Repurchased Independence Realty Trust in Zip Portfolio

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Apartment REIT Independence Realty Trust (NYSE:IRT) was sold from the 2015/2016 Moderate Duration Portfolio with Zip about a month ago at $9.68/share and significant profits harvested.  After announcing a secondary share offering a few weeks ago share prices fell all the way back to the $8.40 and we took the opportunity to repurchase some shares in the Zip portfolio at $8.64/share yesterday (Thursday).

Recall that this portfolio has performed excellently in the last 14 months with a gain of around 10%–excellent for a lower risk portfolio that is seldom traded.  This portfolio is primarily shorter duration term preferred stock or baby bonds with a couple REITs or MLPs added for a little “zip”.  When we sold our 2 REITs last month we said we would be looking to add a couple new issue in and while we didn’t know at the time it would be IRT again it makes sense since we are familiar with the REIT and it has a current yield of over 8%.  We still plan to purchase Tortoise MLP Fund (NYSE:NTG) as noted in this previous note, but we continue to wait for a favorable entry point.  We can’t wait too long as our returns will be hurt with too much cash.

The Zip portfolio can be found here.



Tim McPartland

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Tim McPartland
Tim McPartland is a private investor with over 45 years of investing experience. His analysis, research and writing is devoted to the hunt for income producing securities of all types, but in particular specializing in preferred stocks, exchange traded debt and Master Limited Partnerships.
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