A portfolio of stocks I've been building since September 3 is named Volio Folio. It will eventually hold 52 dividend dogs. Volio is the fifth portfolio I've built (at a one dividend dog per-week pace) since 2014. Five portfolios = V for Volio!
Today I'm reviewing the forth of five real estate stocks striving to be picked to join the Volio folio. This could be the tenth pick for Volio!
That real estate sector includes nine industries all related to real property ownership. Like: general real estate; Real Estate Services; and seven varieties of real estate investment trusts, or REITs.
My subject today is a small-cap diversified real estate investment trust, Exantas Capital Corp. Their trading ticker symbol is XAN. This is my first live report on Exantas Capital Corp (XAN).
Exantas Capital Corp is a commercial real estate investment trust that focuses on real-estate-related assets and, to a lesser extent, commercial finance assets.
The company invests in commercial real-estate-related assets, including whole loans, A notes, B notes, mezzanine loans, and mortgage-related securities, as well as commercial finance assets, which include other asset-backed securities, senior secured corporate loans, equipment leases and notes, trust preferred securities, debt tranches of collateralized debt obligations, and private equity investments mainly issued by financial institutions.
The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes 100% of its REIT taxable income to its stockholders.
The company was formerly known as Resource Capital Corp. and changed its name to Exantas Capital Corp. in May 2018.
Exantas Capital Corp. was founded in 2005 and is based in New York, New York.
I use three key data points to gauge dividend-paying equities or funds like Exantas Capital Corp:
(1) Price
(2) Dividends
(3) Returns
Besides those three, several other keys will finally unlock an equity or fund in which to invest, or not.
Those three basic keys, however, best tell whether a company has made, is making, and will make money.
XAN Price
Exantas's price per share closed at $11.71 yesterday. A year ago its price was $11.10. In the past year, its price rose $0.61 or nearly 5.5%.
Assuming Exantas's stock trades in a range of $10 to $14 this next year, it's recent $11.71. price could rise by $0.79 and maybe get to $12.00 by early-November, 2020, assuming more upward price momentum continues.
XAN Dividends
Ladder's latest declared quarterly dividend was $0.25, paid October 25th.
That $0.25 Q dividend was raised from $0.225 in July and equates to $1.00 annually and yields 8.54% based on yesterday's $11.71 closing price.
XAN Gains?
Adding the $1.00 annual estimated dividend to my $0.79 estimate of Exantas Capital Corp's price upside shows a $1.79 potential gross gain, per share, which will be reduced by any costs to trade these shares.
Say we put a little under $1,000.00 today into Exantas Capital Corp at its recent $11.71 price, we'd buy 85 shares of XAN.
A $10 broker fee paid half at purchase and half at sale could cost us about $0.12 per share.
Subtract that $0.12 brokerage cost from the estimated $1.79 gross estimated gain per share leaves a net gain of $1.67 X 85 shares = $141.95 or a 14.2% net gain on a $995.35 investment.
Therefore, Exantas Capital Corp, whose trading ticker symbol is XAN shows a possible 14.2% net gain including an 8.54% dividend yield. It could be more, it could be less.
The above speculation is based on past year performance. The actual results remain to be seen to learn if Exantas Capital Corp is worth your time and money.
Comments
Log in or sign up to join the conversation.