iREIT Daily

Controversial Companies Report This Week

Brad Thomas

467 postsFebruary 7, 2022

This should be an interesting earnings week considering how a number of controversial companies are reporting. That includes the likes of Peloton (PTON) on Tuesday and these three on Thursday:

Zillow Group (Z)
Twitter (TWTR)
Kellogg (K).

Then there’s the list of reopening plays like Uber (UBER), Lyft (Lyft), and Expedia (EXPE) set to release their records on Monday, Tuesday, and Thursday, respectively. Also due today is a big-name real estate investment trust (REIT), Simon Property Group (SPG).

Clearly, I’ll cover that one.

Speaking of earnings season information, The Wall Street Journal published “What CEOS Are Saying: ‘Business Has Come Back Roaring’” on Saturday. The article’s subhead reads: “Senior executives at UPS, Starbucks, Amazon, and other major companies weigh in on inflation, supply-chain issues, and the pandemic.”

Some of the quotes it included were…

Starbucks (SBUX) CEO Kevin Johnson: “Like most economists, we anticipate supply-chain disruptions will continue for the foreseeable future. We have already taken pricing actions this fiscal year… and we have additional pricing actions planned through the balance of this year.”

As a Starbucks “appreciator” (i.e., addict), that’s not the news I want to hear. But I can’t say it’s unexpected.

UPS (UPS) CEO Carol Tomé: “… the first week of January, I’m like, where are the customers?… but the business has come back roaring. So we’re feeling really good about the guidance that we’ve just given.”

And Clorox (CLX) CFO Kevin Jacobsen noted that this is “the fourth inflationary cycle” the company has experienced in the last 10 years.” Before, it’s “been able to fully price and drive our cost-savings program to offset the cost inflation [and] rebuild margins” in 12-18 months.

As for this time around, it will probably “take longer” thanks to today’s “extreme level of inflation.”

More Non-REIT News to Know About

It’s a long list of companies the Journal featured, so I’ll just cover two more. The first is from Sony Group (SONY) CFO Hiroki Totoki, who said:

We continue to be unable to fully meet market demand in multiple categories due to severe limitations on the supply of components. We expect this situation to continue to impact us in the fourth quarter ending March 31.

And Advanced Micro Devices (AMD) CEO Lisa Su expressed this:

We have been in a mode of “demand is larger than supply,” although we made a lot of progress through 2021. And I expect to make more progress. Really, incremental capacity will come online through 2022, especially in the second half… But we’re definitely working on getting more supply as we go through the year, and I think you should see it loosen up a bit.

On that last one, I’m not sure whether to put more weight on that more optimistic insider semiconductor chip outlook… or Commerce Secretary Gina Raimondo’s more cautionary statements on Friday:

We didn’t get in this mess overnight, and we’re not going to get out overnight. This has been a problem decades in the making. There has been a slow deterioration of our manufacturing base in America over decades. And we need to start now to rebuild.

The supply chain as-is, she says, is “fragile,” with demand up almost 20% over 2019 and chip inventory plummeting from 40 days to five or less.

There’s no such cause for concern, it seems, about Manhattan real estate though. As CNN reports, “Manhattan real estate is back and… booming.” Prices last year were close to record highs, while sales were hitting levels they haven’t seen in three decades or more.

Some are saying New York City is officially back as a result.

The World According to REITs

We surprisingly only have one REIT update to report today, as per The Daily REITBeat. So I’m going to include this week’s earnings release schedule along with that solitary announcement.

We already mentioned that Simon Property Group is reporting today, but so are Brixmor Property Group (BRX) and Piedmont Office Realty Trust (PDM). Then, on Tuesday, we’ll see:

American Assets Trust (AAT)
Douglas Emmett (DEI)
EastGroup Properties (EGP)
Highwoods Properties (HIW)
Healthpeak Properties (PEAK)
UDR (UDR).

Between pre-market and post-market reporting, Wednesday’s lineup looks like this:

National Retail Properties (NNN)
SITE Centers (SITC)
Apartment Income REIT (AIRC)
Equity Commonwealth (EQC)
First Industrial Realty Trust (FR)
Rexford Industrial Realty (REXR).

And Thursday will highlight:

Armada Hoffler Properties (AHH)
Kimco Realty (KIM)
Macerich (MAC)
CatchMark Timber Trust (CTT)
Federal Realty Investment Trust (FRT)
Corporate Office Properties Trust (OFC)
Alpine Income Property Trust (PINE)
Regency Centers (REG).

Finally, on Friday, we’ve got W. P. Carey (WPC).

As for right this moment, we know that S&P affirmed Outfront Media’s (OUT) B+ issuer credit rating. Plus, it revised its outlook from negative to positive. So congratulations to that REIT!

The news didn’t land it on Friday’s top movers, but it did still bump up $0.13, or 0.54% – which could be a lot more sustainable than some of the action we see below.

(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: United Parcel Service

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

Controversial Companies Report This Week

Brad Thomas

467 postsFebruary 7, 2022

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