B’s recent post on CDL reminded me that I have CDL H Trust in my portfolio!
I bought CDLHT back in Dec 2015, when it was trading at $1.28 against it’s book value of $1.593. It was at a discount to NAV of a whooping 20%, along with spitting out dividends of 7.2%.
If memory serves me well, back then the sentiment for all hospitality REITs were that they were crap. Nobody wanted them and suddenly everyone knew what is RevPAR and how it is dropping and it means doom and gloom for the tourism industry. I happily picked up said crap and just chugged along, collecting dividends on the way.
Last night CDLHT was trading at $1.68, but after the news which B wrote about, price dropped and I decided to sell at $1.63. That’s still a nice solid $0.35 capital gains there …