I just finished the May edition of the Forbes Real Estate Investor (publishing tomorrow) and the Small Cap REIT portfolio outperformed all of my other REIT portfolios. Although I’m hoping to repeat the same performance as last year (the Small Cap REIT portfolio returned 22%), I know I will need to make up a lot of lost ground.
Many of my best picks in the first quarter were Lodging REITs.
For example, Ryman Hospitality (RHP) shares jumped 16.7% year to date (see my article HERE) and Braemar Hotels & Resorts (NYSE:BHR) – formerly Ashford Hospitality Prime – is up 10.2% (see my article HERE). I am constantly seeking REITs that have the best upside, and I have been pleased with these choice picks (RHP and BHR).
I think that part of the reason for my success in selecting small cap REITs is the fact that I uncover so many stones. As you know, there are over 150 U.S. equity REITs to select from and that means that I must spend days and nights studying balance sheets, income statements, earnings transcripts, and conducting senior management interviews.
