iREIT Daily

A Parade of REITs and Other Real Estate News

Quote of the Day:

“When doing in-depth analysis of companies, I care very much about long term earnings power. Not necessarily so much about the volatility of that earnings power but about my certainty of ‘normal’ earnings power over time.”
– Joel Greenblatt

(Source: Mauna Loa Helicopter Tours: an aerial shot of one of Hawaii’s active volcanos)

There are days when it’s really difficult to find worthwhile information to report to you readers.

And then there are days like this.

As I told you yesterday, earnings season is in full swing, with the following companies all reporting their quarterly and full-year results:

Alexander & Baldwin (ALEX)
American Homes 4 Rent (AMH)
Braemar Hotels & Resorts (BHR)
Mack-Cali Realty (CLI)
CubeSmart (CUBE)
Diversified Healthcare Trust (DHC)
JBG Smith Properties (JBGS)
Outfront Media (OUT)
Park Hotels & Resorts (PK)
RLJ Lodging Trust (RLJ)
STORE Capital (STOR)
Washington Prime Group (WPG).

That was at the exact time “the world’s biggest bond market spoke loud and clear… [that] growth and inflation are moving higher.” To continue quoting Yahoo Finance:

“The message wreaked havoc across risk assets.
“[The] benchmark 10-year Treasury catapulted to the highest in more than a year at over 1.6%, and traders yanked forward their opinion of how soon the Federal Reserve will be forced to tighten policy. Equities tumbled, as higher borrowing costs put pressure on soaring valuations. Even Treasury Secretary Janet Yellen felt the sting, with record-low demand for a fresh round of government debt.”

So if you were wondering why the markets behaved the way they, taking that much of a turn for the worst, now you know.

As usual, I don’t want to run too long with this writeup, but I do want to squeeze in the fascinating fact that California businesses aren’t just finding new homes in Texas and Florida.

They’re apparently relocating to Oklahoma as well.

Californians in Oklahoma? Really?

The latter’s Governor Kevin Stitt is saying he wants to make his state “a top 10 place for business.”

“We’re having companies from California, some of these heavily regulated states: high-tax states. States that are just so frustrated that they’re still shut down,” reaching out, he told Fox Business the other day. “Hundreds of companies are calling and reaching out. And we’ve never had more appetite to move to Oklahoma.”

The same goes for parents who realize Oklahoma’s schools are open, he says.

Talk about the dawning of a new age. 2020 really was a gamechanger.

We’ll adapt as we need to, but don’t think we’ll be giving up on certain coastal plays. The facts are still in their favor right now, even with all things considered.

The World According to Commercial Real Estate

In honor of the mounds of REIT earnings that came out yesterday, I’m going to give you more than the standard three updates and insights from The Daily REITBeat.

This isn’t the full list below. But I hope it helps you form a better big picture nonetheless:

Alexander & Baldwin (ALEX) reported same-store net operating income (NOI) that was down 19.3% year-over-year and Q4 core funds from operations (FFO) of $0.17 per share. It’s currently projecting full-year 2021 guidance of $0.67, and says it ended 2020 occupancy down only 40 basis points.
Mack-Cali Realty (CLI) recorded Q4-20 core FFO of $0.16 per share and is giving Q1-21 guidance of $0.12-$0.15. Its 4,890-unit multifamily Roseland stabilized portfolio was 92% leased at the end of the year, a slight uptick from Q3’s 81.7%, and its same-store occupancy rose by 130 basis points for the quarter, a trend it says continued last month with another 40 bps increase.
Park Hotels & Resorts (PK) announced that Q4 revenue per available room (RevPAR) fell 84.5% to $27.48 year-over-year. On the plus side, it now has 50 of its 60 hotels open and operating; and it expects to open the rest over the next few months.
STORE Capital saw FFO of $0.44 per share last quarter and is expecting full-year 2021 adjusted FFO of $1.90-$1.96. It added that it invested $435.6 million into 84 properties with an 8.1% weighted average initial cap rate. And it sold 34 others for a $16 million net gain.
CoreCivic (CXW) signed a 90-day contract extension with the U.S. Marshals Service at its 2,016-bed Northeast Ohio Correctional Center, though the government has informed it that will probably be the end of that particular partnership after the current agreement expires.
Life Storage (LSI) launched its third micro-fulfillment center in Chicago, Illinois, through its subsidiary, Warehouse Anywhere.

In other news, as you can see below, we’re back to more significant levels of volatility. In the moment, that might seem intensely uncomfortable.

But let’s keep looking for the opportunities in the midst of it all. I assure you there’s plenty to find.

(Source: The Daily REITBeat)

Happy Investing

Brad Thomas is Senior Research Analyst at iREIT and CEO of Wide Moat Research LLC. With over 30 years of real estate experience, he is also long-time Editor of Forbes Real Estate Investor, a monthly subscription-based newsletter that dives deep into the vast world of profitable properties, and since 2021, he has served as an adjunct professor at New York University.

Thomas has also been featured on or in Forbes magazine, Kiplinger's, U.S. News and World Report, Money, NPR, Institutional Investor, GlobeStreet, CNN, Newsmax, and Fox. And he was the #1 contributing analyst on Seeking Alpha in 2014, 2015, 2016, 2017, 2018, 2019, 2020 and 2021 based on both page views and number of followers.

Thomas is the recently-published author of The Intelligent REIT Investor Guide (2021), co-author of The Intelligent REIT Investor (2016), and he wrote The Trump Factor: Unlocking The Secrets Behind The Trump Empire (2016) - all available on Amazon.

Thomas received a bachelor of science in business/economics from Presbyterian College and is married with five wonderful kids.

How To Protect Your Portfolio From Rising Interest Rates

REIT Mutual Fund	Symbol
Alpine Realty Income and Growth Fund	AIGYX, AIAGX
American Century Real Estate Fund	REAIX, REACX, AREEX, AREWX, ARYCX, AREDX
Real Estate Securities Fund	MRESX
AR Capital Real Estate Income Fund	ARIAX, ARICX, ARIPX
AssetMark Real Estate Securities Fund	AFREX
Aston/Harrison Street Real Estate Fund	AARIX, ARFCX
Baron Real Estate Fund	BREIX, BREFX
BlackRock Real Estate Securities	BIREX, BAREX, BCREX
Brookfield U.S. Listed Real Estate Fund	BRUAX, BRUCX, BRUIX, BRUYX
CGM Realty Fund	CGMRX
West Loop Realty Fund	REIIX, REIAX, REICX
Cohen & Steers Institutional Realty Shares	CSRIX
Cohen & Steers Realty Income Fund	CSEIX, CSDIX, CSBIX, CSCIX
Cohen & Steers Realty Shares	CSRSX
Columbia Real Estate Equity Fund	CREAX, CREIX, CRRVX, CRERX, CREEX, CRRFX, CREWX, CRECX, CREBX
Compass EMP REC Enhanced Volatility Weighted Fund	CWRAX, CWRIX, CWRTX, CWRCX
Davis Real Estate Fund	RPFRX, DREYX, DRECX, DREBX
Delaware Real Estate Investment Trust Portfolio II	DPRTX, DPRBX
Delaware Real Estate Investment Trust Portfolio	DPREX, DPRSX, DPRRX, DPRCX
DFA Real Estate Securities Portfolio	DFREX
Dunham Real Estate Stock Fund	DAREX, DNREX, DCREX
DWS RREEF Real Estate Securities Fund	RRRRX, RRREX, RRRAX, RRRSX, RRRBX, RRRCX
DWS RREEF Real Estate Securities Income Fund	REFAX, REFCX, REFIX, REFSX
Eaton Vance Real Estate Fund	EAREX, EIREX
EII Realty Securities Fund	EIIRX
Fidelity Advisor Real Estate Fund	FHEIX, FHEAX, FHETX, FHECX, FHEBX
Fidelity Advisor Real Estate Income Fund	FRIRX, FRIQX, FRINX, FRIOX
Fidelity Real Estate Income Fund	FRIFX
Fidelity Real Estate Investment Portfolio	FRESX
Fidelity Spartan Real Estate Index Fund	FSRNX, FRXIX, FSRVX
Fidelity Series Real Estate Equity Fund	FREDX, FREFX
Fidelity Series Real Estate Income Fund	FSREX, FSRWX
Forward Real Estate Long/Short Fund	KSRYX, FRLSX, FFSRX, KSRAX, KSRCX, KSRBX
Forward Real Estate Fund	FPREX, FFREX, KREAX, KRECX
Forward Select Income Fund	KIFYX, FSIMX, FFSLX, KIFAX, KIFBX, KIFCX
Franklin Real Estate Securities Fund	FREEX, FRLAX, FRRSX, FSERX
GMO Real Estate Fund	GMORX
Goldman Sachs Real Estate Securities Fund	GREIX, GRETX, GREAX, GRESX, GRERX, GREBX, GRECX
Great-West Real Estate Fund	MXREX
Heitman REIT Fund	OARTX, OBRTX
ING Real Estate Fund	CRARX, IREWX, IDROX, CLARX, CRWRX, CRCRX, CRBCX
INVESCO Real Estate Fund	REINX, IARFX, IARIX, IARYX, IARAX, IARRX, IARCX, AARBX
Ivy Real Estate Securities Fund	IRSAX, IREIX, IRSYX, IRSRX, IREEX, IRSCX, IRSBX
John Hancock Real Estate Securities Fund	JIREX
Johnson Realty Fund	JRLTX
J.P.Morgan Realty Income Fund	URTLX, JRIRX, URTAX, URTBX, URTCX
J.P. Morgan Security Capital U.S. Core Real Estate Securities Fund	CEEAX, CEERX, CEEFX, CEESX, CEECX
J.P. Morgan U.S. Real Estate Fund	SUSIX
Lazard U.S. Realty Equity Portfolio	LREIX, LREOX
Lazard U.S. Realty Income Portfolio	LRIIX, LRIOX
Manning & Napier Real Estate Series	MNRIX, MNREX
Morgan Stanley Institutional U.S. Real Estate Portfolio	MSUSX, MUSDX, MSULX, MURSX
Natixis AEW Real Estate Fund	NRFAX, NRFYX, NRFBX, NRFCX, NRFNX
Neuberger Berman Real Estate Fund	NBRIX, NBRFX, NREAX, NRERX, NRECX, NRREX
Nuveen Real Estate Securities Fund	FREAX, FARCX, FRSSX, FREBX, FRLCX, FREGX
Oppenheimer Real Estate Fund	OREAX, OREIX, OREYX, ORENX, OREBX, ORECX
PHOCAS Real Estate Fund	PHREX
PIMCO RealEstateRealReturn Strategy Fund	PRRSX, PETPX, PETAX, PETDX, PETCX, PETBX
Pioneer Real Estate Shares	PWREX, PYREX, PCREX, PBREX
Principal Real Estate Securities Fund	PIREX, PIRPX, PREPX, PRETX, PREJX, PRRAX, PRERX, PRENX, PRAEX, PRCEX, PRLEX
ProFunds Real Estate UltraSector ProFund	REPIX
Prudential Select Real Estate Fund	SREAX
Prudential U.S. Real Estate Fund	PJEAX, PJEZX, PJECX, PJEBX
REMS Real Estate Income 50/50 Portfolio	RREIX
REMS Real Estate Value-Opportunity Fund	HLRRX, HLPPX
Rydex Real Estate Fund	RYREX, RYHRX, RYCRX
SA Real Estate Securities Fund	SAREX
SEI Institutional Mgd Real Estate Fund	SETAX, SEIRX
Spirit of America Real Estate Income & Growth Fund	SOAAX
SSgA Clarion Real Estate Fund	SSREX
Stratton Real Estate Fund	STMDX
T.Rowe Price Real Estate Fund	TRREX, PAREX
TIAA-CREF Real Estate Securities Fund	TIREX, TRRPX, TRRSX, TCREX
Vanguard REIT Index Fund	VGSNX, VGRSX, VGSLX, VGSIX
Virtus Real Estate Securities Fund	PHRAX, PHRIX, PHRCX, PHRBX

REIT ETF	Symbol
Flex Shares	ASET
Wisdom Tree Global Ex-US	DRW
S&P 500 Equal Weight	EWRE
iShares FTSE Industrial/Office	FNIO
MSCI Real Estate Index	FREL
S&P REIT Index	FRI
First Trust S&P REIT	FRI
iShares Real Estate 50	FTY
Flexshares Global	GQRE
iShares Cohen & Streers	ICF
iShares International Developed RE	IFGL
iShares US RE	IYR
Premium Yield Equity REIT	KBWY
ETRACS Monthly Pay 2x Leverage	MORL
Market Vector Mortgage	MORT
iShares Global REIT	REET
iShares FTSE Mortgage	REM
iShares Residential	REZ
IQ US Real Estate Small Cap	ROOF
iShares FTSE NAREIT Retail	RTL
DOW Jones Global RE	RWO
SPDR Dow Jones	RWR
Schwab US REIT	SCHH
Super Dividend REIT	SRET
ProShares Ultra RE	URE
Vanguard REIT	VNQ
Vanguard Global ex-US	VNQI
iShares International Developed	WPS
Wilshire US REIT	WREI
Pacer Benchmark Data & Infrastructure RE	SRVR
Pacer Benchmark Industrial RE	INDS
Pacer Benchmark Retail RE	RTL
Hoya Capital Housing	HOMZ
NetLease Corporate RE	NETL

REIT Name	Ticker	Annual Increases/yr
Federal Realty	FRT	51
Universal Health Realty	UHT	33
National Retail Properties	NNN	29
Realty Income	O	27
Tanger Outlets	SKT	26
Urstadt Biddle	UBA	25
Essex Property Trust	ESS	25
W.P.Carey	WPC	22
National Health Investors	NHI	17
Equity Lifestyle	ELS	15
Digital Realty	DLR	15

A Parade of REITs and Other Real Estate News

Brad Thomas

467 postsFebruary 26, 2021

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