iREIT Daily

Anyone Need a Lyft?

Brad Thomas

467 postsMay 5, 2022

And just like that, the rally we rejoiced in yesterday came crashing down as investors took a step back to assess the Fed’s statement with sober heads. As I said, don’t get caught up in these turbulent market swings. The only way to pin down a profitable portfolio is to stand by solid foundations and strong balance sheets. REITs are obviously some of the best ways to do this.

As far as other sectors, tech is really taking a nosedive in this tumbling market. Tech giants like Zillow (ZG), DraftKings (DKNG), and Carvana (CVNA) all ate the rug this week as the roller coaster of rate increases left the economy in meltdown mode.

Lyft (LYFT), one of Silicon Valley’s most prized rideshare platforms, fell off a cliff after its earnings report revealed driver retention and gas prices are going to cut profits significantly.

The Uber opponent plunged over 33% this week, with a steep descent Wednesday morning right after the report was issued.

Lyft is a great example of how these tech stocks are at the mercy of a very precarious period in our economy. With rising prices and one of the most unstable labor markets in recent history, there are so many problems plaguing private equities.

This is a perfect time to consider diversifying your portfolio with REITs. REITs are not only one of the best hedges against an unstable economy, but the dividend potential and growth opportunities abound. With just a bit of research, you can easily understand the basics of what makes any investment in the REIT market a solid choice for stable returns.

Take Public Storage (PSA) for instance. This REIT acquired 232 facilities and built six more of its own in 2021. It’s now projecting 12–15% revenue growth in 2022. A REIT like this relies on long-term leases, not the whims of consumers, which makes it a great insulation asset against the volatility of other stocks like tech.

American Tower is another great example of a resilient REIT and one I’ve discussed recently as a great inflation fighter. As an owner and operator of wireless and broadcast communications infrastructure in several countries worldwide, this corporation isn’t going anywhere and its reach is only going to expand.

This REIT has been increasing investments in the international market and strengthening its global status through insatiable acquisitions. Also, just last year, it announced the completion of the acquisition of CoreSite Realty Corporation.

Often, the REIT world moves slowly but steadily. When you’re looking at assets bound to lease terms of up to 10 years and infrastructure tied to essential services like cellphone coverage, there’s a lot of resiliency. If you really want to give your portfolio a lift, these are factors I’d consider.

Other Non-REIT News to Know About

California Enters the Cryptosphere

California — one of the largest economies in the world and our nation’s most technologically savvy state — just became the first state to formally begin the process of adopting cryptocurrency. Of course, with this ratification comes the kind of regulations only California can levy.

Earlier this week, Governor Gavin Newsom signed an executive order allowing state agencies to craft regulations for digital currencies. The order also calls for officials to explore more robust blockchain computing capabilities within government operations.

Newsom believes California is poised to pioneer this new non-fiat form of currency.

“Too often government lags behind technological advancements, so we’re getting ahead of the curve on this, laying the foundation to allow for consumers and business to thrive,” Newsom said in a statement.

Could this set a precedent among other progressive states? I guess we’ll find out.

The World According to REITs

As the first quarter (Q1) earnings season comes to wrap, I thought I would highlight some of the more significant announcements in today’s REIT watch.

Agree Realty Corporation Stays Hungry

Agree Realty Corporation (ADC) announced the results of a pretty remarkable Q1 just the other day, with approximately $430 million invested across 124 retail properties. ADC, a $6B+ industry leader in the acquisition and development of properties net leased to blue-chip U.S. retailers, commenced a record 15 development or Partner Capital Solutions (PCS) projects representing total committed capital of approximately $44 million.

Not only that, its core FFO increased 15.5% to $0.97 and AFFO increased 16.4% to $0.97. It also declared an April monthly dividend of $0.234 per share — a 7.8% year-over-year increase.

This blue-chip REIT has been at the forefront of the industry since the early ’90s and they’re as attractive today as they ever were.

Physicians Realty Trust Gains 15%

Physicians Realty Trust (DOC), a REIT centered on the world of healthcare and hospitals, reported Q1 total revenue of $130.4 million, an increase of 15% over the prior year. With $0.06 net income per share and $0.27 normalized FFO, this portfolio has promising potential headed into the summer.

President and CEO John T. Thomas said in the release:

Physicians Realty Trust had a strong first quarter and has remained focused on disciplined capital allocation for the benefit of our shareholders. We believe our portfolio is built for long-term success by providing stable growth in all economic scenarios and will begin to capture additional upside in this inflationary environment. We look forward to sharing more about our first quarter performance during today’s conference call.

This is the kind of investment I’m alluding to in the article above. In the world of REITs, strength is often defined by stability, as opposed to the tech world where factors of a fearful economy can influence your assets in unstable ways.

Happy Investing

Brad Thomas

467 posts

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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.

Finding Peace Of Mind With A Bear Market Wish List

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

Anyone Need a Lyft?

Brad Thomas

467 postsMay 5, 2022

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Anyone Need a Lyft?

467 postsMay 5, 2022

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