Updates On Our European Top Picks (Incl. Trade Alert)

Something unique about High Yield Landlord is that we don't cover just US REITs, but we also cover foreign markets.

Today, over 30 countries have adopted the REIT regime, providing a lot of opportunities for us to evaluate:

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Our International Portfolio is optional and intended for investors who want greater diversification to boost risk-adjusted returns.

Personally, I aim to invest at least 25% of my REIT portfolio in non-US markets. Some members may prefer to allocate a higher weight to international opportunities, while others may ignore them altogether. It comes down to your personal preferences, risk tolerance, and return objectives.

The goal here is to provide you with the information and tools needed so that you aren’t just limited to US markets. It will allow you to identify and research new investment opportunities in Canada, Europe, South America, Asia, and even Africa from the comfort of your home.

The Portfolio currently holds 19 positions, out of which 9 invest in Europe, 6 in Canada, 2 in Central/Latin America, 1 in the Pacific, and 1 in Africa.

In today's article, we give updates on our 9 European Top Picks:

Vonovia (OTCPK:VONOY / VNA)

Last year, I met the company's CFO and other members of its management team in Berlin and got to take part in a property tour.

The main takeaway back then was that the company expected its NAV per share to stabilize and even return to growth, given the steady rent hikes that they were enjoying.

This has proven correct.

The company's NAV has stabilized and is up 2.3% year-to-date, and its rent growth remains strong at 4.3%.

Therefore, the thesis that we laid out following our management meeting is as strong as ever, and I invite you to read it once again by clicking here.

Its share price has already risen quite a bit, but even now, it still trades at a 35% discount to a NAV that's rising. Historically, the company has commonly traded at a 10% premium to its NAV on average, and as it returns to that level, it has the potential to unlock 50% upside. While you wait, you earn a 4.1% dividend yield.

Even ignoring the upside from multiple expansion, the company is now offering great potential for high economic returns from its yield and growth alone:

Interest rates could also drop faster than most expect in Europe, especially if this trade war carries on, and pushes the global economy into a recession.

This would only result in faster growth and higher upside. The performance of its properties is perfectly resilient to a recession because of how this sector is regulated in Germany. Occupancy rates are sky high at 98%, and rents kept growing even through the great financial crisis.

You can read our investment thesis by clicking here.

Branicks (DIC / DDCCF)