Weekly Series: mREIT And BDC Recommendations (And Price Targets) As Of 07/13/2025
Summary
- It was a week for baby bonds!
- Coverage initiated on TWOD and NYMTH.
- I increased my position in PMTW.
- Scott swapped his MFAN for NYMTH.
- These baby bonds are all offering yields to maturity around 9% to 10%. A great fit for many income investors.
In the exclusive section for full members:
- All of the current ratings and price targets, as we do each time we publish this article.
- The Q2 2025 estimates for earnings and book values (or net asset values for BDCs).
- The dividend projections for each mREIT and BDC for Q3 2025.
We aim to retain the same layout from week to week. I hope that makes it easier to find the parts that are most relevant to you.
Weekly Notes From Colorado Wealth Management Fund
Positions: 1 trade over the last week.
- I purchased 1,136 shares of PMTW at $25.08 per share. This increased my allocation from 1.76% to 3.39%.
Commentary: Last week, we updated the price targets for baby bonds and added coverage on TWOD and NYMTH. My increased allocation to PMTW reflects the strategy of being more active and building some high-yielding positions in investments that should be pretty steady.
Scott’s Ultra-Brief Summary
I "rolled over" most images in the document to factor in the new quarter. As such, the BDC underlying portfolio company credit changes is shorter again (as is the case at the start of any quarter). Subscribers wanting to see all the calendar Q2 2025 changes can simply look in a past newsletter/article. This image will very likely lengthen/populate as the quarter rolls on. Another fairly quiet week for both mREIT BVs + BDC NAVs. If anything, a slight decrease in most hybrid + commercial mREIT BVs with the recent slight rise in rates/yields. The agency mREIT BVs held up fairly well again this week. Certainly better when compared to the events that occurred in early April 2025.
Weekly Notes From Scott Kennedy
Positions: 2 related trades over the past week.
On 7/9/2025, I sold my very minor/tiny MFAN position at a weighted average sales price of $25.10 per share. With the proceeds, I purchased NYMTH at a weighted average purchase price of $24.88 per share. At the time of these trades, both tickers were in the "HOLD" range. Not so much a value play but more so a slightly more enhanced yield play. I accept the slightly higher risk rating with NYMTH (2.5) vs. MFAN (2.0). The total return on my MFAN trade was 6.02% over 3.0 months.
