U.S. Markets closed
  • S&P 500

    3,851.85
    +52.94 (+1.39%)
     
  • Dow 30

    31,188.38
    +257.86 (+0.83%)
     
  • Nasdaq

    13,457.25
    +260.07 (+1.97%)
     
  • Russell 2000

    2,159.06
    +7.92 (+0.37%)
     
  • Crude Oil

    53.28
    +0.30 (+0.57%)
     
  • Gold

    1,868.80
    +28.60 (+1.55%)
     
  • Silver

    25.90
    +0.58 (+2.27%)
     
  • EUR/USD

    1.2111
    -0.0022 (-0.1817%)
     
  • 10-Yr Bond

    1.0900
    -0.0020 (-0.18%)
     
  • Vix

    21.51
    -1.73 (-7.44%)
     
  • GBP/USD

    1.3656
    +0.0022 (+0.1598%)
     
  • USD/JPY

    103.5300
    -0.3620 (-0.3484%)
     
  • BTC-USD

    35,024.50
    +624.53 (+1.82%)
     
  • CMC Crypto 200

    694.20
    -6.41 (-0.91%)
     
  • FTSE 100

    6,740.39
    +27.44 (+0.41%)
     
  • Nikkei 225

    28,523.26
    -110.24 (-0.39%)
     

Scott Black Buys 3 REITs in 2nd Quarter

GuruFocus.com

Scott Black (Trades, Portfolio), chief investment officer of Delphi Management, disclosed this week that three of his new buys for the second quarter were Easterly Government Properties Inc. (NYSE:DEA), Granite Point Mortgage Trust Inc. (NYSE:GPMT) and Gladstone Commercial Corp. (NASDAQ:GOOD).

According to its website, Black's Boston-based firm pursues a conservative investment strategy that emphasizes the fundamental performance of underlying companies. As disciples of the Graham-Dodd school of value investing, Black and his research team seek long-term capital appreciation through investments in securities that have low absolute valuation. Additionally, Delphi contacts management at every company in which the firm invests.

9ff17c1c90ece43f0bdc97403bcc547e.png
9ff17c1c90ece43f0bdc97403bcc547e.png

As of quarter-end, Delphi's $111 million equity portfolio contains 93 stocks, of which nine are new positions. The top three sectors in terms of weight are consumer cyclical, financial services and technology, with weights of 21.22%, 20.63% and 17.84%.

d5a976b41be69da52f22dddfb759936d.png
d5a976b41be69da52f22dddfb759936d.png

Easterly Government Properties

Black purchased 28,346 shares of Easterly Government Properties, giving the position 0.46% equity portfolio weight. Shares averaged $18.22 during the quarter.

1b9a0c5670f77ff74970562cf1d49921.png
1b9a0c5670f77ff74970562cf1d49921.png

The Washington D.C.-based real estate investment trust acquires, develops and leases commercial properties in the U.S. to government agencies. GuruFocus ranks Easterly's financial strength 3.8 out of 10 on several weak signs, which include a low Altman Z-score of 1.01 and a cash-to-debt ratio that underperforms 82.49% of global competitors. Despite this, Easterly's debt-to-equity ratio underperforms just 50.41% of global REITs.

2070791214.png
2070791214.png

Granite Point Mortgage Trust

Black purchased 23,445 shares of Granite Point Mortgage Trust, giving the holding 0.40% equity portfolio weight. Shares averaged $19.04 during the quarter.

25125bfd81b57acccb08d8db619234f1.png
25125bfd81b57acccb08d8db619234f1.png

The New York-based REIT focuses primarily on directly originating, investing in and managing senior floating-rate commercial mortgage loans and other debt-like commercial real estate investments. According to GuruFocus data, Granite Point's debt-to-equity and equity-to-asset ratios underperform over 82% of global competitors, suggesting poor financial strength.

1695226248.png
1695226248.png

Gladstone

Black purchased 19,948 shares of Gladstone, giving the position 0.38% equity portfolio weight. Shares averaged $21.24 during the quarter.

94bf21372c1cd6b4623e46faa8341872.png
94bf21372c1cd6b4623e46faa8341872.png

The McLean, Virginia-based REIT invests in and owns net leased industrial, commercial and retail real property. Additionally, Gladstone makes long-term industrial and commercial mortgage loans.

See also

Black also established new positions in Chevron Corp. (NYSE:CVX), M&T Bank Corp. (NYSE:MTB), General Dynamics Corp. (NYSE:GD) and Eaton Corp. PLC (NYSE:ETN).

Disclosure: No positions.

Read more here:

  • Jeff Auxier's Top 4 Buys in the 2nd Quarter

  • Julian Robertson Buys 3 Stocks in 2nd Quarter

  • Andreas Halvorsen's Top 5 Buys of the 2nd Quarter



Not a Premium Member of GuruFocus? Sign up for a free 7-day trial here.

This article first appeared on GuruFocus.