Balancing Legal & General PLC and Purchase Averaging Down Taubman Centers

Today I sold 280 out of the 650 shares Legal & General I owned. This is balance this position in my portfolio as the weight of this position got relatively big due to recent price increases.

I purchased my 650 shares Legal & General Plc at the end of August for a price of GBX 219,60. I now sold part of my position for GBX 318,50. This is an increase of 45%. GBP/EUR exchange rate resulted in another 9% profit.

When I started this position the yield of Legal & General Plc was 7,57%. Against the current stock price the yield is 5,83%. For me a reason to balance this position back to it’s original value.

By selling 280 shares my yearly estimated dividend income decreases by GBP 46,90 / €56,10.

With the proceeds from the sold Legal & General Plc shares I doubled my position in Taubman Centers by purchasing 35 shares at a price of $29,98.

Where I was very lucky in the timing of my Legal & General purchase, my timing of buying Taubman Centers was simply unlucky. End July I purchased 35 shares with an average purchase price of $40,78. Today i doubled my position against a 26,5% lower price.

As a result of doubling down the average purchase price of my position in Taubman of 70 shares declined from $40,78 to $35,38.

By adding 35 shares Taubman my yearly estimated dividend income based on the current dividend will increase by $94,50 / €84,82.

Sold 500 shares WPG: I can sleep again

In August I purchased 500 shares Washington Prime Group (WPG) as based on my models I considerred this REIT a distressed security with a too low price. I paid $3,51 per share. Based on the yearly dividend of $1 the yield on cost was 28,5%.

Based on the calculations I made I considerred it a possibility that the dividend would be cut partially, but that it would nevertheless still be a a high dividend.

After owning the stock for almost 4 months I notice that I still consider the calculations I made realistic, but nevertheless I’m closing this position. Although this position is around 1.5% of my portfolio, it’s often keeping my mind busy. Every article on SeekingAlpha with a critical approach on this stock is staying to long in my mind.

For this reason I sold the stock today against a price of $3,83. In the 3,5 months I had these stocks I made a profit of 24%. This is 10% as a result of stock price increases and 14% due to 2 dividend payments. This is a profit of €382,62 on an investment of €1.567,68.

As a result of this sale my yearly estimated dividend income will decrease by $500. A big hit on my expected income, but it seems like I put to much focus on a speculative position. With the proceeds I started a position in Delta Airlines.

Sold 11 shares Warehouses de Pauw

Recently I sold the 11 shares I own in Warehouses de Pauw (WDP). Warehouses de Pauw is a Belgium REIT which is investing in warehouses.

I sold the shares against a price of €163,20. WDP is owning a strong portfolio of warehouses and is having a good solvability, but I consider the stocks at the moment this much overpriced that I closed my position. The last net asset value which was published in june is €76,70 so also the big difference between the share price and the NAV is giving me an extra reason to sell.

As the current announced dividend is €5,20 (3,18% yield), my yearly estimated dividend income will decline by €57,20.

I’m adding WDP to my watchlist as I still believe this is a very high quality REIT, but I will only get back into this stock when the yield will be around 4,5%.

With the current announced dividend of €5,20 the stock will have to be priced around €115 to be considered a buy again by me. This is a decline of 30%

I purchased the stocks against an average price of €94,63 and sold them against a price of €163,20 so the investment in Warehouses de Pauw was a very profitable one. I made a profit of €861,61 including €109,98 in dividends received on an investment of €1.040,89.

So I’m selling one of the winners in my portfolio, but I feel like the valuation of this REIT is way to high at the moment.

With the proceeds from this sale I purchased Albemarle stocks. I will write make a post about this purchase later this week.

Sold 105 shares Monmouth Real Estate

Yesterday I sold all my 105 shares of Monmouth Real Estate. Monmouth is a nice stable company investing in warehouses, but they are also owning a portfolio of other REITs.

I’m selling this stock for a few reasons:

  • I’m reducing the share of Real Estate stocks in my portfolio
  • I don’t like that Monmouth is not only investing in warehouses, but is also having a big exposure to the stock market due to their 150 million stock portolio
  • Monmouth didn’t increase their dividend since November 2017
  • Monmouth keeps issuing new shares to add equity to purchase new buildings

I will keep Monmouth on my watchlist, because I recognize that they own quality properties which offer a stable cashflow. The current yearly dividend is $0,68 which results in a current yield of 4,39%. If the yield is getting in the range 5,5% – 6,0% I will consider getting back into this stock.

After closing this position I made an 8% profit or €114,32. Slightly more than 4% per year.

Tomorrow I will write about the new position I started with the proceeds from selling Monmouth.

Sold 58 shares Omega Healthcare Investors

This week I sold all my 58 shares Omega Healthcare Investors at a price of $38,26. As a result of this sale I reduce my yearly estimated dividend income by $136,56.

My average purchase price of the Omega Healthcare shares is $27,90 so I’m removing a 9,5% yield on cost position from my portfolio.

My return on investment in euro’s:

Purchase 58 shares-1.365,27
Sold 58 shares1.974,22
Dividend220,04
Profit828,99
Profit %60,7%
ROI per year31,9%

I decided to sell Omega Healthcare mainly because I don’t feel comfortable with the performance of the tenants of Omega Healthcare Investors. Tenants of Omega Healthcare are companies running skilled nursing facilities and many operators in this market are struggling to stay profitable.

A few times already Omega Healthcare Investors adjusted their contract with major tenants resulting in reduced rent income or taking over capital investments which normally were paid by the tenant.

As a result the payout ratio of Omega Healthcare is very high at the moment and as I see it realistic that some more rent discounts have to be given to struggling tenants I decided to close this position.

I will miss the steady dividends I enjoyed since 2017, but I’m not feeling comfortable by the performance of the tenants of Omega Healthcare Investors so I’m happy to close the position and realize the capital gain.

Sell 30 shares Wizz Air Holdings

This week I closed my position in Wizz Air Holdings and sold the 30 shares I own.

I purchased my shares Wizz Air Holdings in January 2017 at a price of 1.824 pence and I sold them this week at a price of 3.209 pence.

This is a return of 75,9% in 2 years and 4 months.

I sold the shares Wizz Air Holdings to reduce my exposure to the very cyclical Airlines sector. Wizz Air as ultra low cost carrier is operating a beautiful business model with really low prices, but based on the above average growth last years I decided to sell this stock.

Wizz Air Holdings is not paying any dividend so my yearly estimated dividend income is not influenced by this transaction. I will keep Wizz Air on my watchlist with a trigger to posibly pick up the shares again if the shares are below 2.500 pence.

Rebalancing my portfolio by selling a few small positions

Today I sold:

10 shares Macquarie Group LTD @ AUD 111,60
45 shares Ryanair @ €15,49
3 shares Stamps.com @ $248,05
3 shares Berkshire Hathaway @ $200,14

Basically these are 4 small positions in my portfolio. Nowadays I consider positions below €1.000 small. These small positions are a leftover from the year I started with investing in stocks on a monthly level. At this time I had the tendency to buy 2 or 3 different stocks a month to be able to diversify my portfolio.

The 4 stocks listed above are not in the first third of my watching list. So I don’t expect to increase the size of the positions in this year. Also I have problems keeping informed about Macquarie Group, because Australia is far away and I rarely have articles or reports to read about Macquarie Group.

Although I’m pleased with the peformance and dividend of Macquarie Group I still decided to sell this position, because I consider it important to have articles and analysis availble so I have other sources than the presenations published by this bank itself.

As a result of my experience with Macquarie Group I added a rule to my personal investing guidelines to also ask myself the question if enough publications from others sources than the company website are available so I keep myself challenged in making an assessment if I can find enough articles about a share I’m considering buying.

As a result of closing these small positions I will be making another stock purchase later this month.