*** Warning *** Stoogy old man stock ALERT! *** I've owned this REIT since late 2013 when it first hit the skids. At the time, the standard media narrative was that REITs are evil. Since then, I've added heavily during the other two major drops. At one time, DRG was my largest holding. I've sold off a big chunk of it but we still hold a lot. It would have been ultimate to sell it all in October of last year, at the peak, but most of mine sold in the mid $14 range and I held onto about 1/3 of it. It's one of only a few stocks I've timed well in my life. Dream has run their business like champions. I do not see how they could have done a better job. The issue I have with this is I don't see a future in European office real estate. I see a big chunk of office R-E going away but I don't know when. At some point, in the next couple of years, AI will be able to do our books, engineer basic and even medium complexity items, and do other basic things. I see office staff shrinking, although not to zero and not tomorrow. I just don't know when the music will stop. In the mean time, this thing continues paying well. Not the 10% it paid when I bought it but it's currently just under 6%; that's still fine with us. Does anyone else have a view on EU R-E investments? This is a long shot but: Is anyone else interested in Dream Global REIT? It doesn't seem to fit the profile of other issues which are discussed here but I'm trolling for other old people. lol!
I owned this one years ago but sold it to early. The European market is not the American market, most of the stocks pays only once a year a dividend. And you will pay an extra dividend tax (mostly 15% in most European countries + your taxes in America).
Well pointed out. That applies to accounts which are not tax free. I believe the end of DRG-UN.TO draws near. I don't know when I will be getting out but I know it will be soon (next few months). Meanwhile, the books look amazing. DRG-UN.TO has accounting pornography. They could triple the distribution and still pay their debt down at an accelerated pace.
By the way, I sold 30% of our DRGH-UN last year when it hit $14.50. I was worried about another Greece default and wanted out before the annual drama knocks down Euro stocks. DRG-UN ended up going almost a buck higher, before coming way back down. Now it's back near $14.50 and I would have already sold the rest if the books didn't look so good. They are almost too good to be true.
I didn't think to update this thread until now but DRG-UN is under an all-cash, buy-out offer from Blackstone. The distribution is suspended and the deal is expected to close in December, subject to shareholder approval (vote expected in November). Buy-out price = $16.79
Check out this MotleyFool article in which they recommend DRG as a great dividend stock. DRG stopped their dividend in September. The article was posted last night. https://ca.finance.yahoo.com/news/rrsp-investors-diversify-portfolio-4-164211802.html If there was ever a question on the value these talking heads bring to investing, that question can rest now.
Nice article, it is indeed better to invest worldwide as far as the markets make it possible ....it is also a great way do diverse !
The Blackstone acquisition of Dream Global completed yesterday, after close of business. This company took us a long way and we greatly appreciate their work. Excellent management. Terrific strategists. They did an outstanding job. So long, Dream Global. Thanks for the good times.
