iREIT Daily

So Much Better Than Expected!

Brad Thomas

467 postsFebruary 4, 2022

The U.S. January jobs report is out today, and boy was the White House wrong.

Days ago, it warned not to expect too much, saying that the figure would likely be depressed due to Omicron. Yet we now know that payrolls increased by 467,000 – much, much better than analysts expected as well.

Elsewhere, admittedly, the U.S. service sector reported less exciting news yesterday. Industry activity slowed last month to an 11-month low, according to the Institute for Supply Management.

Its non-manufacturing activity index fell from 62.3 in December to 59.9, this time mainly as expected. If anything, economists were projecting a slightly lower number.

I also need to mention that anything above 50 does indicate growth. So there’s that to be thankful for.

Here’s another thing. A bigger one, in fact…

Ford (F) shares dropped 3.59% yesterday and were down almost 6% this morning in pre-market trading around 7:00. And that despite its bullish 2022 forecast.

Yet it didn’t meet analysts’ Q4 projections, and its forward-looking optimism wasn’t as impressive as General Motors’ (GM). So it apparently need to be punished.

For the record, I’m not shorting the stock. I’m simply using it as an example of how unreliable short-term trading mindsets can be…

And how you don’t have to fall prey to such volatility.

Keep in mind that Meta Platforms/Facebook(FB) tanked (at least in part) because it did meet quarterly expectations but disappointed on Q1 projections. Yet Ford got the exact opposite treatment?

Those kinds of head-scratchers are why my team and I are so laser-focused on long-term quality and short-term price points. We buy stocks based on their fundamentals and valuations.

And we only exit when that combination changes enough.

It’s a system that works, bringing great gains and peace of mind alike.

More Non-REIT News

I want to return to Facebook for a moment since I mentioned it in yesterday’s Intelligent REIT Daily – my free e-letter:

Tech stocks dominated yesterday’s news. And while it’s still obviously early to tell, they might make or break today’s markets too. By “they,” I mean Facebook, which met or barely beat many Q4 earnings expectations. Yet everyone is fixated on its Q1 outlook instead.

While I doubt it’s entirely responsible for the major indices dropping the way they did – investor sentiment right now is about as nervous as a long-tailed cat in a room full of rocking chairs, after all – I do think it’s safe to say the tech giant didn’t help considering how it was down 85.24 points, or 26.39%, to 237.76 yesterday.

Meanwhile:

The S&P 500 fell 111.94 points, or 2.44%
The Dow fell 518.17 points, or 1.45%
The Nasdaq fell 538.73 points, or 3.74%.

Not pretty pictures, I acknowledge. Though I’ll then point you right back to my last few lines of the previous segment.

There really are ways to maintain your profits and sanity amidst this kind of craziness. And, with all due respect to Cathie Wood, being too trendy isn’t one of those ways.

Morningstar portfolio strategist Amy Arnott recently reported that, “Investors have put in about $15.7 billion” into Wood’s flagship ETF Ark Innovation (ARKK) since it launched in 2014.

Yet “the current assets’ total is $11.6 billion.” Over just the past two years, “there’s about a $2.6 billion loss.

Again, I’m not trying to badmouth a single individual here. I’m simply trying to point out the flaw of chasing shiny things, much less trying to market-time as you do.

Choose quality. Choose value.

When you do, you’re going to get somewhere good much, much, much more often than not.

The World According to REITs

We’ve got two REIT earnings reports to highlight today among other updates available:

Camden Property Trust (CPT) announced Q4 funds from operations (FFO) of $1.51 per share with 2022 guidance of $6.09-$6.39. Quarterly same-property revenue rose 8.5% over Q4-20 and 2.5% over Q3-21. Net operating income (NOI), meanwhile, rose 14.9% and 8.4%, respectively. And same-property occupancy either rose or fell depending on the metric. It was 97.1%, which was better than the 95.5% 2020 ended on but down from Q3’s 97.3%.
Cousins Properties (CUZ) recorded Q4 FFO of $0.69 per share with 2022 guidance of $2.70-$2.78. Its same-property NOI added 2.1% for the quarter and 3.5% for the year on a cash basis. And second-generation net rent per square foot (also on a cash basis) climbed 6% and 15.1%, respectively.
Urstadt Biddle Properties (UBA) purchased Shelton Square Shopping Center in Shelton, Connecticut, for $33.6 million. The property, which consists of 186,000 square-foot leasable space across one main building and three pad sites, is 96.5% leased.

Looking at the larger REIT-scape, we can see that the bulls were not in control of this sector – any more than they were anywhere else yesterday.

But sleep well tonight anyway knowing that short-term volatility is to be expected.

And we’re in it for the long haul.

(Source: The Daily REITBeat)

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.

Finding Peace of Mind With Predictable Dividends

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

So Much Better Than Expected!

Brad Thomas

467 postsFebruary 4, 2022

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So Much Better Than Expected!

467 postsFebruary 4, 2022

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