TRADE ALERT - Core Portfolio July 2025

Dear Landlords,

I want to extend a warm welcome to all our new members!

As a reminder, our most recent "Portfolio Review" was shared with the members of High Yield Landlord on July 7th, 2025. You can read it by clicking here.

You can also access our three portfolios on Google Sheets:

New members can start researching positions marked as Strong Buy and Buy while considering the corresponding risk ratings.

============================

TRADE ALERT - Core Portfolio July 2025

Recently, I was going through the recent insider transactions of all of our holdings, looking for REITs with significant insider purchases.

The REIT that stood out the most is Armada Hoffler Properties (AHH).

Over the past year, this small REIT has had over $4 million in insider purchases, including $1 million from its founder Daniel Hoffler, another $1 million from its former CEO, $1 million from a former director, and additional smaller purchases by other board members:

That's an especially strong vote of confidence, considering that most of these purchases happened at 30-40% higher levels than today's share price, meaning that the insiders, who know the company best, thought that the stock was cheap already after dropping to $10-11 per share.

Yet, today, it is just $7:

Data by YCharts

This prices the company at just 6.8x its normalized FFO, and an estimated 50% discount to its net asset value, according to the latest average estimate of analysts.

That is the lowest valuation ever for the company. It is just as low as following the pandemic crash of 2020:

Typically, REITs trading at such low valuations own poor assets, are dangerously overleveraged, and/or poorly managed.

But it is not the case here.