iREIT Daily

Russia vs. the World

Brad Thomas

467 postsMarch 1, 2022

It’s all about Russia again on this first day of March 2022. And that’s not a good thing for said country considering how many companies and organizations are acting out against it.

Here are just some of the recent moves:

The NYSE halted trading of certain Russian-based companies yesterday, and the Nasdaq said it will do the same with its own listings.
Mastercard (MA) and Visa (V) are imposing their own restrictions on select firms.
The U.S., U.K., Canada, European Union, and Japan have all taken measures against Russia’s central bank. For the U.S., that means freezing such financial transactions held by Americans. The Commerce Department has also pledged to restrict technology exports. And the same governments above, plus Australia and New Zealand, have all said they’ll do something similar.
Shell (SHEL) says it will exit its substantial joint venture with Russia’s Gazprom. And BP (BP) already announced it would exit its almost 20% stake in Russia’s Rosneft.
Disney (DIS) declared yesterday that it’s “pausing the release of theatrical films in Russia” due to “the unprovoked invasion of Ukraine and the tragic humanitarian crisis.”

On that last note especially, it’s probably important to pause before praising any of these institutions too much. After all, it’s a whole lot easier to say such things against Russia then, say, China, where these countries and companies have much greater financial connections.

There’s a lot of politics being played, to say the least. And there are always consequences – good, bad, and completely complicated – in an altercation of this size.

Airlines recognize this intensely. The Biden administration is reportedly considering banning Russian aircraft from U.S. airspace. In which case, Russia will doubtlessly do the same against U.S. aircraft.

Clearly, that will be more than a little bother for that already beleaguered industry.

More Non-REIT News to Know About

Two winners out of all this, on the other hand, appear to be gold and cryptocurrencies. At least for the present. We’ve all seen how unreliable both have been despite their shared thesis of being safe alternatives to paper money.

For now though, the Bank of Russia has taken to buying up gold to counter some of the sanctions mentioned above. And many an investor expects the country to dive even more heavily into crypto for the same reasons.

As it is, The Institute of International Finance believes half of Russia’s central bank’s foreign reserves are in countries that are sanctioning it. Its deputy chief economist, Elina Ribakova, said Russia will likely default and have to restructure if nothing changes in its favor.

And JPMorgan (JPM) released this note to clients the other day:

We tentatively assume that Russia’s economy will contract 20% [quarter-over-quarter], saar, in 2Q. and for the year around 3.5%. But the margin of error for any such guesstimate is incredibly high at this point. And risks are skewed heavily to the downside. Moreover, we believe Russia’s growing political and economic isolation will curtail Russia’s growth potential in years to come and lower Russia’s trend growth to [1%], down from 1.75% previously.

Then there’s this from Bloomberg:

The VanEck Russia ETF… [RSX] and the iShares MSCI Russia Capped ETF (ERUS) plunged 30% and 27%, respectively, in U.S. trading Monday…
The Bank of Russia halted trading in Moscow on Monday, one of several measured unleased in a bid to shield the nation’s economy from sweeping sanctions. That has turned the two ETFs, which primarily track Russian energy stocks, into useful price-discovery tools for traders seeking to navigate the geopolitical turmoil…

Both “have plunged nearly 60%” year-to-date.

The World According to REITs

As I assured you yesterday, we’ve got The Daily REITBeat back this morning… just in time to cover real estate investment trusts’ (REITs) full-on February actions.

Some of this should be no big surprise considering the major day-to-day moves we saw last month.

(The Daily REITBeat)

That top mover above did fall a little in yesterday’s market. But that might have just been due to a little post-earnings profit taking…

Preferred Apartment Communities (APTS) recorded Q4 funds from operations (FFO) of $0.24 per share. Its multifamily portfolio saw same-store revenue rise 9.6% and same-store net operating income (NOI) rise 14.8% year-over-year. Meanwhile, that collection’s rent came in at 99% for the quarter and the same for APTS’ grocery-anchored retail properties. For the full year, same-store NOI increased 7.2%, which was better than expected.
Global Medical REIT (GMRE) announced Q4 FFO of $0.23 per share. Revenue was up 21.7% year-over-year, mostly thanks to its four acquisitions amounting to 110,659 leasable square feet for $25.9 million. The company generated $11.3 million in gross proceeds from its at-the-market equity offerings for the quarter. For the year, its equity issuances jump to $212.6 million. And total acquisitions were 20 buildings with a collective 652,155 leasable square feet for $189.1 million.
Healthcare Trust of America (HTA) reported Q4 FFO of $0.43 per share. Same-property cash NOI grew 1.1% year-over-year, and its portfolio ended the year with an 89.3% lease rate in terms of gross leasable area (GLA). Occupancy was 87.5%. Its total liquidity, meanwhile, was $1.1 billion, with $1 billion available on its unsecured revolving credit facility and $52.4 million in cash and cash equivalents.
Xenia Hotels & Resorts (XHR) recorded Q4 adjusted FFO (AFFO) of $0.25 per share. Same-property revenue per available room (RevPAR) was $136.01, down 17.5% from Q4-19. And it was down 38.3% for the full year to $110.80. The company did, however, say its preliminary February results showed “a substantial rebound as the projected RevPAR of approximately $157 would represent an approximately 19% decline compared to a very strong February 2019 and the highest absolute monthly RevPAR since the beginning of the pandemic.”

I also have yesterday’s market action mentionables below for you to review…

(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.

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

Russia vs. the World

Brad Thomas

467 postsMarch 1, 2022

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

Russia vs. the World

467 postsMarch 1, 2022

REIT Mutual Funds

REIT ETFs

Not All Dividends Are the Same