Sudden Discount Creates A Huge 12% Yield

There are plenty of mediocre opportunities for a high yield. However, one stands out. This opportunity wasn’t available in the last several months. Shares plunged in January, dramatically underperforming their peers. However, the REIT is less exposed than many peers to the January challenges.

Sometimes bargains are more abundant than other times. We caught a bargain in the high-yielding mortgage REIT space. While January has been a harder month for BV in most mortgage REITs, this mortgage REIT had a plunging price instead of book value. Purchased 1,207 shares of Ready Capital (RC) at $13.5791 per share (weighted-average price). RC is one opportunity where the odds are tilted in favor of investors as the REIT should trade at a higher price-to-book ratio. As Q4 earnings roll out, Scott Kennedy will be providing frequent updates on The REIT Forum. I’ll update this series to include charts using Q3 2021 BV and Q4 2021 BV soon since there are several weeks between the first Q4 reports and the last Q4 reports.

Source: Seeking Alpha

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