Tuesday, 20 January 2015

Recent Buy! January 2015

     Considering my much higher than normal expenses in December, I am very happy to say I was able to make a purchase this month. So I deployed my cash by adding to my position in Dream Office REIT (D.UN) with another 24 shares, making my total share count at 85. Dream is now back to being my largest single position in my portfolio, with a weighting on 18% and bringing my REIT weighting to 24% which is a bit higher than I am aiming for, so in the future unless an amazing opportunity to buy more of Dream or RioCan comes up I will not be buying more of them for the next while.

    I did however buy them for the reasons outlined in my last Watchlist post, to recap; Dream managed to renew 60% of its expired leases, has an occupancy of 91% which is above the sector average of 89.7%. With recently lowered stock prices Dream has been buying back its shares for cancellation. If you are interested in Dream, here is a link to their Q3 2014 results posted on November 13th. I am also quite happy with the additional income Dream will be bringing to me every month to help fuel additional purchases. I would like to eventually build a large enough position to start a D.R.I.P of this stock, turning monthly distributions into a new share every month.

    This purchase brings my total cost of Dream down to $28.16 from its previous average cost of $28.67, since I purchased the shares on Friday for $26.87. Going forward these new shares bring me an additional $4.49 in distributions every month, for an annual total of $53.86, at a yield of 8.37%! Added with my previous shares, Dream will now be paying out a nice $15.87 every month; that almost covers my phone bill!

   Also got to say, in part adding to Dream instead of Bank of Nova Scotia or Toronto Dominion is in part to seeing how powerful REIT's income can be every month to help fuel additional buys, from my own bringing in about $15 a month, now almost $20, to Asset Grinders super charged portfolio!

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