iREIT Daily

More to Talk About Then Expected

Brad Thomas

467 postsDecember 31, 2021

I really wasn’t planning to write about the news at all today. This was going to be a nice, brief, but heartfelt post wishing you the absolute best in the new year.

But I can’t make myself set aside the news I’m seeing today, particularly the official CDC warning issued yesterday. Remember what I wrote yesterday about the cruise lines?

If not, here it is:

“Moving even further into the leisure category, the otherwise recovering cruise industry could be beached again. The CDC is currently looking into 86 cruise ships over the Covid cases they reported.
“… they have to disclose whenever 0.10% of passengers test positive or even one crewmember does.
“So far, major names like Carnival (CCL) and Norwegian (NCLH) have bent over backwards to comply with CDC mandates. All adults – and many minors – for example, are required to be vaccinated on these cruises.
“Yet Senator Richard Blumenthal said yesterday that all such excursions should be docked altogether.
“We’ll see if that call is picked up by anyone else.”

When I wrote that, I didn’t expect immediate news. Really, I figured that if anything came of it at all, it would be weeks – if not months – before I had reason to write about it again. Instead, the CDC came out hours later to say this:

“The virus that causes Covid-19 spreads easily between people in close quarters on board ships. And the chance of getting Covid-19 on cruise ships is very high, even if you are fully vaccinated and have received a Covid-19 vaccine booster dose.”

That’s certainly not the note the industry wanted to end 2021 on. Of that, I’m very certain.

More Non-REIT News

As far as I can tell, the CDC’s warning isn’t a mandate since it added, “If you travel on a cruise ship, make sure you are fully vaccinated before travel and get a Covid-19 vaccine booster dose if you are eligible.”

But it could still do a lot of damage to cruise lines that already took on so much water during the pandemic.

Then again, who knows? Maybe this will have no effect whatsoever on bookings. As more and more economic analysts are admitting, people just want to get on with their lives again.

So do businesses, as evidenced by the immense amount of merger and acquisition (M&A) activity that took place in 2021. Yes, that was also fueled by cheap financing… and knowing it would only last so long.

Even so, their eagerness for action was extremely obvious these last 12 months. Fox Business writes:

“Global M&A volumes topped $5 trillion for the first time ever, comfortably eclipsing the previous record of $4.55 trillion set in 2007, Dealogic data showed. The overall value of M&A stood at $5.8 trillion in 2021, up 64% from a year earlier, according to Refinitiv.”

As real estate investment trust (REIT) investors, we saw that in action – and then some! Just yesterday’s updates alone showed companies like Four Corners Property Trust (FCPT) going on intense spending sprees to close out the year.

Another headline I was struck by this morning was Yahoo! Finance’s latest Morning Brief. It’s not like I haven’t talked about the booming housing market in here and my various publications before.

I have. Perhaps to the point where readers are sick of hearing of it. In which case, I apologize for bringing it up again. And the same caveat goes for the apartment and home rental market.

But…

The World According to REITs

I’m going to point it out one more time in 2021 (and probably a few more times come 2022) anyway. As Yahoo published:

“‘The biggest concern and takeaway from 2021 was the lack of [home] inventory,’ Weichart Companies’ James Weichert Jr. told Yahoo Finance Live this week. ‘You have a highly, highly competitive market, and real estate transactions… are inherently hectic.’
“However, that obscures what’s happening in a rental market where prices have been on a tear, emerging as one of the biggest sources of price pressure in 2021.”

Remember when everyone was certain apartment buildings were going to collapse financially speaking?

And look how wrong they were!

So let’s enter the new year with a renewed pledge to pay attention to short-term emotions… but only act on long-term fundamentals. If we do, I think we’ll see a very successful 2022.

Last but not least, I misspoke yesterday about the markets being closed today. They’re only shutting down early.

As such, I’ve still got Daily REITBeat data to report, including more activity from Four Corners, which acquired:

A Caliber Collision property in Pennsylvania for $3 million, with about eight years left to its contract
A Red Lobster property in New York for $1.9 million, also with eight years left to its contract
A dual-tenant property in Florida for $4.5 million leased to DaVita Kidney Care and Nephrology Associates, with a weighted average six years left to their contracts
A Chick-fil-A property in Connecticut for $3.5 million with about 15 years left to its contract.

And CTO Realty Growth (CTO) purchased a grocery-anchored facility for $34 million in an Atlanta, Georgia, submarket. It also divested itself of a vacant six-acre plot of land in Daytona Beach, Florida, for $6.3 million.

Then we’ve got yesterday’s price actions to point out:

(Source: The Daily REITBeat)

And an official “Happy New Year’s Eve” to all you at Wide Moat. Here’s wishing you a wonderful countdown, and I’ll see you all in 2022!

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.

Don’t Be A Lemming. You’re Better Than That.

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

More to Talk About Then Expected

Brad Thomas

467 postsDecember 31, 2021

Featured Articles

The Great Housing Market Migration Is VERY Interesting

Let Dividends Help You Deal With Disappointment In The Stock Market

Amazon Wants to Ask What Ails You

Wall Street’s Workforce Crisis Should Be Taken Seriously

Santa Claus Has Left the Building

More to Talk About Then Expected

467 postsDecember 31, 2021

REIT Mutual Funds

REIT ETFs

Not All Dividends Are the Same