I am considering reallocating my portfolio from growth to yield. Prelimary research on ARCP looks like exactly what I am looking for. One question. What happens to this stock in a rising interest rate environment? Will it trade like a bond and lose value proportionately with interest rate rise?
Welcome. I bought ARCT @ 10.00 got out @ 12.48 & bought ARCT III 10.00. The management team has given me 2 nice paydays in less than 19 months. I am holding my shares in ARCP & will put new $ up for ARCT IV.
Like you I profited from ARCT, equalled the SP500 over my time period. Sold and bought ARCIII just 7 months ago. I would like to hold ARCP and buy ARCIV, but my clients would be overexposed to retail real estate. So, I waited for the dust to settle monday and tuesday, sold Wednesday at $12.87 and am moving monies to ARCIV. I have heard that IV may sell out by April 15th, so I didnt want to wait. I also heard IV could go full cycle within the next 12 months. I earned my clients 34% in 7 months on III (after my commissions) versus SP which gained 14% over the same time period. I hope to earn well on IV also.
No, it will not behave like a bond. However of course the current price is a reflection of the high yield in comparison to other investments. Be aware if your new, that this firm is currently engaged in some acquistions and currently has very unusually attention (volume). Visit the company website and become familar with the company REIT offerings and their history. GLTY.