This week’s Weekly shows the recent and historical performance of all of our current holdings across strategies (as well as the names on our Contenders List), and also highlights what has been working, and where we’re seeing the best opportunities going forward. The week’s theme is the ongoing disruption and opportunities the US-China “Trade War” (it’s really just a “skirmish”) is creating for selective disciplined investors. We highlight specific opportunities.
W.P. Carey’s 5.3% Yield: Is Portfolio Restructuring A Big Red Flag?
W.P. Carey (WPC) has undergone major portfolio restructuring including its significant acquisition of Corporate Property Associates 17 Global (“CPA:17”) in October 2018, and its increased M&A and disposition activity, in general. And while this activity is creating some operating turbulence in the near-term, management believes its inorganic growth strategy will be accretive to AFFO/share in the long-term. This article considers the various strengths of WPC, its dividend safety, valuation, and then concludes with our opinion about whether WPC’s current operating dynamics are a red flag or if this big-dividend REIT is worth considering for investment.
Blue Harbinger Portfolio Rebalance
We have made a significant amount of “rebalancing” trades throughout our portfolios. Most of the changes revolve around reweighting current holdings for diversification and risk management purposes. However, we have also added several new positions, as well as exited a few positions altogether. As a reminder, all of our investment portfolios are long-term in nature, so these types of large portfolio adjustments are rare. However, we do complete them from time-to-time in order to optimize our expected returns and income relative to risks, and in accordance with the long-term objectives of the strategies.
HCP's 5.0% Yield: Increasingly Safe and Worth Considering?
HCP Inc. (HCP) was forced to dramatically restructure its portfolio over the last several years as a distressed sub-industry created major challenges for one of its business segments. However, HCP is now emerging as a much healthier healthcare REIT going forward. This article analyzes the corrective actions taken by HCP to address its operating challenges, and then considers the health of the business, valuation, risks, dividend safety, and concludes with our opinion about whether income-focused investors should consider HCP for stable long-term results.
Ventas’ 5.1% Yield: Too Much Risk for This Popular REIT?
Ventas Inc. (VTR) has significantly restructured its portfolio in the last two years to address a downturn in operational performance. The adverse impacts of these changes are expected to continue through 2019. This article analyzes the various challenges that have brought Ventas to its current position, and then considers the health of the business, valuation, risks, dividend safety, and concludes with our opinion about whether Ventas is an attractive choice for investors seeking stable long-term returns.
Holdings & Performance Update: Impressive YTD Gains & Income Continue
All Blue Harbinger strategies delivered healthy gains in April, thereby extending their long-term outperformance. The strategies are positioned prudently to achieve their long-term goals, ranging from attractive income to powerful long-term growth. This report reviews performance (including specific holdings) and where we’re seeing the best opportunities going forward. Importantly, don’t get greedy—this year’s gains have been nice, but stick to your disciplined long-term strategy.
Welltower’s 4.6% Yield: Worried The Valuation Is Too High?
Welltower Inc. (WELL) has been consistently delivering sustainable and reliable growth to shareholders through its differentiated strategy and systematic capital allocation. However, it’s currently trading at a premium valuation. This article analyzes the various strengths of the company which have led it to being the top player in its industry, and then considers the health of the business, valuation, risks, dividend safety, and concludes with our opinion about whether long-term income-focused investors should be concerned about Welltower’s price getting too high relative to its value.