iREIT Daily

Forget the Fed; We’ve Got Oil and “Elona Musk” to Talk About

Brad Thomas

467 postsMarch 16, 2022

Who would have thought two weeks ago that oil would be under $100 today?

Anyone who predicted this deserves some kind of prize. Maybe from Nobel.

It really didn’t make any sense considering the circumstances. Yet here we are anyway this Wednesday, March 16, 2022…

All thanks to China, it would seem.

That country’s lockdowns have even pushed the Federal Reserve’s move today out of the spotlight. Let’s face the facts: That’s quite the impressive feat.

It’s more impressive still considering the other competition out there: the ongoing war in Ukraine.

China clearly has a lot of power and influence on the world stage, just in case we didn’t already know that.

There are two stories I can easily transition to from here, but let’s start with yesterday’s Yahoo Finance piece about “Supply Chains: ‘Complete Chaos for the Shipping Industry’ Amid Russia-Ukraine War and China Lockdowns.”

(Again, the Fed doesn’t factor in.)

It should come as no surprise that Russia is retaliating against increasing public and private sanctions against it. Putin just signed a law, for instance, allowing domestic airlines to hold onto planes they’re renting from foreign companies. And something similar seems to be playing out with other modes of transportation.

As Yahoo reports, “Shipping giants including Switzerland-based MSC, Denmark’s Maersk, and France’s CMA CGM announced this month that they would halt cargo bookings to and from Russia until further notice…” But then there’s this paragraph:

“We have about 50,000 of our containers in Russia today,” Maersk Chief Executive Soren Skou said. ‘Most of them are empty. They are our property. We need them, and we are very reluctant to leave them in Russia. For this reason, we still have some port calls in Russia.

That’s not just a company or even industry-specific problem. It’s a global one.

More Non-REIT News to Know About

As the article goes on to note, there are cargo ships stuck everywhere right now – with an intense emphasis on the word “stuck.” Russian ships are blocked from the U.K., E.U., and Canada, while “more than 100 ships and their crews are stranded at Ukrainian ports.”

Elisabeth Braw, a senior fellow at the American Enterprise Institute, told Yahoo Finance Live:

All of that is… leaving all these vessels traveling around the world with cargo already on board, with cred already on board, leaving them in complete no man’s land. Where are they supposed to go with their cargo? They can’t deliver it. They can’t pick up the new cargo… [This is] complete chaos for the shipping industry.

Amidst this upheaval, Fox Business reports that “Europe burned 51% more coal for electricity in the first week of March compared to a year earlier.” Obviously, that’s Russia related.

Even as commodity prices rise in general, it reads, “European utilities have been getting increasingly reliant on coal.”

In even more bizarre news, I’m going to indulge in some business gossip by pointing out how Tesla (TSLA) founder Elon Musk challenged Putin to a duel the other day for Ukraine. On Twitter, of course.

Because where else would you issue such a challenge in the 21st century?

Naturally, there was a response, including from Chechen leader and Putin ally Ramzan Kadyrov, who called him “effeminate” and “Elona.”

So what did the world’s richest and perhaps most eccentric man do in response? He changed his name on Twitter to “Elona Musk” while trash-talking back as good as he got.

Once again, I have to conclude that man is nothing short of fascinating.

The World According to REITs

One more thing about “Elona Musk,” and one that’s actually relevant to real estate investment trusts (REITs)… He also took to Twitter this week to say:

… for those looking for advice from this thread, it is generally better to own physical things like a home or stock in companies you think make good products, than dollars when inflation is high.
I still own & won’t sell my Bitcoin, Ethereum or Doge fwiw.

“FWIW” stands for “for what it’s worth” in cool-kid language… which I incidentally had to look up.

As the richest man in the world, Elona can handle that risk. As something far from it though, I’d recommend focusing on the first part of his tweet. Namely with REITs.

This could easily include those of the office variety – if they’re quality companies trading at worthwhile valuations – considering Yahoo Finance’s assertion that “a lot of people are spending big bucks to look good to return to the office.”

The reopening is really here, everybody, and the REIT sector is ready for them. That makes for one more reason to stay up to date on what’s going on there, like how:

UMH Properties (UMH) added about 1,100 homes to its Fannie Mae credit facility for total proceeds of around $25.6 million. The remaining term of its existing facility matures in 2030 at a 4.25% fixed rate. The proceeds are going toward further asset investments.
AvalonBay Communities (AVB) launched a $500 million U.S. unsecured commercial paper note program. It plans to use the proceeds for general corporate purposes.
Host Hotels & Resorts (HST) named Deanne Brand as senior VP of strategy and analytics, and treasurer. Meanwhile, Padmanabh Yardi will become senior VP of information technology.

And last but not least, we’ve got this…

(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.

“China’s Intervention Sends Stocks Soaring”

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

Forget the Fed; We’ve Got Oil and “Elona Musk” to Talk About

Brad Thomas

467 postsMarch 16, 2022

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Forget the Fed; We’ve Got Oil and “Elona Musk” to Talk About

467 postsMarch 16, 2022

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