Tuesday, April 23, 2013
First Stock to Double
REITs have been on a tear the past couple years. Holy cow! With the recovering housing market coupled with investors' unquenchable thirst for yield, these types of companies have reached astronomical heights. REITs are income machines and income machines are exactly what many investors want right now.
Enter LTC Properties.
My original thesis for selecting LTC as a holding in my portfolio was simple: baby boomers are aging. An aging population should translate into higher demand for nursing homes and assisted living accommodations. I was specifically looking to add a health care REIT. LTC Properties (I believe it stands for Long Term Care Properties) does exactly that.
This is a picture of one of the properties LTC owns in Fort Collins, CO. Before I joined the US Army, I lived in Fort Collins and used to work out at the gym behind this facility. Seeing properties in real life helped me understand that this isn't just a ticker symbol, this is a company with real assets! And I have seen some of them! I drove past this one more times than I can count.
There are a number of choices in the health care REIT industry, I choose LTC for reasons stated above plus I liked their conservative debt load and monthly dividend. I regularly listen to the conference calls and can appreciate the conservative yet focused management. It probably wouldn't have mattered which REIT I picked in the health care space, they've all done well.
OK I admit I don't look at my portfolio positions very often and didn't even realize this thing had doubled until today. I purchased 109 shares 05AUG2011 which is sitting on a 97% unrealized cap gain + another 13% from dividends.
Not trying to brag here, but this is the first time one of my purchases doubled. This will be the last pat-me-on-the-back post for a while...