Earnings and dividends

REIT earnings season has begun which usually restores a fundamental focus to the markets.  CBL was the only company in 2CHYP to have reported so far, and we found the report fairly strong.  Otherwise, industry comparables gave some good insight into the performance of REITs we hold.

Weyerhaeuser (WY) had great sales growth which bodes well for CatchMark (CTT).

DCT Industrial (DCT) had excellent SSNOI which portends good things for Stag Industrial (STAG).

Kite Realty Group (KRG) was in-line with expectations but sold down relative to the market.  Historically its performance has been lock-step with Brixmor (BRX), so we would not be surprised to see a similarly tepid report from BRX.

Although our REITs have mostly not reported yet, some good news did come out on the dividend front.

Sotherly Hotels raised its dividend to $0.10 quarterly for an annual yield of 5.66%.  Armada Hoffler (AHH) raised its dividend to $0.19 quarterly for an annual yield of 5.54%, and Omega Healthcare (OHI) continued its long streak of dividend growth with a raise to $0.62 quarterly or 7.69% annually.

While we attempt to have some insight going in to the earnings of our REITs, we try not to put undue reliance on our expectations.  For this reason, we are mostly holding tight until we get some more concrete data.  This was a rare week in which we did not reposition the portfolio.

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 Snap Shot

2/3/17 2CHYP Performance since inception