Tuesday, July 3, 2012

Sold LTC Properties

I do not want a REIT to be my largest holding.

I sold 33 shares LTC Properties (LTC) at $37.37/share + commissions.  I decided to to prune back the position since it has increased in value immensely and has overtaken PM as the top holding in my portfolio.  I never meant for LTC to be a top holding, it more or less happened by accident.  The original purchase was made in March 2011 at around $28 and I averaged down last August when it was trading around $23 (I couldn't resist).  I then dripped the shares for 6 months until it recovered to the original purchase price.  Using the average cost basis I booked a 53% total return profit.

I plan to use the proceeds to buy shares in a different REIT.  I like SNH specifically at this point in time.  I need to spend time researching the sector, I'm looking to find a decent yield.

3 comments:

  1. When it comes to REITs, I love the idea of the healthcare focused ones. I'm a bit bullish on mall-based REITs as well over the long term. Looking forward to watching your moves.

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    1. Due to my profession, owning real estate is not practical. I move every 1-3 years. I devote a portion of my portfolio to REITs accordingly. REITs are nice because it's easy to find a healthy yield. Some of my favorites are listed in my watch list, but I started looking at others such as HCN, HCP, and NNN. I'm going to stick with health care for now, but might look at other types in the future.

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  2. I first bought LTC March 2011 in my taxable account. I decided REITs should be in my ROTH and then transferred it a few months later.

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