iREIT Daily

Commenting on Friday’s Close and What to Expect This Week

Brad Thomas

467 postsJanuary 31, 2022

Let’s first address how stocks closed on Friday, where:

The S&P 500 rose 105.34 points, or 2.43%
The Dow rose 564.69 points, or 1.65%
The Nasdaq rose 417.79 points, or 3.13%.

And, for what it’s worth – which admittedly isn’t much – the Nasdaq is up again slightly as I write this at 9:00-ish. Its fellow indices have lost some, but Nasdaq futures are showing a gain of 34 points, or 0.24%.

That’s presumably in part because investors are anticipating results from several tech giants this week. But before I address them, here’s some commentary from Reuters to finish commenting on Friday’s close:

Wall Street surged on Friday, notching its best day so far in 2022 after another zigzag session, ending a tumultuous week marked by mixed corporate earnings, geopolitical turmoil, and an increasingly aggressive Federal Reserve.

But mostly, I’d argue (as does Reuters later on in the article), the Federal Reserve. More about that later too.

The article also reads:

The S&P 500 and the Dow posted gains from last Friday’s close, but the Nasdaq was essentially flat on the week, capping give days of topsy-turvy trading.
Still, the bar for ‘best daily gains of the year’ was rather low. Even with Friday’s jump, the S&P 500 is down 7% so far in 2022, with the Nasdaq and the Dow suffering respective drops of 12% and 4.4% over the same period.

For the record, Nasdaq heavyweights Meta Platforms/Facebook (FB) will report tomorrow. So will Alphabet/Google (GOOG), and Amazon (AMZN) will take its official turn on Thursday.

Friday then, we get the latest employment data in the form of the Department of Labor’s monthly jobs report. So we could potentially see more market recovery as we enter February.

Then again, maybe not.

More Non-REIT News to Know About

As I mentioned in Friday’s blog, Apple (AAPL) released its Q4 information this past Thursday. “The tech giant reported revenue of $123.95 billion instead of the $119.05 billion expected. And earnings per share (EPS) was $2.10 versus $1.90.”

That prompted investors to push shares up 11.11% on Friday, which means they didn’t care about the Reuters report that:

Apple… is stifling competition through its mobile app store, attorneys general for 34 U.S. states and the District of Columbia said on Thursday, as they appealed against a ruling that let the iPhone maker continue some restrictive practices.

In short, they’re siding with Epic Games in the ongoing Epic v. Apple lawsuit.

While Epic CEO Tim Sweeney has been battling big(gest) tech for years, this particular effort says Apple has a monopolistic hold on its app store.

Last year, his company mostly lost that case in court, a decision it’s appealing. It might make some headway now considering how even the Department of Justice has challenged the verdict, writing that the court in question had “committed several legal errors that could imperil effective antitrust enforcement, especially in the digital economy.”

It’s quite interesting to see this era of dueling love and hate toward big tech. And I’m sure I’ll give you updates as it continues.

Until then, the Fed really does seem to be weighing on big tech more than any “little old” legal problems. JPMorgan (JPM) says it expects five rate hikes this year, and Bank of America (BAC) is predicting seven for a total rise of 25 basis points (bps).

“‘The Fed has all but admitted that it is seriously behind the curve,’” Yahoo Finance quoted Bank of America as saying. “‘With that said, the markets are doing the Fed’s job of tightening financial conditions without an actual hike.’”

The World According to REITs

This next bit of news can and will affect real estate investment trusts (REITs), despite falling in a completely different category…

Parts of the U.S. Northeast got blasted with record amounts of snow over the weekend. And they continue to face exceptionally cold, even dangerous, temperature levels.

Massachusetts. New York. New Jersey. Pennsylvania. They all got slammed by the nor’easter, which dropped 23.6 inches of snow on Boston, 7.3 on NYC, 14 on Atlantic City, and almost six on Philadelphia.

Add in the power outages the strong storm caused – which are still being dealt with today – and you’d better believe there will be less economic activity when it comes to flights and fun for a little bit.

Plus, there are more big storms reportedly set to hit others states this week.

Not that these wintery blasts will change any of the following updates, but I do imagine that retail REITs like Tanger (SKT) will be seeing less foot traffic for a bit.

LXP Industrial Trust (LXP) said Land & Buildings Investment Management expressed interest in acquiring it at $16 per share. As such, the REIT’s board will be reviewing the cash offer to determine its next course of action.
Safehold (SAFE) says its Safehold Operating partnership L.P. signed a definitive master note purchase agreement. This involves a private placement of $475 million worth of its 3.980% senior notes due February 15, 2052. The proceeds will go toward paying down its unsecured revolving credit facility as well as for general corporate purposes.
Orion Office (ONL) announced it will continue its partnership with Arch Street Capital Advisors to acquire long-term leased, single-tenant assets. So far, the venture has purchased six office properties for about $227 million. Its sought-after price range is $10 million to $60 million.

Then, as you can see below, we had more winners than we had losers last trading session. Though, man, how the two top losers did fall regardless.

(Source: The Daily REITBeat)

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.

Dividend Growth Stock of the Week: Canadian National Railway Company

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

Commenting on Friday’s Close and What to Expect This Week

Brad Thomas

467 postsJanuary 31, 2022

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Commenting on Friday’s Close and What to Expect This Week

467 postsJanuary 31, 2022

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