iREIT Daily

And the REIT Goes On… Energizer Bunny Style…

Brad Thomas

467 postsApril 29, 2021

First things first: There’s breaking news that Realty Income (O) will be acquiring Vereit (VER) – that the two companies have entered into a definitive merger agreement to create a united entity worth about $50 billion!

That’s something I’m writing a larger piece about even right now. So stay tuned for more details about this epic move in tomorrow’s blog post.

As for today’s, here’s how I was originally going to start it…

How many real estate investment trusts (REITs) reported quarterly earnings yesterday? Let us count the names:

Piedmont Office (PDM) beat its Zacks Consensus Estimate funds from operations (FFO) figure of $0.47 per share by one cent and matched last year’s Q1 figure exactly. That means it’s beat estimates three times in the last four quarters.
Paramount Group (PGRE) topped its own FFO estimates of $0.21 per share by $0.02. That was down solidly from the $0.27 it posted the same time last year. But, on the plus side, it’s beat estimates twice in a row now.
Duke Realty (DRE) might have “only” matched expectations of $0.39 per share. But that’s still a $0.06 bump year-over-year. Plus, it’s matched analyst evaluations the past two quarters and surpassed the two before.
CyrusOne (CONE) showed per-share FFO of $1, which was $0.02 better than anticipated and $0.03 better than what it posted for Q1-20. Really, you’d think people would start yawning at its outperformance by now considering how that’s all it’s done in the past year.
Extra Space Storage (EXR) reported $1.50 per share, $0.01 better than expected for the quarter and $0.26 better than 2020’s matching three-month period. Like CyrusOne, it’s an “Energizer Bunny” REIT that just keeps going and going and going some more.

That was just the start to it. There was lots and lots of data to digest above and beyond that too.

Admittedly, not everything out today is peachy perfect. As I said yesterday, there’s more to a story than just the headline.

For that matter, there’s more to the story than just the summary. Or the actual writeup from start to finish.

In short, there are always more details out there – all of which I do my absolute best to incorporate into each analysis that I do.

Never forget that as you do your own!

The World According to Commercial Real Estate

For even more weekday REIT reports and analysis, sign up for my Intelligent REIT Daily e-letter – for free. I try to include different updates there than I do here to cater to my most loyal readers who follow me across multiple platforms.

I know I include a LOT of information in this particular post, with even more down below (including a bonus fourth update). But there was still enough information out there right now that I didn’t have to duplicate a thing.

That’s why, over here at Another Day in REIT Paradise, you’ll learn that:

Welltower (WELL) beat its Q1 FFO expectations of $0.75 per share by $0.05. That’s still significantly down from its $1.02 from Q1-20, though the company has consistently surpassed estimates for four quarters in a row now in this regard. (From a revenue perspective, however, not so much).
Kilroy Realty (KRC) missed its Zacks Consensus FFO figure of $0.99 per share by a single cent, putting it two cents behind this time last year. And revenue came in at $235.65 million for the quarter, making for a slight 0.88% miss but a tidy bump up from last year’s $221.33 million.
Hersha Hospitality (HT) reported a quarterly loss of $0.36 per share, which was better than Zacks’ prediction of $0.48. For that matter, it beat expectations last quarter as well. The results were still negative, to be clear, but not as bad as they could have been.

I’m going to interrupt myself here to double down on my the-headlines-aren’t-everything lecture I mentioned (again) in the intro. “Beating expectations” always sounds like such a positive. And “missing expectations” always sounds like something to stress out about if you’re a shareholder.

But before you stress or celebrate, read all the details. Then analyze. Then act accordingly.

When you do, you might find that the situation isn’t nearly as drastic as you first thought, as our bonus entry shows…

Empire State Realty Trust (ESRT) reported stable rent collection levels for the previous quarter; 26 new, renewed, or expanded leases signed; and same-store property cash net operating income (NOI) up 3% year-over-year, with $1.4 billion of liquidity and no outstanding debt maturing through 2024.

In other words, I don’t think it’s going to collapse any time soon.

Here at ADiRP, you’ll also learn that:

(Source: The Daily REITBeat)

And over at the Intelligent REIT Daily e-letter, you’ll learn all of this!

Happy Investing

Brad Thomas

467 posts

View all my Posts

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.

Some Serious “Wows!” in Realty Income’s Merger News

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

And the REIT Goes On… Energizer Bunny Style…

Brad Thomas

467 postsApril 29, 2021

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And the REIT Goes On… Energizer Bunny Style…

467 postsApril 29, 2021

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