iREIT Daily

Corrections, Christmas, and Companies Split Apart

Brad Thomas

467 postsNovember 12, 2021

In yesterday’s blog, a reader pointed out that I’d guessed incorrectly about how exactly China Evergrande is staying afloat. While I was right about government influence being involved, I was wrong about how it’s being applied.

Djreef1966 quoted Bloomberg as reporting:

In September, missed payments on wealth products sold by Evergrande to retail investors sparked protests in cities across China, putting more pressure on Beijing to find a solution and avoid further unrest. The government, concerned about preserving financial stability, has pushed the developer to meet its many obligations and recently asked its billionaire founder, Hui Ka Yan, to use his personal wealth to repay debt.

I’m more than willing to acknowledge when I’ve been accurately “told,” so thank you to Djreef1966.

This next part isn’t meant to save face then. It just so happened to come out at the same time. But it turns out I was correct about Disney’s (DIS) less-than-ideal situation.

(As I’m sure some of you will point out, it wasn’t an impossible puzzle to solve.)

The mixed markets yesterday were thanks in part to the Mickey Mouse company. It fell short on top-line, bottom-line, and Disney+ subscriber expectations alike, sending the stock down 7.07%.

Nobody really believes it can’t recover from here, naturally. This is Disney we’re talking about.

All the same, the company might want to start thinking about implementing some different approaches to handling current trends.

Speaking of trends, Tesla (TSLA) competitor Rivian (RIVN) had a smashing success of an IPO on Wednesday. It was such a phenomenal debut that it caught the skeptical attention of multiple analysts, who point out that Rivian didn’t sell a single vehicle until this year.

Yet it’s been given a $116 billion market value.

How does that add up?

Christmas Can Come Too Soon This Year

Math really is the problem these days. So we’ll see if Rivian and Tesla fare any better than their much more established competitors, Ford (F) and General Motors (GM), in Q4.

Reuters reports how, “automakers and dealers are on track to spend less on advertising this holiday season” than usual. “A year of supply chain and production disruptions have left auto dealerships with roughly one-third of the normal inventory levels,” it writes.

This has given “sellers little reason to shell out for splashy holiday ads.”

Departments stores like Macy’s (M) and Nordstrom (JWN) are shifting spending strategies as well, or simply cutting them altogether. And this at a time when Johns Hopkins University Economics Professor Steve Hanke told CNN’s Outfront that:

Inflation is always a monetary phenomenon. It’s how much money the Federal Reserve and the commercial banking system is creating. And they’ve got so much money excess in the monetary bathtub right now that no matter what they do – if they completely cut the spigot off and didn’t put anything in – we’d still have a big inflation problem that will last through 2024.

That’s one expert opinion, of course. Other sources are saying the exact opposite.

But it’s worth noting nonetheless considering how transitory inflation has been so far.

Oh, and on a completely unrelated note… Johnson & Johnson (JNJ) announced this morning that it will be breaking up into two companies, with its pharmaceuticals separating from its store-shelf products.

Considering how General Electric (GE) declared similar plans earlier this week, I’m curious to see if this is the start of a larger trend.

The World According to REITs

That doesn’t seem to be the trend in the real estate investment trust (REIT) space, of course. Not at all.

This year has been one for mergers and even megamergers, and next year could see more where that came from.

Don’t get too excited with those statements though. I don’t have any such thing to report today.

Instead, we’ve got:

New York City REIT (NYC) reported Q3 results, with revenue up $0.09 million to $15.8 million quarter-over-quarter. The company did post a net loss attributable to common shareholders of $11.1 million. And cash net operating income was down as well to $5.7 million from $6 million in Q2. However, funds from operations (FFO) came in at -$2.9 million instead of the -$4 million in the three-month-prior period. And NYC was able to collect 92% of rent due during that time frame.
Presidio Property Trust (SQFT), for its part, collected 96% of rent due. But it also recorded losses, including in net income. That was -$1.4 million, or -$0.13 per share, which was still better than last year’s -$1.7 million, or -$0.20, showing. Yet Senior VP of Asset Management Gary Katz made sure to point out how the company continues “to see solid leasing demand in the markets where our properties are located.”
Plymouth Industrial REIT (PLYM) bought two industrial properties amounting to 1.1 million square feet in the St. Louis area. The buildings cost $75.1 million together, widening its reach in that region.

And so the REIT show rolls on.

(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.

Don’t Let High Yields On Cost Fool You

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

Corrections, Christmas, and Companies Split Apart

Brad Thomas

467 postsNovember 12, 2021

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467 postsNovember 12, 2021

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