Saturday, July 28, 2012

Once again, my REIT portfolio beats S&P index by more than two to one!


This week Ventas, Inc (VTR ), one of the e-FinancialWriter REITs, reported second quarter 2012 funds from operations (FFO) of $236.0 million or 81 cents per share compared with $100.6 million or 57 cents in the year-earlier quarter.

The jump came from acquisitions including Nationwide Health Properties Inc., Atria Senior Living Group, Inc., and Cogdell Spencer. Plus there were rental increases from the company's triple lease portfolio.

Total revenue during the quarter was $616.4 million compared with $359.5 million in the year-earlier period. This topped analysts’ consensus of $592.0 million.

As of June 30, 2012, Ventas had an operating portfolio of 95 private pay seniors housing communities managed by Sunrise and 119 private pay seniors housing communities managed by Atria.

Ventas completed acquisitions worth $1.2 billion in the recent quarter and has commitments to acquire additional assets worth more than $300 million in the second half of 2012.

Management increased its recurring FFO guidance from the range of $3.63-$3.69 to $3.70-$3.74 per share for 2012.

I recommended VTR in my December 30, 2010, column. Since then it has had an average annual rate of return of 15.95%, not including dividends (currently 3.39%).

Portfolio Update
The REITs in the e-FinancialWriter portfolio continue leaving the S&P REIT index and the S&P 500 in the dust — up 37.28% since inception.


REIT
Sector
Blog date
 Price
 Closing price 07/27/12
Return to date %
Dividend yield %
PSA
Self storage
      90.75
                                           149.37
64.60
2.75







VTR
Health care
      52.87
                                             66.79
26.33
3.39
HCP
Health care

       36.81
                                                47.17
28.14
4.16
HCN
Health care

      47.53
                                             61.83
30.09
4.71







IAECREIN:CN
Canada
 19.45cn
25.85cn
32.91
0
ZRE:CN
Canada

 16.29cn
21.06cn
29.28
4.75
INVRLPRA:CN
Canada

 5.45cn
 5.51cn
1.17
1.89

NNN 
Retail
27.18
29.21
7.47
 5.31







Index return
since inception*




37.28

Avg 12-mo
return of REITs in portfolio*




23.44

Avg dividend yield of REITs in portfolio




3.37

12-mo return
S&P REIT index as of 06/30/12*




8.92

12-mo return S&P 500*




7.25

Source: Bloomberg
*Does not include dividends paid

If you have trouble seeing the chart, just in zoom in with your web browser.

Enjoy your weekend!

George

P.S. I’m on Twitter. Follow me at
http://twitter.com/efinancialwrite for frequent updates, personal insights and observations on how to have a healthy retirement.

If you don’t have a Twitter account, sign up today at http://www.twitter.com/signup and then click on the ‘Follow’ button from
http://twitter.com/efinancialwrite to receive updates on either your cell phone or Twitter page.

No comments:

Post a Comment