iREIT Daily

Are You Properly Prepared for What’s Right Around the Corner?

Brad Thomas

467 postsMarch 26, 2021

Quote of the Day:

“Inflation is the most universal tax of all.”
– Thomas Sowell

(Source: StoryBlocks)

It’s another one of those mornings where there’s a whole lot to write about with too many potential topics to organize in any orderly fashion.

I’ve had to pick and choose as a result, but Yahoo Finance’s article about “17 Food Companies That Have Warned About Rising Inflation” definitely makes the cut.

“Start saving those pennies now,” it advises, “because your grocery bill will likely head higher [as] soon as food giants pass along inflationary costs in transportation and those related to new Covid-19 related protocols.”

Ouch.

Jefferies food sector analyst Rob Dickerson recently released a research note that points to big-name brands such as Campbell Soup (CPB), General Mills (GIS), Kraft Heinz (KHC), McCormick (MKC), and Hershey (HSY) warning about rising levels of inflation.

As we all know, when a company gets hit with added rules, regulations, and other hardships, it’s very likely the consumer will pay the ultimate and quite literal price whether anyone likes it or not.

Meanwhile, the “bubble or no bubble” debate continues on, with Bridgewater Associates billionaire Ray Dalio warning that we’re “halfway” to the kind of unjustified expansion that led to the dot.com crash. Yet Goldman Sachs shrugged that concern off with a memo of its own by calling near-term risk of such things “relatively low.”

By now, most of my readers know that I do think most stocks are overvalued. Last year’s recovery was one of the fastest ones we’ve ever seen – and from one of the biggest drops we’ve ever seen. So while I was more than happy to participate in it to some degree, the key words there are “to some degree.”

Valuation is far too important a factor for me to ignore. Because even the most solid of companies can lose us a lot of money if we buy into them when they’re trading at unsustainable levels.

Last but not least on my “general details” coverage list this morning, I do want to focus on real estate for a moment: New York City real estate, to be precise.

Despite the debacle of early 2019, when Representative Alexandria Ocasio-Cortez helped pressure Amazon (AMZN) to abandon its idea of establishing a second headquarters in Queens… Amazon still wants a better grip on the Big Apple.

Millionacres writes:

“New York City is notoriously jam-packed, and its streets offer little room for delivery vehicles. Warehouse space is also extremely limited in the city, making it harder to fulfill orders quickly for certain zip codes. It’s for this reason that Amazon has been steadily seeking to expand its warehousing resources in New York City and the surrounding area…
“To date, the online retail giant has amassed at least 12 warehouses spread out across New York City’s five boroughs, one of which is a massive 1 million-plus square-foot space. Amazon has also added over two dozen warehouses to its portfolio in the suburbs surrounding New York City.”

Keep in mind that this company is run by one of the richest men in the world who has almost unfathomable resources at his disposal – including data mining and analysis that is literally out of this world.

You really think he’s going to make that much effort to expand his presence in a city that’s dead?

I’m not saying that’s a fool-proof argument, mind you. Neither Bezos nor Amazon are omnipotent by any stretch of the imagination.

At the same time, they’ve done pretty well so far, to say the least. So on top of everything else I’m seeing about New York these days, I remain cautiously optimistic about its mid-term future.

The World According to Commercial Real Estate

The last 24 hours in REIT-dom have been filled with a spate of internal upgrades as companies continue to emerge from the shutdowns and assess their changed landscapes. For instance:

Regency Centers (REG) promoted two current employees: Scott Prigge to manager director of property operations and Barry Argalas to senior vice president of national transactions and investment strategy.
Kite Realty Group Trust (KRG) appointed Derrick Burks to its board as an independent member. In all, the company now has 10 trustees.
Apartment Income REIT (AIRC) promoted Patti Shwayder from senior vice president of strategic partnerships to chief corporate responsibility officer.

There was also some analyst movement about the REITs in our coverage, though not all of that was positive. For one, S&P revised its outlook on Federal Realty Investment Trust (FRT) from stable to negative “to reflect longer than anticipated pressure on leverage metrics.”

I guess we’ll have to see how long it takes for the business to get back in S&P’s good graces from here.

In the meantime, here are other short-term losers and winners:

(Source: The Daily REITBeat)

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.

A “New” Approach to Brick-and-Mortar Retail

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

Are You Properly Prepared for What’s Right Around the Corner?

Brad Thomas

467 postsMarch 26, 2021

Featured Articles

The Great Housing Market Migration Is VERY Interesting

Let Dividends Help You Deal With Disappointment In The Stock Market

Amazon Wants to Ask What Ails You

Wall Street’s Workforce Crisis Should Be Taken Seriously

Santa Claus Has Left the Building

Are You Properly Prepared for What’s Right Around the Corner?

467 postsMarch 26, 2021

REIT Mutual Funds

REIT ETFs

Not All Dividends Are the Same