If you have been reading this blog, you know that I have invested in Granite Mortgage Property Trust (GPMT) and America First Multifamily Investors LP (ATAX). These are both REITs that have massive gains since my purchase last year. I bought ATAX very close to the bottom at $3.60 so there is almost a 100% return from purchase. GPMT was purchased as low as $5 which means the return has already went over 100%. GPMT is close to $15 which I expect should hit this year which would give a 200% return. These are phenomenal returns that would only come from “black swan” events.
Many people though that these REITs would fall further at these levels. If you calculated the NAV and listened to the quarterly calls, you knew that these REITs were close to the bottom. The market gave you some extra chances to buy since there were announcements of stimulus aid but the stocks still fell further.
I still believe there is at least 20% upside on both GPMT and ATAX as the stock price catches up to the NAV.
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