Sold My Shares Of Boardwalk REIT

sold-2

Hey guys how are you? Today’s post is one I don’t like to write very often but sometimes is necessary. Surprisingly enough the last time I wrote a post detailing about when I sold a stock was exactly one year ago today.

On November 15th I sold my entire position in Boardwalk REIT. For the last couple of years Boardwalk has had a tough time due to the low oil prices and all of the job reductions in the oil fields of Alberta and Saskatchewan where Boardwalk has the majority of their properties. This year the company decided to renovate some of their units and have been able to receive higher rent after completion, so I thought things might be turning around and shareholders might start seeing good things from the company.

I guess I should tell you what Boardwalk REIT is in case you are not aware of them.

Boardwalk Real Estate Investment Trust (the Trust) is an open-ended real estate investment trust (REIT). The Company is focused on the acquisition, refurbishment, management, ownership and development of multi-family residential communities within Canada. The Trust owns over 200 properties containing approximately 33,770 residential units within the Provinces of Alberta, Saskatchewan, Ontario and Quebec, representing over 30 million net rentable square feet. Its assets represent a portfolio of residential real estate, both from the standpoint of geographic diversification and mix of asset type, which consists of mid-sized suburban and downtown apartment buildings, and regional, mid-sized community and neighborhood residential centers located in urban markets. Its residential properties in the portfolio are located in Montreal and Quebec City, Quebec; London and Kitchener, Ontario; Saskatoon and Regina, Saskatchewan, and Edmonton, Grande Prairie, Banff, Red Deer and Calgary, Alberta.

(Source: RBC Direct Investing)

Why Did I Sell

I sold my shares because on November 14th after the markets closed Boardwalk released their 3rd quarter results. In those results it was announced that the company had a new strategy. Part of that strategy is to diversify which is a good thing in my opinion, now they want to have a portfolio that is 50% in Alberta & Saskatchewan and the other 50% in other areas around the country such as Vancouver, Montreal, Toronto etc…  Now you are probably saying diversifying is a good thing why sell? Well in order to do this the company also announced they were slashing the distribution 56% starting with the January 2018 payment the distribution will drop to $1.00 annually from $2.25.

That decision would have cut my income by $117.50. Every time I see a company cut their distribution little alarm bells go off in my head so I decided it was time to sell and move onto something else.

I will say this this decision may in the end become beneficial to Boardwalk and it’s shareholders over the long term but for me I am all about growing my income, and I believe their are better opportunities out there.

My Returns From Boardwalk

I first purchased shares of Boardwalk in February 2016. On November 15th the book cost of my investment was $3,932.08, when I sold my 94 shares I received $3,724.67 so I am down $207.41. Now if I include the dividends I have received which were $329.73 I come out slightly positive in my investment.

Well guys thanks for reading stay tuned shortly I will announce what I purchased to replace Boardwalk. So do you think I made a good decision to sell? Do you sell when one of your stocks cuts it’s dividend?

Thanks

Matthew

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8 thoughts on “Sold My Shares Of Boardwalk REIT

  1. Sometimes sells are a good thing. Honestly im surprised boardwalk hasnt pulled back more. Still hovering around 39 bucks. I sold my position in our sons resp for basicslly break even. I kept 28 stocks in my tfsa since they are down 15%. I think longterm this will be a good move for boardwalk though.
    Interested to see what u buy. Ive been debatimg a railroad with the proceeds but waiting on these nafta negotiations to open a better buying oppotunity!
    Cheers

    Liked by 1 person

    1. Thanks for stopping by. I’m surprised as well at the share price. I agree as well that in the long term this will help the company, for me I didn’t want to lose that income. Maybe in the future I will check in and see how they are doing. I am a fan of CN I hope the nafta talks are productive and successful. Thanks

      Like

  2. Matthew thank you for sharing. We sold all our position of 200 shares in Dream Office Real Estate Investment Trust (TSE:D.UN) for the same reason reduction of dividends. We can tolerate a share price drop because of Mr. Market, but reducing dividends is something more fundamental for us because we plan to live off passive income streams and cannot rely on such companies in our retirement.

    Liked by 1 person

  3. Reduction of dividend is not always bad. It all depends how the company is planning to use the money the save on payouts. When Dream Office REIT reduced their dividends, the stock price went up from 13 to 21. When the dust settles, these things just take off! Any plans for your next purchase? $3.7K is a nice chunk of money.

    Liked by 1 person

    1. Thanks I agree with you it depends on how a company uses the money. I think in the long run this will help Boardwalk. As to what I will do with the money I have already purchased two stocks with it 😀

      Like

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