Case Study: Diversified REIT Portfolio Delivers Strong Returns for Dubai-based IT Specialist

Mr. Pollonen was a typical IT-specialist, who relocated to UAE in 2019 and asked for advices to invest his own USD 500k in real estate. He wanted to buy an apartment in Dubai and searched for alternative embodiments to invest. His expectations were as follow: ROE – about 7 % per year plus capital growth about 7-8 % per year. He wanted also to feel safety in his investment and have less than average drawdown in this sector.

We offered for Mr. Pollonen a solution with a diversified portfolio of REIT stocks operating inside a US property sector. Companies in his portfolio were equally weighted by market cap and price volatility. He got in total: Getty Realty Corp (5 % ticker GTY), Vici Properties Inc. (24 % ticker VICI), Iron Mountain Inc. (14 % ticker IRM), Agree Realty Corp. (9 % ticker ADC), Service Properties Trust (5 % ticker SVC), CareTrust Reit Inc. (6 % ticker CTRE), LTC Properties Inc. (5 % ticker LTC). A cumulative amount of investments was 68 % and a cash part was 32 %, which could be useful to raise some positions after better than expected earnings. ?

Afterwards Mr. Pollonen got fully diversified portfolio of property operated by his companies. From California to New York he had partial profits of apartments and warehouses for private and corporate demands. Average yearly growth of chosen companies was more than 10 % and the total growth of his investments was 12 % including 3 % growth for a cash part. Moreover, range of dividend yields of these companies varied from 3.9% to 7.7 % and average dividend yield of his portfolio was 4.35 % of additional cash flow. At the end of 2022 his portfolio valuation was USD 715k of fully reinvested funds.?

In conclusion, Mr. Pollonen's experience highlights the importance of diversification and seeking professional advice when it comes to investing in real estate. By opting for a diversified portfolio of REIT stocks operating in the US property sector, Mr. Pollonen was able to achieve his desired return on equity and capital growth while minimizing his risk exposure.

With a carefully selected mix of equally weighted companies, Mr. Pollonen was able to achieve an impressive 12 % total growth on his investments, with a 4.35 % average dividend yield providing an additional source of cash flow.

This case study demonstrates the potential of REIT stocks as a viable alternative for those seeking to invest in real estate without the risks and headaches of traditional property ownership. By working with a professional investment advisor and exploring a range of options, investors like Mr. Pollonen can achieve their financial goals and secure a brighter financial future.