Sold 100 shares of Harju elektre🛠 (HAE1T) for 8,34€/share. Bought 10 shares of SL Green Reality🏢 (SLG) for 63,7$/share. Net result: annual post-tax dividend income +9,2€. Remaining cash +270€.
Yup I decided to sale remaining Harju electric shers after its price was boosted by speculative news about its owned IT start-up. The price wen up by 50% in just few days and yield after tax declined to just 1,4%. With its EPS of 0,25€ P/E reached x33 (!). This was just too much so I pulled the plug. Sale brought me whooping +211% or +565€ profit from purchase price of just 2,65€. This decreased our forward post-tax dividends -11,9€ as company paid 0,14€/share in 2020.
Ok so were did we put all that cash. It went to another REIT I was eyeing for some time. I wanted to own some of that:
Yes the good old NY and its office skyscrapers😎 And the largest landlord in NY office is SL Green that own close to 1 million m2 of offices in Manhattan. And size matters in this business. SLG was at top3 in my Office REIT peer comparison. Since other 2 were out of reach for me this was the rational choice. Company started paying monthly dividends from 2020 March 0,303$/share and paid special dividends at 2020 Dec after sale of one of its properties. With purchase price of 63,7$ after-tax dividends yield 4,0%. That bit lower then Baltic horizon 6,9%, but slightly higher then Reality income 3,3% YOC. Company reported 1,54$/share FFO at 2020Q4. If annualized that’s 6,16$/share FFO. This lands to payout ratio 59% and P/FFO 10,3x. Dividend looks to be safe and share price undervalued. Balance sheet looks more or less ok with leverage 7,7x (5,5-0,4/0,66bn$) and equity ratio 43% (5,5/12,8bn$). Could be slightly better as for a REIT but im ok taking into account its low P/FFO. So this purchase bought us post-tax +21,1€ dividends or net result +9,2€ dividends growing forward estimated dividends to 1.030€ and 270€ remaining cash.
Ok so now I have 3 different REITs: office -SLG, large malls – SPG, single tenant neighbourhood malls – O. Looks like im missing warehouses now, but I think im full in REIT field for now as it makes 18% or 4,3k€ of my portfolio.