iREIT Daily

Positive Spins and Russian Realities

Brad Thomas

467 postsMarch 9, 2022

There are times when putting a positive spin on things probably won’t be well-received for obvious and understandable reasons.

That was my first (second and third) thought when I saw the Yahoo Finance headline, “Gas Prices Aren’t Really at a Record High,” not to mention its opening paragraphs:

Drivers are squirming as gas prices blast through levels last seen during the oil crunch of 2008. In July of 2008, U.S. oil prices hit $145 per barrel and gas prices peaked at $4.16, according to government data. With average gas prices now around $4.19, we seem to have set a new record high.
But those are nominal prices that don’t account for inflation. If you adjust for overall price changes since 2008, gas prices would have to hit $5.25 per gallon to be a new record high, in real terms.

If that’s meant to be comforting, I think it fails considering that every other price is up as well – some of which we’ll touch on as this blog post continues. Our wages might be higher, but so is our cost of living.

Intensely so.

Moreover, according to all reports – including direct statements from Biden – gas prices are headed higher still. ABC News tweeted the other day, complete with matching video, how:

Pres. Biden responded to a question on gas prices as he arrived in Fort Worth, Texas, saying, “They’re gonna go up.”
“Can’t do much right now. Russia’s responsible.” Abcn.ws/3sRblan.

Then again, consumers in the U.K. might have it worse. A new report out from Resolution Foundation reads:

Our preliminary estimate is that the conflict in Ukraine could push peak inflation in 2022-23 above [8%]. This could leave the typical real household income for non-pensioners [4%] – or £1,000 – lower than in 2021-22.

And it goes on from there.

More Non-REIT News

The report is quite detailed, but I’ll just highlight two sentences:

Considering the impact on petrol and energy costs alone leads us to estimate the monthly peak of inflation… could rival the [8.4%] reached in 1991 (in turn the highest inflation since 1982).
High inflation will make falling real household incomes the defining economic feature of 2022.

Now, British Transport Secretary Grant Shapps did say the country will increase its oil production to make up for the 8% Russian imports it usually relies on. That comes after both the U.K. and U.S. announced yesterday they’ll no longer be buying the Russian commodity.

Meanwhile, European Commission President Ursula von der Leyen believes its collective countries have enough liquefied natural gas (LNG) to make it through the winter – news that sent many a market up this morning.

Also up, strangely enough, is cryptocurrency right as Biden is set to approve regulations on it. Bitcoin hit $42,245 earlier this morning, a near-8.5% 24-hour rise. And Ethereum climbed 6.5%+ to $2,755.

What’s down, at least as of last month, is mom-and-pop shop sentiment, according to the National Federation of Independent Business. Its Small Business Optimism Index fell 1.4 points in February to 95.7, its lowest reading since January 2021.

Naturally, inflation was behind a good chunk of that. So were weaker earnings, supply chain issues, and labor shortages.

And let’s see if I can fit in two more news stories before we switch over to real estate investment trusts (REITs)…

First up, Coca-Cola (KO), PepsiCo (PEP), Starbucks (SBUX), and McDonald’s (MCD) are pulling out of Russia. And secondly, that country will likely be cutting off its main gas line into Germany now that the U.S. and U.K. aren’t buying anymore.

As always, we’ll see what happens from here…

The World According to REITs

A quick note on the residential-ish side of real estate, namely what Zillow economist Nicole Bachaud said about rent:

… definitely growing at a rate that’s putting a lot of pressure for budgets for renters and causing people to get stuck in this affordability problem right now.

That’s to the point where they’re looking to buy instead, adding more shoppers to an already intense sellers’ market. This has especially been pronounced in major Californian hubs as well as NYC and Chicago.

That, in turn, has led to such increased interest in Sun Belt cities that they’re seeing skyrocketing prices as well – both for renting and buying. Which naturally means commercial real estate prices are climbing too.

At the moment, admittedly, it’s pretty quiet in REIT-dom, with only two headlines to highlight from The Daily REITBeat today:

Chatham Lodging Trust (CLDT) bought the 111-room Hilton Garden Inn Destin Miramar Beach in Florida. The off-market transaction is worth $31 million.
American Assets Trust (AAT) completed its purchase of Bel-Spring 520, a 93,000 square-foot, multi-tenant office campus in Bellevue, Washington. The downtown asset – which cost it $45.5 million in cash – is 69% leased to a range of tenants with contracts at below-market rates.
Invitation Homes (INVH) promoted Greg Van Winkle from VP of investor relations to senior VP of corporate strategy and capital markets.

Like I said, that’s it for today. So Intelligent REIT Daily readers won’t get any bonus updates this time around.

But we never know when we’ll have a full list to pick and choose from. That’s why I’m still going to advise that you sign up for your free subscription asap.

I don’t think you’ll regret it.

(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.

The Big “I” Word Makes the News Again

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

Positive Spins and Russian Realities

Brad Thomas

467 postsMarch 9, 2022

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Positive Spins and Russian Realities

467 postsMarch 9, 2022

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