Weekly Series: mREIT And BDC Recommendations (And Price Targets) As Of 08/24/2025

Summary

• Each analyst closed their position in SLRC on Friday, 8/22/2025.
• The big update on apartment and manufactured home park REITs was published 8/20/2025.
• Another quiet week. The weekly series will be on a break for next weekend due to Labor Day.

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 REIT Forum’s Q2 2025 estimates by Scott Kennedy for earnings and book values or net asset values.
• Tables comparing results to projections.
• 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 past week.

Commentary: I copied Scott’s trade by closing out my position in SLRC following his alert. It was a successful investment in SLRC. All trades delivered materially positive total returns and the annualized rate of return ranged from good to great. I finished the update on apartment REITs and manufactured home park REITs. 

Scott’s Ultra-Brief Summary

“Another fairly quiet week for both mREIT BVs + BDC NAVs. The lone exception to this trend was TWO with their 2nd contingent liability of ~($175) million. I added a couple paragraphs to point #7 discussing this update. As a reminder, we will be skipping the update for next weekend (Labor Day Weekend).”

Weekly Notes From Scott Kennedy

Positions: 1 trade over the past week.  

On 8/22/2025, I sold my entire remaining SLRC position at a weighted average sales price of $16.66 per share. I wanted to capture some attractive gains within this remaining block with Friday's large market rally (which was due to increased odds of a rate cut in September). While SLRC was within my/our appropriately valued (HOLD) range at the time of this trade, I wanted to build up some capital if/when there is some market volatility. If/When such a sell-off occurs, if I am looking for some more BDC exposure, I will likely redeploy capital into BXSL which is currently deemed to be slightly more attractively valued versus SLRC. In the end, a very good/solid SLRC investment with a weighted purchase average price of $13.866 per share and weighted average dividends received of $4.685 per share.  When calculated, a total return of 53.9%.

In general, I am being patient regarding selectively deploying capital in attractively-valued mREIT common stocks with a less attractive risk/performance rating.  My sector allocation to mREIT common stocks remains high (thus aligning with continuing to hold existing positions and selectively adding for future appreciation over the long-term).  Patience remains key as catalysts/events will take time to play out (especially within commercial/multifamily mREITs).  I will continue to remain disciplined regarding “picking and choosing” investments and lot sizes.

BDC Weekly Change: This past week, high yield/speculative-grade credit spreads were, once again, relatively unchanged.   As of late August 2025, we have continued to see a decent retracement in high yield/speculative-grade credit spreads after a very volatile April 2025.  This is mainly due to continued optimism regarding tariff negotiations and semi-attractive economic data (inflation remaining fairly subdued, relatively flat unemployment rate, etc…).  Spreads remain relatively unchanged during calendar Q3 2025 (through 8/22/2025).  

BDC Other Comments (Current Week):

I will continue to monitor Middle East and Russia/Ukraine geopolitical tensions and monitor impacts in high yield/speculative grade markets as new events unfold.  I continue to not anticipate any material/notable direct impacts to the BDC sector from these events.  I am also monitoring all ongoing tariff updates and their impacts to each BDC’s underlying portfolio companies via weekly credit research. As is always the case, I will continue to monitor upcoming U.S. economic data/monetary policy and each event’s impact to the BDC sector.    

Calendar Q1 2025 + Q2 2025 + Q3 2025 Recommendation/Target Range + Risk/Performance Upgrades (Downgrades) (Running Tally):

Underlying Portfolio Company Credit Changes Held by BDCs (Weekly): 3 downgrades, 1 upgrade

Underlying Portfolio Company Credit Changes Held by BDCs (Quarter-to-Date):

This is a running tally of the credit upgrades and downgrades for companies held by each BDC (Bolded Indicates Current Week Change).