Friday File part one — Real Money Portfolio updates

Some buys and sells, including DOC, VTR and CRTO

Today I’ve got a couple notes to share with you — this first one is an update on several holdings in my portfolio, and after the market close this evening I’ll be sending you a more in-depth look at the gold-related positions in my portfolio, along with a new stock I’ve added to the portfolio in that sector.

So… what’s up with the positions in my Real Money Portfolio since I last wrote to you? I’ve got one sale to note this week, two partial profit-taking transactions, and a couple updates on stocks of interest.

First, the sell — this week I sold all my shares of Physicians Realty Trust (DOC), a medical office building REIT that I’ve held for almost two years with a total gain of 48%. This is a “growth REIT” and I bought it as such as it was building up its portfolio pretty aggressively, and they’ve done that, but I don’t see much indication of their ability to become a real dividend growth REIT… this is what I noted a month ago:

“Physicians Realty (DOC) also released earnings this week, that’s a growth REIT which is trying to build up its portfolio. As I mentioned back in January, I think we’re going to have to see FFO grow fast enough to generate the possibility of dividend growth to see the shares trade meaningfully above $20 for very long, and the lack of dividend growth also means they’ll probably be more sensitive to interest rate sentiment changes. They’re still growing the portfolio, but they’re not really growing revenue or funds from operations very quickly — they do have high quality assets, but those assets are also already leased up pretty tightly (occupancy is around 97%), so there’s not a huge inflection point where one would expect their revenue to really increase aside from the purchases of new properties they’re making (which will most likely require roughly 50/50 equity/debt financing, on average). I’ve been letting this one sit for a couple years because they’re building a good portfolio of medical office buildings, which should be valuable and relatively safe from regulatory risk (though if doctors lose money, of course, they have trouble paying rent), but I’m not interested in adding to this one right now given their lack of real dividend coverage (they can just barely cover the 22.5 cent dividend with their 24 cents of FFO, ...

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