Thursday, January 28, 2016

Sold Realty Income, Bought W.P. Carey REIT

I swapped out a high-quality REIT trading at all time highs for another high-quality REIT trading near its lows. Hopefully it works out, although the difference in dividend yield alone could make this trade worthwhile. I sold all my Realty Income (NYSE:O) shares for an IRA that I manage. Fact is, it was just getting too expensive and I was getting nervous holding onto it. I've made a good bit of money on Realty Income, and I'd like to call it quits while I'm ahead. I love that business, and I'll be happy to consider buying more when it is cheaper.

I used the proceeds to buy W.P. Carey (NYSE: WPC). Frankly I think this one is of comparable quality to Realty Income, but it's way down there and it yields 6.7% right now. I like the company's portfolio of "mission critical" buildings, and the fact that occupancy has never dropped below 96%. This really is my kind of REIT. Glad to have it, but ultimately time will tell. 

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