TRADE ALERT - Core Portfolio April 2026
Another Big Win For Us, Our 12th REIT Buyout
At High Yield Landlord, our investment strategy is built on buying real estate at a steep discount to fair value through the often mispriced public REIT market.
The goal is simple.
We aim to earn an abnormally high yield while we wait, and then profit further as the discount to fair value gradually closes.
Because of this, it is also quite common for us to benefit from buyouts. When public REITs trade at steep discounts to the value of their underlying real estate, it often attracts larger investment firms that see an opportunity to acquire the entire company at a premium, and still get a good deal.
Over the years, we have now profited from 11 such buyouts.
This includes:
Frontyard Residential
MNR Real Estate
Urstadt Biddle
Hersha Hospitality
STORE Capital
American Campus Communities
PS Business Parks
Tricon Residential
Apartment Income REIT
National Storage REIT
Whitestone REIT
And now, we have another one.
Sila Realty Trust (SILA) has agreed to be acquired by Blue Owl Capital (OWL) in a $2.4 billion transaction at a 25.6% premium to its 30 day volume weighted average price.
This is a big win for us because Sila was the second largest holding in our Core Portfolio, representing 7.3% of it.
We first invested in the company in August 2024 after selling Global Medical REIT, now known as Chiron Real Estate (XRN), and in hindisght, that was a very good decision:
This also marks the third REIT buyout from our portfolio in just over one month.
First, our Australian Top Pick, National Storage REIT (NSA), got bought out by Brookfield (BAM). Then, Whitestone REIT (WSR) got bought by Ares (ARES). And now, Sila is getting bought by Blue Owl.
So what do all of these investments have in common?
They all traded at steep discounts to net asset value, and that eventually caught the attention of major private equity firms that were willing to pay large premiums to acquire them, while still believing that they were buying at attractive valuations.
This is exactly why we remain so bullish on the REIT market today.
It continues to offer patient long-term investors the opportunity to buy high quality real estate at deeply discounted prices. In many cases, we are quite literally buying dollars for 50 cents.
And I think there is a high likelihood that we will see many more similar transactions in the coming months because we currently own a number of positions that could also become buyout targets.
Just looking at our current Core Portfolio:
