The most important and also the most exciting part of building a solid digital property portfolio is to consistently add pieces of property or REITs (Real Estate Investment Trust) to the portfolio, or to reinforce my positions in existing REITs.
Every time I am adding a new position in my property portfolio, I am posting this short report. Inside this report, you will find what I actually bought, an overview of the financials of the investment, and finally what this new purchase added to my annual investment income.
These reports are here to show you how I reason before making an investment, but also to give you the motivation to do the same and start building your digital empire.
Today, I added 105 shares of Castellum to my portfolio, at 12.00 € per share.
Castellum is a REIT based in Sweden that mainly owns commercial real estate like shopping malls and office buildings. They have about 7.4 billion Euros of real estate in their portfolio, making them one of the biggest real estate investment trust in the country.
It is the first REIT that I will own in Sweden, and the fourth one in Europe. As we will see in the rest of this report, it is not the best REIT I could buy at the moment but one of the best available in Europe, where I really want to expand my portfolio to reduce my exposure to the US real estate market.
The current valuation of the stock is at 12 € with a P/E ratio around 6.01 according to several estimates. This is perfectly in line with what I usually pay for a stock (I like P/E ratios below 20).
The current dividend, which is distributed annually, is at 0.49 €. This makes the stock yield at 4.11%. I like to buy REITs that have a yield around 5%, so I was satisfied with the yield of my purchase.
The stock also has a good dividend history, with a 5 years dividend growth of 5.78%, which is average for a REIT. As I said earlier, I really want to add more European REITs to my portfolio, so I was fine with this moderate dividend growth growth. They also have a payout ratio of 24.61%, which is in line with the payout ratio of other REITs.
This purchase will add 51.45 € to my yearly investment income, based on the current dividend distribution. Thanks for reading this purchase report, and if you have any comment please leave it below!