Santa Delivers Stimulus

Brad Thomas

467 postsDecember 28, 2020

Quote for Today:

“A simple fact that is hard to learn is that the time to save money is when you have some.”
– Joe Moore

Welcome to the very last days of 2020, everyone! I hope you had a wonderful Christmas and are feeling refreshed and ready to tackle this new shortened work week.

Or, if you’re retired, I hope you’re feeling refreshed and ready to tackle whatever’s on your to-do list. Maybe getting some exercise walking along your local Florida beach? Solving today’s crossword puzzle? Volunteering at your local shelter or community center?

For my part, I look forward to enjoying those post-working days. There’s a whole list of things I’d like to put my hands to at that point. But for now, I’m still very much involved in reading the investment news, interpreting it appropriately, and passing it on to you.

Our first big piece of portfolio-affecting information is something you probably already know, I have to admit. It’s the big headline everywhere: that President Trump signed the $2.3 trillion coronavirus aid and government spending package after all.

This did come with several political caveats, including a demand – under the authority granted by the Impoundment Control Act of 1974 – to rescind certain spending clauses the original bill included. The president specifically mentioned how “Congress has promised that Section 230, which unfairly benefits Big Tech at the expense of the American people, will be reviewed and either… terminated or substantially reformed.”

And the House will be voting today on whether to increase individual stimulus payments from $600 to $2,000 per person. So we shall see what news we have to report tomorrow.

For now, we do know – thanks to a Mastercard report – that U.S. retail sales rose 3% between October 11 and December 24. Of that, ecommerce sales increased 49%, though not of it went to Amazon (AMZN). Well-positioned brick-and-mortar retailers like Walmart (WMT), Target (TGT), Home Depot (HD), and others took a decent chunk of those profits as well.

(Source: Investopedia)

Speaking of brick-and-mortar, the movie Wonder Woman 1984 did pretty well for itself with its Christmas Day debut… all things considered. Opening in 2,151 theaters across the U.S., it had made $16.7 million as of Sunday afternoon. And, globally, it brought in an estimated $85 million.

It does have to be said that its cinematic predecessor made $100.5 million its opening weekend way back in 2017. The first Wonder Woman movie, after all, didn’t have to compete with HBO Max, social-distanced seating, and pandemic-induced agoraphobia.

But I suppose it’s nice to see there’s still some demand for movie theaters left. We’ll just have to wait to find out exactly how much good this data will do the industry going into 2021.

One way or the other, I’m not recommending buying shares in EPR Properties (EPR) quite yet. There are better investments out there in the meantime.

Some REIT News

Consider what industry expert Nareit published earlier this month:

“The commercial real estate market has sources of strength that has softened the impact of the economic downturn and will continue to do so in 2021. One key source of resiliency unique to REITs is that nearly two-thirds of the REIT industry is comprised of sectors with little direct impact from social distancing.”

And this next part is worth quoting too:

“REITs, which represent approximately 20% of the value of the broader investment-grade commercial real estate market entered the downturn with strong financial positions, defined by low leverage, long debt maturities, and high levels of liquidity on balance sheets.”

My upcoming book, The Intelligent REIT Investor, includes a segment on the deleveraging effects for most REITs over the last decade. It comes courtesy of one of my incredibly intelligent and in-the-know contributors, Penn State University’s Eva Steiner, who helps me break down the topic into an easily understandable read.

I can’t wait to share it with you, since it’s one of the reasons I sleep well at night – even during a global pandemic.

In other news, sourced as ever by the Daily REITBeat…

Ashford Hospitality Trust (AHT) secured a $200 million senior secured loan from Oaktree Capital Management. Under the terms of the agreement, it can be upsized by $150 million if requested to fund general corporate operations deemed necessary.
Monmouth Real Estate (MNR) acquired a new 657,518 square-foot industrial building in Locust Grove, Georgia for $96.7 million. The property is set on about 130 acres of land and is net-leased for 20 years to Home Depot (HD).
Finally, Easterly Government Properties (DEA) bought a 149,110 square-foot regional office and warehouse facility in Billings, Montana. It’s 100% leased to the U.S. Department of the Interior, making it a very stable tenant indeed.

(The Daily REITBeat)

Here’s wishing you a safe, sane, and wonderful post- and pre-holiday period.

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.

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

Santa Delivers Stimulus

Brad Thomas

467 postsDecember 28, 2020

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Santa Delivers Stimulus

467 postsDecember 28, 2020

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