As the valuation of some mREIT normalised, I am closing my position in most of the mREIT I owned.
Some of them are still undervalued like : CIM, NRZ, TRMT. I still own them or switching them from NYMT to these. Closing majority of my common or preferred position in NYMT, MITT, DX, BXMT.
Since small and mid companies are getting bail out from gov, and potentially more assistance to hospitality industry, I am hunting for all assets types for small lenders to mid-size companies and preferred shares or note in hospitality and retail properties.
For small lenders, I want low energy sector exposure, majority of their loans are first-lien and have excess revolver capacity. Anything from common to subordinated note will be considered for this sector.
For hospitality, operating a known brand of hotels, doesn't have issues in indebtedness pre-crisis.
For retail, Diverse portfolio, preferably non-premium malls. If they are pricing like trash, GREAT!
Potential target : A lot, some of them include OXLC, AINV, OCSL for lenders; INN, APLE, BHR for hospitality; PEI, SPG for malls.
Comments