Koch Becomes A Ladder Shareholder

Brad Thomas

467 postsDecember 30, 2020

Real Estate Predictions for 2021.” That was the first part of a Chicago Tribune headline the other day, echoing what every other real estate investor is considering right now.

For that matter, everyone is considering what 2021 is going to hold in general. Will it be better than 2020? Will it be worse?

Canadians, at least, are certain of one thing: that home prices will keep going right up. Bloomberg reports that optimism on that topic is far, far above where it was this time last year… which is a boon for sellers and a continuing headache for anyone looking to buy. Citizens of that chilly country have seen their fair share of bidding wars these past 10 months.

And then some.

So has the U.S. For October specifically, home prices grew faster than they have in more than six years. Standard & Poor’s reported the other day that its CoreLogic Case-Shiller National Home Price Index rose 8.4% year-over-year for the month.

How long can that kind of fast-paced advancement last? Will the vaccines mean that people are no longer so hot and bothered to get out of their city dwellings? Could the urban exodus be nearing its end?

The answer to those questions might very well lie in whether local and state restrictions continue or not. Right now, a lawsuit has been filed against New York Governor Andrew Cuomo to protest the restraints that restaurants are working under. The defendants point to information just released by his administration that show eateries accounted for just 1.43% of Covid-19 cases from September through November.

And as former CKE Restaurants CEO Andrew Puzder said yesterday, the only way we’re going to save small businesses is “to find a way to let them stay open.” Otherwise, it only makes sense that they’re either going to be closing for good or moving elsewhere… either of which will have major effects on real estate – residential and commercial alike.

Speaking of the latter though, I have to mention this here instead of down below in the REITBeat segment. It’s too big not to include in the intro.

An affiliate of Koch Real Estate Investments made a $32 million, long-term investment in mREIT Ladder Capital (LADR) on Tuesday. As the AP writes:

“Koch exercised its option to do so under the strategic financing agreement reached in April 2020, in which Koch agreed to provide the company with $206.4 million in senior secured financing to fund transitional and land loans…

“Jake Francis, president of Koch Real Estate Investments, said, ‘We respect Ladder’s careful management and credit culture. During the Covid-19 pandemic, Ladder management kept its word, taking the right steps to protect Ladder’s shareholders and [positioning] the company to capitalize on the expected dislocation in the commercial real estate sector over the next few years. Exercising our investment option in Ladder was an easy choice.’”

Considering my article about the mREIT (over on Seeking Alpha) mere days ago, I couldn’t agree more. Keep in mind that the deal was orchestrated when LADR was trading at $6 per share, and there is a three-year lockup.

I know that many of my iREIT on Alpha members are thrilled they followed our lead…

As I told them yesterday, we’re out of it for The Cash Is King Portfolio specifically, since “my lessons from playing blackjack” tell me that it “never hurts to walk away with a profit.” And “a big profit at that!”

(Koyfin)

With that said, I’m still holding onto Ladder elsewhere in the iREIT universe. It’s clearly worth something still, even if it’s no longer right for Cash Is King.

The World According to Real Estate

There was plenty of news that came out yesterday, as REITs across the board look to end 2020 on a strong note.

CTO Realty Growth (CTO), for one, was pleased with its sale of an Outback Steakhouse property in Austin, Texas, for about $3.4 million. For the full year, it added, it purchased four rentable facilities for approximately $185 million and sold a total of 12 at around $86.5 million. The latter figure topped its previously provided disposition guidance of $85 million by a pretty decent penny.

Less pretty for Taubman Centers (TCO) but still profitable and very much welcome was Simon Property Group crossing the last T and dotting the last I on its 80% acquisition of the smaller mall REIT. Simon now holds all of Taubman’s common stock for $43 per share.

And Paramount Group (PGRE) officially parted ways with 1899 Pennsylvania Avenue in Washington D.C., a 190,955 square foot trophy office building. While it had to cut its original asking price by 10% down to $103 million, it is now completely out of D.C., as so desired.

The Daily REITBeat

Here’s wishing you a safe, sane, and wonderful post- and pre-holiday period.

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.

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

Koch Becomes A Ladder Shareholder

Brad Thomas

467 postsDecember 30, 2020

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Koch Becomes A Ladder Shareholder

467 postsDecember 30, 2020

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