iREIT Daily

Few Feel Optimistic About the Future

Brad Thomas

467 postsJanuary 11, 2022

The markets managed to recover from the worst of the worst yesterday, with the Nasdaq even ending in the green. That was quite the miracle considering how far it dropped right at the opening.

All the major indices did, for that matter. Yet the S&P 500 finished just 6.74 points (0.14%) down, and the Nasdaq was up 6.93 points up, or 0.05%.

The Dow, admittedly, did drop another 162.79 points, or 0.45%. But, again, that was pretty favorable considering how it lost almost 600 points from Friday’s close a few hours in.

Today, everything might end optimistically on JPMorgan (JPM) CEO Jamie Dimon’s reiterated optimism about the U.S. economy. He told Fox Business’ Maria Bartiromo that he sees:

… the table is set for a very strong economy. That consumer has a lot of money, businesses have a lot of money, and they are spending it. Confidence levels are going up. Jobs are plentiful. Wages are going up. It’s pretty strong.

Or everything might end down on the World Economic Forum’s global warning that:

Only 16% of respondents feel positive and optimistic about the outlook for the world. And just 11% believe the global recovery will accelerate. Most respondents instead expect the next three years to be characterized by either consistent volatility and multiple surprises or fractured trajectories that will separate relative winners and losers.

Certainly, at least in the U.S., there are some jarring realities some consumers are having to face. Twitter is full of pictures involving bare or sparsely stocked grocery stores.

Virginia seems to be especially hard hit. But people also posted from places like Atlanta, Georgia; Rockville, Maryland; and Semi Valley, California.

And supermarket chain Gristedes CEO John Catsimatidis warned Fox News’ Todd Piro that it could get worse from here.

More Non-REIT News

When Piro noted how he couldn’t “find meat or eggs in multiple stores” this week, here was Catsimatidis’ response:

Well, there’s a danger of [this being the norm for a few months]. As Omicron grows over the next two to six weeks, it is taking its toll at different levels of the supply chain, whether it’s the warehouses, whether it’s the selectors, the drivers, the loaders – and as they call in sick, there are interruptions in the system.

Other people aren’t buying that though. They’re blaming continued supply chain issues that have carried over from 2021.

Admittedly, that’s been a boon for many local companies. With national chains rendered so unreliable in so many areas, many a mom-and-pop supplier is in higher demand. So it’s not too surprising that U.S. small business confidence rose a little last month.

Just by 0.5 points, but that’s still not a dip.

Incidentally, 22% of small business owners said inflation was the biggest issue they were dealing with. That’s up from 18% in November.

Yet they’re not the only ones worried about it. The Associated Press released a report yesterday asking, “Question for Fed: Has It Waited Too Long to Fight Inflation?” Right beneath that headline reads:

With inflation surging, unemployment falling and wages rising, some economists are warning that the Federal Reserve may have waited too long to reverse its ultra-low-rate policies – a delay that could put the economy at heightened risk.

It went on with, “On Wednesday, the government is expected to report that consumer prices jumped 7.1% over the past 12 months, which would be the steepest such increase in decades.”

You know how I feel about economic predictions these days. Still, I think it’s pretty safe to say the cost of living has hardly gone down.

The World According to REITs

Here are the last two stories I wanted to cover today before reporting our standard three real estate investment trust (REIT) updates…

Finra – the Financial Industry Regulatory Authority – ruled in favor of Robinhood user Jose Batista, a 27-year-old truck driver, over his meme-stock dispute from last January. The company will now have to pay him close to $30,000 for restricting his trades.

Being the first such decision, Robinhood could be in for a lot more pain from its “peasant” base – who now see it much more aligned with the likes of “Prince John.”

Also, what was I saying late last year (or was it early last week?) about car companies’ electric vehicle promises? More people are beginning to question whether they have the infrastructure to implement such a sudden switch… or the consumer interest to back it.

As for REITs…

National Health Investors (NHI) says it sold three senior living properties for $23.7 million last month. For the full year, it disposed of 19 such assets for $195 million. Also worth noting is how it collected 79.49% of December’s rent and 81.9% for the quarter.
STAG Industrial (STAG) expects current board chairman and CEO Benjamin S. Butcher to transition into its executive chairman of the board on July 1. Meanwhile, current President William R. Crooker will take over as CEO.
CoreCivic (CXW) received a new contract with Arizona’s Department of Corrections, Rehabilitation & Reentry. The company’s 3,060-bed La Palma Correctional Center in Eloy will host up to 2,706 male inmates going forward.

Apparently, CoreCivic isn’t crushed yet. While I’m not going to recommend it, I did want to point out that particular new story all the same… even as its fellow prison REIT fell 3.86% yesterday.

(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.

Powell Gets Pummeled in Probably Pointless Appearance

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

Few Feel Optimistic About the Future

Brad Thomas

467 postsJanuary 11, 2022

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Few Feel Optimistic About the Future

467 postsJanuary 11, 2022

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