iREIT Daily

Sorry, but Inflation Forced My Hand

Brad Thomas

467 postsJune 3, 2022

I think it’s safe to say that this wave of runaway inflation is the biggest economic impairment the U.S. – and the world – has had to face over the last decade. No matter where you turn, what you read, or what side of the aisle you’re on, this issue is front-and-center in our collective consciousness.

The scary part is in the uncertainty it brings. Experts across the full spectrum of our financial landscape have posited competing theories about its peak, origin, and greater implications. Yet still it drags on with no end in sight.

Speaking of drags, it’s definitely weighing heavily on Biden’s head right now, as his approval rating continues to sink. Sound economic policy was part of the platform he ran on, yet he now admits he’s powerless in the face of inflation.

Here’s what he said on Wednesday:

“There’s a lot going on right now. But the idea we’re going to be able to, you know, click a switch, bring down the cost of gasoline, is not likely in the near term, nor is it with regard to food.”

That gas cost, incidentally, is now at another record-high of $4.67 per gallon. And annual inflation is soaring about 8% – a four-decade record as determined by the Labor Department’s consumer price index.

Treasury Secretary Janet Yellen has also admitted abject ignorance about her former inflation forecasts. She appeared on television Tuesday to walk back her stance on our economic trajectory, admitting the situation was much more difficult to define than she organically believed.

Considering all of these commentaries, it’s easy to see that top federal officials are finally becoming concerned about the issue. Biden even penned an op-ed in The Wall Street Journal where he claimed he was ready to “work with anyone – Democrat, Republican, or independent – willing to have an open and honest discussion that delivers real solutions for the American people.”

But many are saying it’s too little too late for a problem that didn’t have to be this bad to begin with.

To quote Yahoo Sports (for some weird reason):

“Steven Rattner, economic adviser for President Barack Obama, said much of the blame for inflation falls on Biden’s American Rescue Plan, which gave many Americans $1,400 checks, unleashed a host of social programs, and pumped $350 billion into local and state governments.
“‘We’re all paying the price for having overstimulated this economy during the pandemic and putting too much money into people’s pockets, which created a lot of this inflation,’ Rattner said Wednesday on MSNBC’s Morning Joe. ‘There’s no free lunch here. Now we’re all going to have to pay the price.’”

He added that today’s economic issues are “to a considerable degree self-inflicted… by our fiscal policy, the stimulus, as well as by the Federal Reserve.”

And now we have to pay the piper.

More Non-REIT News to Know About

In a major, major move, Amazon (AMZN) says it’s removing its Kindle device and content sales in China. This comes as the single largest American tech retreat the People’s Republic yet has experienced.

From The Wall Street Journal:

“Amazon said Thursday it will stop selling titles in China on its Kindle e-book shop on June 30, 2023. And customers will no longer be able to download already-purchased books a year later. The company said it has already halted sales of the device to third-party sellers and is offering refunds to anyone who bought a Kindle in China after Jan. 1.”

Why?

Well, it might have something to do with China issuing some of the world’s strictest censorship standards. As such, it’s earned the ire of many companies, including LinkedIn. That tech major announced it would suspend operations there last year for that very issue.

Then again, Amazon’s move could be because it no longer enjoys the same significant spot it used to in the country’s e-reader ranks. China’s own tech companies have been eating into its profits there.

In 2021, Kindle owned 65% of China’s e-reader market and drove the most book sales for the country. However, overall e-reader sales in 2021 dropped 12.5% to 2.1 million units.

Whichever one is the real reason driving Amazon out of China in this area… I’ve got my eyes on what comes of it.

The World According to REITs

Get ready REIT world!

Nareit’s REITweek is set to kick off next week at the New York Hilton Midtown Hotel in Manhattan.

The REITweek Investor Conference is the largest annual real estate investment trust industry investor event in the world. It attracts over 3,000 investors, REIT executives, and industry pros each year. And that’s just in-person attendees.

This event provides opportunities for investors to meet one-on-one with REIT management teams. Attendees can hear directly from more than 90 top REIT management groups as they divulge business plans, forecasts, and strategies during 30-minute presentations.

It also offers compelling panels that provide the latest perspectives on the economy, industry trends, and other investment insights and information. It’s hard to find a better place to be if you’re looking to get even more invested in the REIT world!

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.

Record Taxes and the Tale of Two Economies

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

Sorry, but Inflation Forced My Hand

Brad Thomas

467 postsJune 3, 2022

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Sorry, but Inflation Forced My Hand

467 postsJune 3, 2022

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