair value, but there are still plenty of opportunities among smaller and lesser-known REITs, particularly in more complex situations with more leverage, portfolio transformations, and in foreign markets.
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