iREIT Daily

Ready… Aim…

Brad Thomas

467 postsDecember 20, 2021

I know it’s Monday, with a certain family-filled holiday to look forward to in mere days. But I need to turn our attention back to the crazy trading timeline that was Friday.

I know I’ve been talking about volatility, but really! What exactly happened with the Nasdaq?

First it was in the red. Then it conquered that negativity. Then it dipped back down. Then it recovered. And then it dipped back down again – only by 10.75 points, or 0.07%, but still!

Talk about a directionless index.

The S&P 500, for its part, started out and stayed in the red. It did look like it could come out ahead at one point, flirting with the break-even line… but ultimately ended down 48.03 points, or 1.03%.

And the Dow? The Dow lost 532.20 points, or 1.48%.

I’m not going to say that answers my Thursday questions about a Santa Claus rally. (Though this morning’s figures aren’t looking promising so far.) We still just don’t know, and drops like these can simply be dips before greater gains.

But suffice it to say that – at least for the second full week of December – Santa’s naughty list was much longer than his nice one. All three major indices gave up ground between Monday’s open and Friday’s close.

Then we have today, where multiple countries are locking down, partially locking down, or mulling locking down.

Take the major manufacturing Chinese city of Dongguan. It won’t let people leave parts of the city without proof of a recent – as in 48-hours recent – negative Covid test.

And the eastern province of Zhejiang paused production of two cobalt salt plants 10 days ago over Covid concerns. That material is crucial in making lithium-ion batteries for electric vehicles, so we’ll see how long these closure lasts.

But Spider-Man Shows Us All Isn’t Lost

The Netherlands, meanwhile, issued nationwide lockdowns. Schools and universities will have to shutter until January 9. All non-essential operation will be closed until January 14. And households can only have two visitors at a time except for Christmas and New Year’s.

Then they’ll be allowed four.

Elsewhere in Europe,” Fox Business writes:

Alarmed ministers in France, Cyprus, and Austria tightened travel restrictions. Paris canceled its New Year’s Eve fireworks. Denmark has closed theaters, concert halls, amusement parks, and museums. Ireland imposed an 8 p.m. curfew on pubs and bars, and limited attendance at indoor and outdoor events.
London Mayor Sadiq Khan underscored the official concern about the climbing cases and their potential to overwhelm the [healthcare] system by declaring a major incident Saturday, a move that allows local councils in Britain’s capital to coordinate work more closely with emergency services.

Here in the U.S., Biden is apparently going to make a cautionary statement tomorrow. But nobody’s made any mandate announcements, as far as I’m aware.

Even if they had, I’m not sure it would have squashed the Spider-Man: No Way Home sentiment that gripped the country this weekend.

The movie debuted in theaters this weekend. And boy, but did people go out to see it. North American ticket sales grossed $253 million, making it the third-highest box office opening of all time.

Obviously then, it’s the highest since the shutdowns began, spurring Sony Pictures CEO Tom Rothman to say:

This weekend’s historic Spider-Man: No Way Home results from all over the world and in the face of many challenges, reaffirm the unmatched cultural impact that exclusive theatrical films can have when they are made and marketed with vision and resolve.

Looks like it learned its lesson there.

The World According to REITs

Knowing all that, it makes sense that European markets are down this morning. But why are U.S. indices suffering too?

There are a few different reasons for that, starting with how very interconnected the world is these days. Traders are also no doubt spooked by the possibility of U.S. shutdowns.

And then there’s Biden’s Build Back Better plan, which West Virginia Senator Joe Manchin says he won’t vote for. He maintains that it involves taking on far too much debt on top of far too much debt already accumulated.

Clearly unhappy with that decision, Bloomberg writes how:

Goldman Sachs Group Inc. economists reduced their U.S. economic growth forecasts after Senator Joe Manchin blindsided the White House on Sunday by rejecting Biden’s roughly $2 trillion tax-and-spending package, leaving Democrats with few options for reviving it. The Senate will still vote ‘very early’ in 2022 on Biden’s economic agenda, Majority Leader Chuck Schumer said Monday.

There’s so much more I want to write about this morning, but I have to leave off there except to say this…

If these selloffs continue, we’re not panicking. Remember that we’ve been expecting them for quite a while.

As such, we’re not panicking. Just waiting to see which stocks come within our sights valuation-wise as a result.

Ready… aim…

Stay tuned to see what we decide to fire at in these last few days before Christmas!

Until then, here are your Monday morning real estate investment trust (REIT) updates:

Boston Properties (BXP) purchased the 20-story, 450,000 square-foot 360 Park Avenue South building in Manhattan for $300 million.
Rexford Industrial Realty (REXR)acquired five industrial properties for $141.4 million, all in California. Each one is currently being rented out at 25%-40% below market rate.
Paramount Group (PGRE) refinanced its existing senior unsecured revolving credit facility. It now has $750 million under that agreement, an amount that matures in March 2026, with two six-month extension options from there.

And, considering how last week was what it was, here’s a slightly different chart than usual to wrap everything up:

(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.

Dividend Growth Stock of the Week: Bristol-Myers Squibb Company

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

Ready… Aim…

Brad Thomas

467 postsDecember 20, 2021

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Ready… Aim…

467 postsDecember 20, 2021

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