Panning For Gold: The Sustainable Infrastructure REIT
- I decided to launch a series called “Panning For Gold”, in which I will explore the specialty categories.
- If it looks like a duck, walks like a duck and quacks like a duck.
- By carefully analyzing the business model and the closest peers, an investor can begin to recognize the importance of predictable income and a wide margin of safety.
Yesterday, I commenced a series titled “Panning For Gold” in which I explained that “the increased demand of capital flowing into the REIT sector has prompted a growing mandate for REIT research”. I added that part of my job, as a REIT analyst, is “to become intimately familiar with the niche-based sectors like prisons, timber, casinos, infrastructure, and cyber-security”.
Many of these lesser-known property sub-sectors are appealing, and investors can enhance portfolio returns by screening for these uncovered gems. And for that reason, I decided to launch a series called “Panning For Gold“, in which I will explore the specialty categories in an effort to deliver precisely what this website wants: Alpha!
Yesterday, I wrote on the specialty Lodging REIT, Ryman Hospitality (RHP), in which I concluded that shares aren’t cheap (anymore), forcing me to cool the jets and hit the HOLD/TRIM button. I explained,
“I would wait on a pullback. As my subscribers know, we initiated a Hold, and this means there’s not much glitter with my first “panning for gold” article, but I’ll certainly keep digging…”
I’m now panning for gold in a different property sector, and this time it appears that the prospects are promising. Instead of Lodging though, I’m now digging deep inside the Infrastructure arena, but the lines are also a bit blurred, as it seems I am also encroaching on the commercial mortgage and net lease sectors.
As you know, the best deals are found in the less obvious places, and while mainstream investors are screening for stocks that everyone can own, I am busy mining for gems that are often overlooked and/or easily misunderstood. Get your shovel ready and let’s start digging…