iREIT Daily

Even When It Doesn’t Feel Like REIT Paradise at All…

Brad Thomas

467 postsFebruary 23, 2022

It wasn’t a news headline that most captured my attention this morning. It was an opinion piece from MarketWatch that read:

“Waiting for the Perfect Moment May Not Be the Best Strategy”: 3 Things Investors Should Do Right Now as Ukraine-Russia Crisis Escalates.

While those first 11 words alone were enough for me, I clicked through anyway, opening up to paragraphs like:

It’s clear that the recent spate of market weakness has unsettled many investors. Among the most popular searches on Google in recent days have been questions like, “Is the market going to crash?”

And:

Financial experts advise staying cool and not getting caught up in the international diplomatic drama. As Pepperstone’s head of research, Chris Weston, wrote, “Trading in a headline-driven market is not for everyone. It requires a dedication to being in front of the screens, an understanding of what is noise and what is signal, and an ability to keep emotions in check.”

That’s similar to what I was going to tell you too, except I would and will take it even further. My take is that “trading in a headline-driven market” is almost certainly one of the most foolish things you can do.

In other words, it’s for almost no one. And before you think yourself the exception, ask yourself these questions:

Do I have the time to read not just past multiple headlines but through numerous articles as well?
Do I have not just the learning but also the wisdom to distinguish between “noise” and “signal”?
Can I stay consistently sane under that onslaught of information, some of which is deliberately meant to induce panic?

If you can’t answer “yes” to all three, then stay away from market timing. It’s as simple as that.

More Non-REIT News to Know About

So what’s the alternative then? Just stick with your stocks and other investments while they fall yet another day in a row?

In some cases, the answer is yes.

If the company’s fundamentals remain strong, its prospects remain solid, and its price isn’t at risk of completely crashing – as in, it’s only dipping 5%, 10% or, at most, 25% from the high it’s hit since you bought in – then it’s very likely worth holding onto. There are no guarantees, of course…

But that rule of thumb has led to much more profitable outcomes than jumping in and out of the markets.

So stay steady, even while you read scary stories about such things as:

The Richmond Fed’s Survey of Manufacturing Activity for February showed a drop in shipments and new orders, with continuing supply chain disruptions for the central Atlantic region.
The larger Fed says that small businesses are still struggling. As of November, 63% were working with revenues below pre-pandemic levels. And 43% were operating with smaller staff sizes – whether because they had to cut jobs to save money or they can’t find anyone to work for them.
The S&P 500 fell into an official correction yesterday, down 10% below its January 3 record close. In which case, it joins the Nasdaq.

That bad news is all good to know, mind you. So is how oil prices will probably head higher from here thanks to ongoing Russia-Ukraine actions and reactions.

We don’t want to be walking around thinking everything is fine. They’re not.

But the kinds of companies we should be holding know how to survive such storms. They even often come out ahead after everything is said and done.

The World According to REITs

Here’s a question for you…

How many real estate investment trust (REIT) earnings reports are included in this morning’s Daily REITBeat?

If you guessed 17, congratulations! You’re spot on.

There’s only so much I can fit here, however. But those already subscribed to Intelligent REIT Daily – which is completely free – get to see three of those on top of what’s included below:

Agree Realty (ADC) announced Q4 funds from operations of $0.92 per share. It purchased 20 ground leases during that span for about $77.6 million, and it sold five properties for around $9.6 million. Leases executed – new, extended, or options – amounted to 256,000 square feet. And the portfolio ended the year 99.5% leased with a weighted-average remaining term of approximately 9.3 years.
EPR Properties (EPR) set 2022 adjusted FFO guidance at $4.30-$4.50 per share and recorded $1.11 in AFFO for Q4. Cash rent collections for the quarter were around 97%, which was at the high end of expectations. And it spent $25.6 million on investments, or $133.5 million for the full year. The REIT ended 2021 with $288 million cash on hand and no borrowings on its $1 billion unsecured revolving credit facility.
Realty Income (O) set 2022 normalized FFO guidance at $3.88-$4.05 per share, while Q4’s figure was $0.89. It invested $2.63 billion into 401 already existent properties, those under development, and those being expanded during the quarter – not including anything Vereit related. And it raised $1.72 billion through stock sales at a weighted average price of $69.07. As of year’s end, its portfolio was 98.5% occupied.
Public Storage (PSA) expected 2022 FFO of $14.75-$15.65 per share, while Q4’s core FFO is now known to be $3.54. It acquired 106 self-storage facilities during the quarter for $2.3 billion, totaling 11.5 million net rentable square feet. And it opened two brand-new facilities as well. For the full year, same-store direct net operating income (NOI) rose 15% thanks to same-store revenue increasing 10.5%.

As for yesterday’s market action, we’ve got some of that summarized down below…

(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.

The Reality We Face as Russia Attacks Ukraine

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

Even When It Doesn’t Feel Like REIT Paradise at All…

Brad Thomas

467 postsFebruary 23, 2022

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Even When It Doesn’t Feel Like REIT Paradise at All…

467 postsFebruary 23, 2022

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