ROIC's current share price of $15.93 is trading at a level influenced by the recent S&P 600 induction. I would not recommend buying shares until there is a meaningful margin of safety. I am moving my target BUY price (in my SALSA portfolio) from $14.00 to $14.50. ROIC has become a meaningful player that deserves more shelf space… I knew I should have moved earlier since "you had me at hello".
Admittedly, it may be hard to get your hands on ROIC shares trading under $14.50 (my target price). This REIT is as "hot as a firecracker" and given the CEO's (Stuart Tanz) drive for success, I suspect ROIC will top $20 by year-end. ROIC has a current market cap of around $1.2 billion with a total capitalization north of $1.9 billion. The company now trades at $15.55 with a Price to Funds from Operations (P/FFO) multiple over 18x and a current dividend yield is 4.12%.
Earlier this week, I caught up with Tanz at ReCon 2014 in Las Vegas to discuss his company's first quarter results as well as ROIC's value proposition. You can view this video below:
For more information on ROIC and other REITs in my SALSA portfolio, check out my monthly REIT newsletter HERE.
Disclaimer: This article is intended to provide information to interested parties. As I have no knowledge of individual investor circumstances, goals, and/or portfolio concentration or diversification, readers are expected to complete their own due diligence before purchasing any stocks mentioned or recommended.
Disclosure: I am long O, DLR, VTR, HTA, STAG, UMH, CSG, GPT, ARCP, ROIC, HCN, OHI, LXP, KIM, WPC, DOC. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.