And what did I do? Exactly the opposite of what people usually do when everything is falling: I increased my holdings instead of waiting.

I added to three positions I already held:

🟢 Realty Income ($O (+0,09%) ) — 5.8% dividend yield and a 48.7% payout ratio based on AFFO. 674 consecutive monthly dividends without fail.

🟢 Gecina ($GFC (-0,92%) ) — 8.6% yield and trading at a 53% discount to its net asset value.

🟢 VICI Properties ($VICI (-0,55%) ) — 7.9% yield, 10.1x P/FFO, near 52-week lows.

And I’ve opened two new positions:

🟢 McCormick ($MKC (-0,06%) ) — 8.2x P/E ratio and 3.8% yield. Dividends have increased for 40 consecutive years.

🟢 NatWest ($NWG (-1,39%) ) — 8.8x P/E ratio, 14.8% ROE, and 5.1% yield.

All five are rated “OPTIMAL” by my system. That does NOT mean they’re perfect, so I’ll also tell you what concerns me about each one:

⚠️ VICI relies on Caesars and MGM for nearly 70% of its revenue.

⚠️ Gecina has negative free cash flow due to mandatory renovations of its buildings in France.

⚠️ Realty Income is highly sensitive to interest rates.

⚠️ McCormick is dealing with strikes and an active boycott against some of its brands.

⚠️ NatWest cut its dividend in 2021 and 2023: once due to regulatory requirements and once due to a one-time event that didn’t recur.

Source: Enagás ($ENG (+0,89%)
)

• Price: -14% since my purchase.
• Dividends received on the position: ~50% of the investment → the overall trade is profitable.
• Why am I selling? The investment thesis has changed. The dividend was cut by 16.4% in 2024 to finance its shift to hydrogen, and the coverage ratio based on free cash flow is only 0.36x. My model rates it as 🟠 CAUTION (Quality 42 / Opportunity 62): fossil gas in structural decline + unproven bet.

Entry: 3 European stocks that the model rates as 🟢 OPTIMAL

• Gecina ($GFC (-0,92%)
  ) — Parisian REIT. Yield 7.86%, a discount of 49% off NAV. Quality 75 / Opportunity 85.
• LEG Immobilien ($LEG (-0,32%) )— German residential real estate. Yield 5.87%, a discount of 55% discount to NAV. Quality 75 / Opportunity 90.
• Vinci ($DG (-0,24%)
  ) — infrastructure. P/E 12.7, yield 4.23% + total shareholder yield of 10.76%. Quality 83 / Opportunity 85.

Same pattern across all three: non-monetary devaluations due to interest rates that are weighing on the price, while rent and cash flow remain solid. A temporary problem, not a broken business model.

To be honest: LEG took a hit in 2024 (-39.8%) as part of a strategic reset and has already rebounded (+10.2% in 2025), and Vinci’s toll road concessions expire between 2032 and 2036. They aren’t perfect—that’s why they’re cheap.

Do you see value in Gecina and LEG at these discounts, or is the European real estate sector still under pressure from interest rates?

Both are rated 🟢 OPTIMAL by my algorithm. They’re the perfect example of why you shouldn’t invest based solely on financial news headlines:

⚡ $ELE (+0,29%) : “The nuclear power business in Spain has an expiration date.”

Reality: A super-safe 3.3% yield, a confirmed 48% dividend increase, and very well-managed debt for a utility. The power grids are making money while they transition.

🏢 $$GFC (-0,92%) : “Real estate prices are falling, and rate hikes are destroying REITs.”

Reality: Purely accounting losses. The company is generating cash like crazy in Paris, and you can get in today by buying its premium assets at half price (49% discount to NAV).