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 45 shares of Pebblebrook Hotel Trust to my portfolio, at $30.07 per share.
Pebblebrook Hotel Trust is a REIT that owns luxury hotels in the United States, mainly in large cities accross the country. Their portfolio includes hotels like the Sir Francis Drake hotel in San Francisco, and the Dumont hotel in New York.
It is the first hospitality-type REIT that I am adding to my portfolio, and I have to admit I was a bit reluctant to add such a position in my portfolio with platforms like AirBnB taking more and more market shares to hotels. However, the company mainly invests in luxury hotels, which is a sector that’s still going strong at the moment.
The current valuation of the stock is at $30.07 with a P/E ratio around 17.57 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 quarterly, is at $0.38. This makes the stock yield at 5.13%. 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 solid dividend history, with an excellent 5 years dividend growth of 25.93%, which actually exceptional for a REIT. They also have a payout ratio of 88.89%, which is in line with the payout ratio of other REITs.
This purchase will add $68 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!