TRADE ALERT - Core Portfolio June 2025 (Capital Recycling)

Today, we continue to recycle capital from our legacy winners with limited upside into new and exciting REITs that have more to offer.

We have decided to sell our position in VICI Properties (VICI).

We continue to like the REIT and think that it could enjoy a bit more upside from here, but it is approaching fair value, and its now massive size is likely to slow down its growth going forward.

Here is how it has performed relative to the broader REIT market since our initial investment (VNQ):

Data by YCharts

The goal of our Core Portfolio is to maximize total returns, and therefore, VICI is not a good fit anymore.

We sold our position and we are today redeploying all the proceeds, plus an additional $10,000, into Hannon Armstrong Sustainable Infrastructure (HASI), which used to be structured as a REIT, but recently decided to convert into a C-corp.

Below, we share our investment thesis for the company.

In short, the company owns essential renewable energy infrastructure that has a lot to gain from the AI revolution, as it will greatly increases the demand for electricity. It is today offering a 6.5% dividend yield, and the management has guided to grow its FFO per share by 8-10% annually in the coming years.

So, higher yield, faster growth, and greater upside potential than VICI. It is riskier, but it fits our Core Portfolio better, which aims to maximize total returns.

Investment Thesis