Mortgage REITs Are Bad Long-Term Investments

Posted on by John Sheehy

The average annualized NAV return since inception for 15 residential mortgage REITs is 3.5% The average annualized NAV return since inception for 10 commercial mortgage REITs is 2.7% Mortgage REITs have complexity, volatility, and high overhead, but many fail to  outperform unlevered bond portfolios. Large discounts may provide opportunities for short-term outperformance New Residential, AGNC, … Continue reading Mortgage REITs Are Bad Long-Term Investments

NYMT: Long

Posted on by John Sheehy

Update 5/27: NYMT released 1Q results on 5/22 so the estimates in this post are no longer relevant.  The company sold all of its first loss positions in Freddie Mac K-Series securitizations so the current portfolio has lower risk and also lower current earnings power than I expected.  Management said it hopes to announce resumption … Continue reading NYMT: Long

Artis REIT: High Rent Collection, Valuable Industrial Assets, And Low Price

Posted on by John Sheehy

Artis 5/12 unit price is a 51% discount to IFRS Net Asset Value of $15.52/unit Artis trades at 6X 2020 FFO, well below the 12X average for all Canadian REITs Artis price has underperformed the sector since 2/28 despite an improved business mix and strong rent collections The company's Strategic Review concluded without a transaction, … Continue reading Artis REIT: High Rent Collection, Valuable Industrial Assets, And Low Price