Purchase 200 shares Washington Prime Group

Today I bought 200 shares of Washington Prime Group at a price of $6,21 per share. It’s a more speculative purchase.

Washington Prime Group is a REIT which invests in shopping centers and is a spinoff from Simon Property Group. Washington Prime Group is disfavored in the market at the moment due to amazon fears. Washington Prime Group is aggressively working on the traffic in the malls they own by converting them to local dominant shopping centers by attracting entertainment and foot tenants. They try to increase the traffic by offering a combined shopping and leisure experience.

Washington Prime Group has a dividend of $1,00 per share per year at the moment. This results in a dividend yield of 16,1%. This insane yield is a clear warning sign that the market is expecting a dividend cut. I picked up a few shares as a speculative investment. Washington Prime Group is after reaching a 52 weeks high $9,58 in July down 35% to $6,21.

For me it feels like the market did overreact to this REIT, but I know that in investing feeling is not always the best advisor. Nevertheless I added 200 shares to my portfolio which at the current quarterly dividend of $0,25 brings in an estimated yearly dividend income of $200.

Dividend report February 2018

In February I received €86,53 in dividends:

AbbVie €8,51
Apple €5,03
EPR Properties €8,63
Iberdrola €12,08
Omega Healthcare €27,95
Royal Bank of Canada €5,85
Simon Property Group €12,79
Verizon €5,68

Targets:
I’m at €300 out of €5.000 extra mortgage repayment above the regular repayment (6,0%)
I’m at €4.200 out of €18.000 deposits in my stock account (23,3%)
I’m at €128,96 out of €2.200 dividend received (5,9%)

Transactions:
Buy 8 Unibail-Rodamco
Buy 21 Macquarie Infrastructure Company
Buy 35 Wereldhave
Sell 11 Think Global Real Estate UCITS ETF
Sell 15 Think Morningstar High Dividend UCITS ETF
Buy 10 Unilever
Sell 30 Elior
Buy 3 l’Oreal
Sell 20 iShares MSCI Emerging Markets UCITS ETF
Buy 10 Royal Bank of Canada

I have a bit too many positions in my portfolio which are relatively small, because when I started investing I often bought 2 or 3 different companies a month to spread my money. This month I closed some relatively small positions and invested the money back in some medium sized positions.

Purchase 35 shares Wereldhave

At the begin of February Wereldhave announced a dividend reduction to fund internal projects. The dividend was reduced from €3,08 to €2,52. A reduction of 19%. As a result of the dividend cut the share price went down from €40 to €30. A correction of 25%. At a price of €30 the expected dividendyield is 8,4%.

Today I decided to buy 35 shares Wereldhave at a price of €30,73. The expected yield on cost of these shares will be 8,2%. With this purchase I add €88,20 in yearly expected dividend income to my portfolio.

Purchase of 8 shares Unibail-Rodamco

Today I bought 8 shares Unibail-Rodamco at a price of €187,00. The shares have a dividend outlook for 2018 of €10,80 so the estimated yield on cost will be 5,77%. Last few weeks the share price of Unibail-Rodamco decreased from €224 on 6 december to €187 today. A decrease of 17% due to ricing interest rates and market selloffs in the REIT market.

The current share price offering an estimated yield on cost of almost 6% is for me reason to add this big REIT to my portfolio.

Unibail-Rodamco is in the process of acquiring Westfield Corporation. The offer on Westfield is a combination of cash and Unibail-Rodamco shares. Due to the decrease in the Unibail-Rodamco share price there is a risk that Westfield shareholders will try to negotiate another deal.

With this purchase the estimated yearly dividend increased by €86,40.

Dividend Increase Q4, Dividend decrease outlook 2018 + purchase 21 shares Macquarie Infrastructure Company

Today Macquarie Infrastructure Company announced that the Q4 dividend will be increased from $1,42 to $1,44. Macquarie Infrastructure Company also announced the dividend outlook for 2018 will be decreased to $1,00 per quarter.

The explanation for the dividend cut:
“In addition, we have made the decision to reduce our 2018 dividend in favor of internally funding the repurposing of the assets at International-Matex Tank Terminals and to take advantage of the incentives to invest in growth projects that are a part of recent tax reform,” Frost added. “We believe that our guidance for a dividend of $1.00 per share, per quarter, in 2018 strikes a balance between continuing to return the majority of our Free Cash Flow to shareholders in the form of a dividend and strengthening our balance sheet in support of future dividend growth.”

Due to the dividend cut the share price of Macquarie Infrastructure Company is down almost 40%. I decided to double my position in Macquarie Infrastructure Company from 21 to 42 shares and bought 21 additional shares against a price of $39,51. Based on a quarterly dividend of $1,00 the shares have a yield on cost of 10,1%. For speculative reasons I increased my number of shares.

The dividend reduction from $1,44 to $1 per quarter is resulting in a decrease in estimated yearly dividend income of $36,96
The purchase of 21 shares is resulting in an incrase in estimated yearly dividend income of $84.

I do consider this purchase speculative. Although Macquarie Infrastructure Company is saying the want to use the cashflow to fund projects which should normally result in additional cashflow in the future, I’m not sure this is the only reason, becausee altough interest rates are rising, they are still low compared to historic rates.

I personally buy sometimes extra shares at the moment the price is going down a lot speculating on an overreaction in the market. Only the future will learn me if this was a good or wrong bet.

With this purchase my average purchase price decreased from $69,61 to $54,56. Estimated yield on cost will be 7,33%.