December 1, 2017
Here is a positive article (link below) on LADR which is a position in the Core Portfolio.
LADR pays over 9% and is now priced BELOW where we purchased. Current owners can buy more. Or if you do NOT own, you have two options: buy now and get the dividend on Dec 8 or wait until after the ex-dividend date and POSSIBLY get a lower entry price.
This is a BUY. Here is some copy from the article linked below:
One of the main fears of REIT investors is the potential impact that interest rate increases could have on the value of their investments. We believe many of these fears to be misplaced as history shows that most REITs perform well during periods of rising interest rates, especially when rising interest rates are the result of economic expansion. This is especially true in the case of LADR which is uniquely positioned to benefit as interest rate increases.
The loans that LADR invests in are typically 1 to 3 years and are floating-rate loans which generate more income with rising interest rates. Moreover, Ladder pre-dominantly finances these investments with fixed rate debt, and therefore, its spread tends to just get larger in an increasing interest rate environment.