VEREIT (previously known as ARCP)

Intrinsic Value: $11.38

Current Price: $8.40

I first learned about VEREIT (back then known as American Realty Capital Properties or ARCP) in 2014 from an article on Seeking Alpha. The very concept of REITs and reliable income is appealing, but usually also implies limited upside. ARCP was more reasonably priced than peers then. Still not cheap enough for me to buy.

In October 2014 the infamous accounting scandal broke out and stock dropped from $12 to $8. It suddenly started to look attractive and I initiated a relatively large position. I kept the stock since then, collecting dividends and sometimes doing small sells, realizing modest profits. After REITs got much cheaper, with increasing treasury rates after Trump’s election, I bought quite a lot, and currently I have cost basis of $8.3 and ~6.5% dividend yield on cost.

I have considered a few other reasonably-priced REITs in the meantime (SOHO, LXP, WPC), but when I looked at the first two, I was a bit worried about the debt levels. And WPC got more expensive than my orders. I still need to revisit them and maybe place an order.