iREIT Daily

Let’s Make 2022 a Truly Valuable New Year

Brad Thomas

467 postsJanuary 3, 2022

First and foremost, Happy New Year! I very much mean that despite these next few lines….

In many ways, 2022 is off to a rough start since 2021’s issues haven’t exactly evaporated in the fireworks’ glow. Just look at the air travel situation, where thousands of flights were completely canceled on Sunday alone.

According to FlightAware, the final tally was over 2,100 on top of the 2,700 no-flies on Saturday. The situation prompted an FAA spokeswoman to tell Fox Business that:

Weather and heavy seasonal traffic are likely to result in some travel delays in the coming days. Like the rest of the U.S. population, an increased number of FAA employees have tested positive for Covid-19. To maintain safety, traffic volume at some facilities could be reduced, which might result in delays during busy periods.

“Some travel delays”?

“Could be reduced”?

“Might result in delays”?

Way to underexaggerate!

Meanwhile, there’s that same-old saga trickling out of China about Evergrande. It might not make the news every day or even every week like it used to.

But it’s still very much there, as evidenced by Bloomberg’s report out earlier this morning:

Chinese developer shares dropped following local media reports that China Evergrande Group has been ordered to tear down apartment blocks in a development in Hainan province. Evergrande halted trading in its shares…
The Hainan news underscored investor concern that policy makers are unlikely to dramatically ease their crackdown on indebted property companies like Evergrande even as they take steps to ensure stronger developers retain access to funding. “Even though the Hainan project isn’t a significant one in its country-wide strategy, it will have a big impact on confidence,” said Kenny Ng, strategist at Everbright Sun Hung Kai Co.

So where does that negative news leave us?

More Non-REIT News

We have two completely non-contradictory realities to operate within as 2022 kicks off.

On the one hand, the economy is not healthy. Yes, European and U.S. stocks are up this morning. But they’re not necessarily connected with the economy in this mid-pandemic era.

Billionaires and big businesses are growing their wealth immensely right now. But the middle class isn’t necessarily reaping the rewards of that.

Not unless they know how to handle the system.

That’s the other reality we’re facing this January 3, 2022. And it’s a much more optimistic one.

Little-guy traders have two main disadvantages, the first being that they have less money to work with. The second is that they have less information to work with. Therefore, they’re far more prone to follow the wrong crowd at the wrong moment.

They’re motivated by the day-to-day instead of the kind of long-term goals that can benefit everyone, from average Joe to Warren Buffett.

For instance, there’s the news that Tesla (TSLA) delivered 936,000 cars last year, with 308,600 sold last quarter alone. So buy, buy, buy!

Right?

Except that, Barron’s reports that “Tesla has recalled hundreds of thousands of Model 3 and Model S cars over trunk issues”… sloppy work that calls into question its manufacturing details. So sell, sell, sell!

Right?

That kind of often contradictory information overload is why I do my best here to provide you with daily updates – AND assurances about the big picture. A big picture that, incidentally, still shows the real estate investment trust (REIT) sector being a great place to make portfolio-growing, retirement-strengthening amounts of money.

Let’s stay safe out there, but let’s also stay sane.

We should never forget that everything is an ultimate risk. Or that some risks are worth taking while others are not.

The World According to REITs

Look, the vast majority of our portfolio picks last year gained by December’s close. Yet each one of them had their bad days as well as their good days.

Most stocks don’t go down every single day, after all. And no stocks go up completely consistently. There are always going to be bouts of optimism for sucker shares and profit-taking or even discouragement surrounding stellar ones.

That’s why it’s so very interesting to contrast and compare the following Daily REITBeat charts below. They show Friday’s REIT winners and losers, the fourth quarter’s, and the full-year 2021’s, respectively.

As you look them over, notice how there’s a lot more consistency in the losers across those timeframes than with the winners. It’s painful to see how much damage the wrong investment assets can make.

(Source: The Daily REITBeat)

And…

(Source: The Daily REITBeat)

And…

(Source: The Daily REITBeat)

This brings me right back to the point I ended the last segment with:

Let’s stay safe out there, but let’s also stay sane – knowing that everything is an ultimate risk. But that some risks are worth taking while others are not.

With that in mind, here are today’s three individual REIT updates for January 3, 2022:

Rexford Industrial Realty (REXR) acquired eight industrial properties across California – mostly in the Los Angeles area – for $270 million. It therefore purchased $1.9 billion of industrial properties for the full year.
LXP Industrial Trust (LXP) recapitalized a 22-property special-purpose, mainly manufacturing-focused industrial portfolio. It did that through a sale to a new joint venture, which it will keep a 20% interest in.
City Office REIT (CIO) completed its acquisition of a two-building office complex in Raleigh, North Carolina for $330 million, outside of closing costs.

That’s the news for today! Let’s put it all in its proper place as we get officially started in on the new year…

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.

The White House Is Talking About It Too

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’s Make 2022 a Truly Valuable New Year

Brad Thomas

467 postsJanuary 3, 2022

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Let’s Make 2022 a Truly Valuable New Year

467 postsJanuary 3, 2022

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