REITWEEK is here
Each year REITs have a big conference where they present and host meetings with investors at an event called REITWEEK. We attend each year and meet with as many management teams as time allows with a goal of gaining incite on company fundamentals. While we make every attempt to discern the fundamental outlook through standard resources, there is a certain benefit to in person meetings. It gives us a glimpse at the level of competence and honesty of management teams and really helps us separate the wheat from the chaff. In next week’s update, you can anticipate all sorts of new information from the conference.
This week also had a good bit of fundamental news:
- CBL declared its dividend flat which could scare off some of the shorts who don’t want to pay the 13.75% annualized yield.
- GPT announced portfolio sales activity at cap rates we find favorable
- Interest rates on the 10 year treasury dropped to 2.16%. Lower rates often helps the NNN REITs to which we have heavy exposure
- The jobs report came in weaker than expected. 2CHYP is on balance positively correlated with the US economy fundamentally, so this is slightly bad news for absolute returns. However, 2CHYP is less exposed to the US economy than the broader markets so it is a slight positive for relative returns.
We will have our trading platforms with us at REITWEEK so stay tuned for live trades as the week progresses.
Commentary may contain forward looking statements which are by definition uncertain. 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.