iREIT Daily

Let Them Eat Cake! (And 2 More Mergers Make the News)

Brad Thomas

467 postsNovember 15, 2021

MSNBC anchor Stephanie Ruhle of Stephanie Ruhle Reports has a new nickname – and it’s not very flattering.

Stephanie Antoinette.

On Sunday, she said that, “The dirty little secret here… [is that] while nobody likes to pay more, on average, we have the money to do so. Household savings hit a record high over the pandemic. We didn’t really have anywhere to go out and spend.”

Essentially then, “Let them eat cake.”

Some say she’s speaking from an elitist bubble much like the ill-fated former queen of France she’s being accused of channeling. But who knows. Maybe she’s right. Maybe most of us can afford the increased costs.

Even so, it does seem to be really rough on the lower income classes among us. Not to mention that more and more sources are saying that we ain’t seen nothing yet.

Euro Pacific Capital Chief Economist and Global Strategist Peter Schiff just weighed in on the subject. He believes “inflation is going to help push the economy into recession.”

“It’s a bunch of nonsense what everyone is saying about how inflation is a good problem, and it’s just a consequence of our strong economy. A strong economy doesn’t produce inflation. It actually produces the reverse because a strong economy means that your economy is productive. You’re producing more goods and services, and you’re growing the supply. We have shortages because we have a weak economy.”

Meanwhile, Yahoo Finance prominently featured its Morning Brief this morning, where anchor and Editor-at-Large Brian Sozzi pointed to a $72.30 18-pound turkey he found at a Stop & Shop. Tweeting about it the other day, he added a single word to the description:

“Inflation?”

Your response, I imagine, is supposed to be, “You think!?!”

More Non-REIT News

Now, apparently, as some followers informed Sozzi, the turkey brand in question isn’t the cheapest. Nonetheless, he insisted he doesn’t care if the purchase comes with a one-day Ferrari rental.

“This bird is just the latest example of the rapid inflationary environment we are entering. Note: We’re ENTERING one, not necessarily already in it.
“The price increases by corporate America are about to rain down on all of us in a way many have not seen before in our lifetimes… Gas prices are breaking through $5 a gallon in many parts of the country, as CNN anchor Wolf Blitzer tweeted. One lodging CEO told me last week hourly wages are soaring 15% to 20%. And even then, they are having trouble securing talent (notably in housekeeping). Another retail CEO told me… their prices are going up more than 10% this holiday season, mostly due to supply chain bottlenecks.”

To that, he asserts, “Someone has to bear the brunt of this inflation, and it ain’t gonna be corporate America.”

In other words, get ready to see your various bills go up even more as we finish up 2021 and enter 2022. Whether you can afford it or not.

Certainly, Goya CEO Robert Unanue told Fox Business he has “no choice” but to raise prices – sometimes up to 10% – to cover costs. And even Treasury Secretary Janet Yellen told CBS’ Face the Nation that she can’t really be certain when (or if) inflation will actually end.

Despite recent assurances that we’ll see relief by mid-2022, her latest statement is that, “If we want to get inflation down, I think continuing to make progress against the pandemic is the most important thing we can do. I think it’s… important to realize that the cause of this inflation is the pandemic.”

The World According to REITs

Normally, this late in earnings season, I might lead with whatever real estate investment trust (REIT) stragglers were reporting.

But not today. Today, Monmouth Real Estate Investment’s (MNR) quarterly statement pales in comparison to the two mergers just announced.

Yup, that’s right. Two!

I believe it was sometime last week when I mentioned how I expected more mergers on the way. I can’t remember the exact day, but clearly our REIT companies remain very interested in consolidating. Hence why:

American Tower (AMT) signed a definitive agreement to acquire CoreSite Realty (COR) for $170 per share.
CyrusOne (CONE) will be bought up by KKR & Co. (KKR) and Global Infrastructure Partners for $90.50 per share.

Yet I’m still not predicting REITs are done just yet with this kind of action any more than the kinds of activity summarized below:

Monmouth reported adjusted funds from operations (AFFO) of $0.20 per share. During its fourth quarter, it also increased its gross leasable area by 7% to 24.9 million square feet. Occupancy rose 30 basis points to 99.7%, and the company re-signed all 10 leases set to expire in those three months. Plus, its annualized average base rent per occupied square foot is now 4% higher (year-over-year) at $6.61.
Orion Office REIT (ONL) now officially exists, as Realty Income (O) successfully spun it off to trade on the New York Stock Exchange.
Alexander & Baldwin (ALEX) says it completed its sale of the Kukui’ula residential development, which is located on the Hawaiian island of Kauai.

That’s only five of the announcements The Daily REITBeat gathered for us this morning though. There are another three Intelligent REIT Daily readers got this morning… a community you can join for free today.

Last but not least, I’m including two charts below, with the first showing you just how volatile of a market we’re working with right now – for better and for worse.

(The Daily REITBeat)

Hold onto your hats, my fellow investors. This year isn’t over yet!

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.

Dividend Growth Stock of the Week: Atmos Energy Corporation

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

Let Them Eat Cake! (And 2 More Mergers Make the News)

Brad Thomas

467 postsNovember 15, 2021

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Let Them Eat Cake! (And 2 More Mergers Make the News)

467 postsNovember 15, 2021

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