Stay Alert and Don’t Snooze
By: Tim McPartland,
While we never advocate ‘trading’ on a excessive basis, we do advocated staying aware of where you are invested (you snooze, you lose). We have to admit that we have broken our own rule and got caught holding Puerto Rican banker Oriental Finance perpetual preferred shares (ticker:OFG-B) this week. Falling asleep has cost us a couple 1/10th of a percent in the portfolio. Maybe the bigger issue is whether we continue to hold the shares (so far we have). We will do a bit more research before deciding what direction we head to with the shares.
Today we have taken a hit on REIT Chambers Street Properties (ticker:CSG) as they announced a merger with Gramercy Trust (ticker:GPT)–certainly the market isn’t cheering this tie-up. We have no intention of acting on this hit as over time we think the merger will work out well and shares will bounce back.
All through the last week or so we have also taken a big hits on apartment REIT Independence Realty Trust (ticker:IRT). There is no particular news that has caused this move lower, although the pending merger with apartment REIT Trade Street Residential (ticker:TSRE). The fall in IRT has moved the current yield up to 9.45% which makes us wonder whether should be add a few shares to the portfolio.
The losses above have moved the portfolio gain down to 3% through June which, while down from a high mark of up 4.75%, is still pretty good. It will be difficult for income investors for the balance of this year and knowing this we will ponder some further tweaks to perpetual preferreds.