REIT earnings season is in full swing with a large number of our companies reporting along with some peer reports that give some insight into the industries of our holdings.  So far, the reports have been strong yet poorly received by the market.  CBL showed healthy FFO/share and SSNOI growth yet it sold down both before and after earnings.  Ventas, one of the most respected healthcare REITs had favorable commentary about acute care hospitals which bodes well for MPW’s report as it is a hospital pure play.  We continue to like the stock and are maintaining the overweight.

Interest rates also played a role in the downturn for both 2CHYP and the RMS as the market is increasingly associating higher rates with poor REIT performance.  Fundamentally, this seems untrue as REITs have greatly outgrown the S&P so far in 3Q16 and we anticipate this to continue.  Next week will bring even more earnings reports which we will be watching closely to mitigate risks and capture opportunities.

Commentary may contain forward-looking statements which are by definition uncertain.  We retain no obligation to update or correct forward-looking statements should the available information change.  Actual results may differ materially from our forecasts or estimations.

2CHYP Portfolio Snapshot

10/28/16 2CHYP Performance since inception

Performance Disclaimer.  Past Performance does not guarantee future performance.  Markets are uncertain and there is no level of return that we can guarantee.  Trading of equities can result in material or total loss of principal.

2CHYP Weekly Trade Confirmation Report