Last summer I decided to make the plunge and purchase one of the most popular REITs among retail dividend growth investors, OHI. Well, not quite a year later and I've regretted the decision nearly as soon I made the decision to buy it. Now that prices have recovered to levels close to where I initially purchased, I have decided to sell my relatively small position to allocate the capital elsewhere with much less industry (SNFs and ALFs) and regulatory risk. There are a select few REITs that I currently own (LAMR, KIM, WPC, and CLDT) and would rather be invested in either of them rather then be exposed to the risk and rewards currently associated with OHI relative to current valuations. The funds received in connection with this sell are held in a Roth IRA account and so the capital will likely be allocated towards purchasing additional share of KHC and/or WPC where my equity positions in both of those companies also reside. Below are the details of the OHI transaction including the gain and loss calculations.
Cost basis: 72 shares @ $31.05 = $2,235.60
Sold: (72) shares @ $30.05 = $2,163.60
Total dividends received: $141.84
Net gain/(loss): $69.84 or 3.1%
Holding period: ~11 months
Annual Dividend: $2.64 for a current yield of 8.79%
Price to Funds From Operations (FFO) TTM vs. Forward est: 9.12 TTM and 10.02 on a forward estimate.
Cost basis: 72 shares @ $31.05 = $2,235.60
Sold: (72) shares @ $30.05 = $2,163.60
Total dividends received: $141.84
Net gain/(loss): $69.84 or 3.1%
Holding period: ~11 months
Annual Dividend: $2.64 for a current yield of 8.79%
Price to Funds From Operations (FFO) TTM vs. Forward est: 9.12 TTM and 10.02 on a forward estimate.
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