The Buyout of Dream Global REIT
If you're a shareholder of Dream Global REIT (DRG.UN.TO), you're probably know by now that the company will be acquired in December 2019. Last week, the company received a buyout offer, consequently I decided to sell my shares today and reinvest in other solid companies.
I've been a shareholder of DRG since early 2016. DRG is a pure European play. This was my only exposure to European real estate. I really liked their properties. I had 225 shares at an average cost of $9.05 per share. I sold all shares today for $16.57 and locked in $1,692 of capital gain. I also received over $500 in dividends for holding the stock for three years. Overall, my total return was around 100% thanks to the acquisition. Although, it's a great return, it's still sucks to see it go. It's the second REIT from my portfolio being bought this year. If you recall, a few months ago, Pure Multi-Family REIT was in a buyout deal as well.
Anyway, after selling DRG stock, collecting dividends, and depositing my monthly contribution; I had around $4,600 for new investment opportunities. I hate to hold cash, so I put it to work right away. I decided to split the money in half and invest in two new companies. Initially, I wanted to invest in Inovalis REIT. It's a smaller rival of DRG. They own office buildings in France and Germany. However, after doing some research in their properties and taking a closer look at their balance sheet, I decided not to touch that stock. I'm not sure about their future financial health. So I invested in Canadian stocks instead. The stocks I never owned before and I hope they won't disappoint.
Northland Power
The first company I bought is Northland Power (NPI.TO). I bought 100 shares at $24.40 per share. NPI is in renewable energy business. They currently generate 2,429MW of electricity using wind, natural gas, biomass, and solar technology. I have no idea how much is that. What I do know is that they have an additional 399MW of generating capacity under construction and 1,044MW in advanced development. That sounds like a significant long-term growth potential. And as a shareholder, I will be rewarded with 4.95% dividend yield just for holding the stock in my portfolio.
Genworth MI Canada
The second company I bought is Genworth MI Canada (MIC.TO). I bought 40 shares at $52.30 per share. MIC is the largest private residential mortgage insurer in Canada. If you ever bought a property in Canada with a minimum down-payment, you had to get a default mortgage insurance. This is where Genworth comes in play. A mortgage insurance is mandatory if your down-payment is under 20%. And with soaring real estate prices in Canada, who has 20% cash to put on a property? Most people don't, especially fist time home buyers. That's why Genworth gets so much business. The company offers a 3.9% dividend yield and they just announced a special dividend of $1.45 per share, but you must be a shareholder by September 26. It's also worth mentioning, that Brookfield Business Partners acquired a controlling stake (57%) of Genworth MI Canada for C$2.4 billion.
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That's it for today, guys. Let me know what you think of today's trade. Do you own any these companies?
If you're a shareholder of Dream Global REIT (DRG.UN.TO), you're probably know by now that the company will be acquired in December 2019. Last week, the company received a buyout offer, consequently I decided to sell my shares today and reinvest in other solid companies.
I've been a shareholder of DRG since early 2016. DRG is a pure European play. This was my only exposure to European real estate. I really liked their properties. I had 225 shares at an average cost of $9.05 per share. I sold all shares today for $16.57 and locked in $1,692 of capital gain. I also received over $500 in dividends for holding the stock for three years. Overall, my total return was around 100% thanks to the acquisition. Although, it's a great return, it's still sucks to see it go. It's the second REIT from my portfolio being bought this year. If you recall, a few months ago, Pure Multi-Family REIT was in a buyout deal as well.
Anyway, after selling DRG stock, collecting dividends, and depositing my monthly contribution; I had around $4,600 for new investment opportunities. I hate to hold cash, so I put it to work right away. I decided to split the money in half and invest in two new companies. Initially, I wanted to invest in Inovalis REIT. It's a smaller rival of DRG. They own office buildings in France and Germany. However, after doing some research in their properties and taking a closer look at their balance sheet, I decided not to touch that stock. I'm not sure about their future financial health. So I invested in Canadian stocks instead. The stocks I never owned before and I hope they won't disappoint.
Northland Power
The first company I bought is Northland Power (NPI.TO). I bought 100 shares at $24.40 per share. NPI is in renewable energy business. They currently generate 2,429MW of electricity using wind, natural gas, biomass, and solar technology. I have no idea how much is that. What I do know is that they have an additional 399MW of generating capacity under construction and 1,044MW in advanced development. That sounds like a significant long-term growth potential. And as a shareholder, I will be rewarded with 4.95% dividend yield just for holding the stock in my portfolio. Genworth MI Canada
The second company I bought is Genworth MI Canada (MIC.TO). I bought 40 shares at $52.30 per share. MIC is the largest private residential mortgage insurer in Canada. If you ever bought a property in Canada with a minimum down-payment, you had to get a default mortgage insurance. This is where Genworth comes in play. A mortgage insurance is mandatory if your down-payment is under 20%. And with soaring real estate prices in Canada, who has 20% cash to put on a property? Most people don't, especially fist time home buyers. That's why Genworth gets so much business. The company offers a 3.9% dividend yield and they just announced a special dividend of $1.45 per share, but you must be a shareholder by September 26. It's also worth mentioning, that Brookfield Business Partners acquired a controlling stake (57%) of Genworth MI Canada for C$2.4 billion. -----
That's it for today, guys. Let me know what you think of today's trade. Do you own any these companies?
A couple of nice buys here German. Admittedly I don't know much about them, I will have to research them further. That's a nice profit you got from Dream Global.
ReplyDeleteThanks, mate!
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