iREIT Daily

Tax Day 2022: A Recap, A Retrospective

Brad Thomas

467 postsApril 19, 2022

For those of us in the midst of the all-American workforce, the ides of April spell one thing and one thing only: Tax Day. The ever-looming deadline finally caught up with us yesterday and now we await the good word on our e-file statuses, audit notices, or (for some) refund checks.

In the past, the tail end of April spelled a sigh of relief for all those who would have their returns promptly processed, along with perhaps a little liquid infusion in the form of some refund cash. Sadly, this year will be an uphill battle as the IRS backlog continues in the wake of a COVID-influenced economy.

For the IRS, this means throwing as many resources as possible toward clearing out the backlog that built up in 2021.

For civilians, this equates to ever-clogged phone cues, unanswered questions, and wait times of up to six months for refunds and return statuses.

In the last week, the IRS processed nearly 99.8 million returns — up 9.5% from last year. With a daunting backlog, the delays in this year’s filing could spell hardships for cash-strapped families across the country.

“The IRS has to get current with not only prior year’s but this year’s tax returns before they move into the next filing season without this albatross around its neck,” said Erin Collins, the national taxpayer advocate.

“Because in order to move forward we need to get current.”

Someone write that last sentence down as a campaign slogan for the mid-term elections. I kid. But in all seriousness, if you’re expecting to reap the rewards of a freshly minted refund check, the best thing you can do is file electronically and hope the powers that reign in the Internal Revenue Service will smile down upon the summation of your annual income and grant your pleas for a “Processed” notice.

Other Non-REIT News to Know About

President Joe Biden and his bookkeeper now face IRS whistleblower charges claiming that Biden owes at least $127,000 in back taxes.

The complaints were filed by Chris Jacobs, a former Republican aide on Capitol Hill, to coincide with Monday’s federal tax filing deadline.

From New York Post:

Federal agencies must implement laws on a non-partisan basis,” Jacobs told The Post. “The fact that the IRS did not audit Joe Biden’s 2017 through 2019 returns, despite several articles publicly raising questions about the propriety of his actions, raises questions about how the IRS administers our nation’s tax laws, and whether political considerations played a role in the IRS’ decisions.

We’ll be watching closely to see how this story plays out—and whether the Bidens will end up facing repercussions.

REITs for Rapid Dividends

One of the best features of the REIT world is the generous yield potential and dividends that make real estate investment trusts so attractive as an asset class. Today, I want to look at three REITs in particular that have boasted 12-month dividend growth of at least 10%.

Take a look:

NexPoint Residential Trust (NXRT) – With a market value of $4.2 billion and TTM dividend growth of 10%, this multi-family real estate trust is a big win, especially in an era where the single-family housing market has gone haywire. Right now, NXRT owns 39 apartment complexes with 14,825 units across 10 sunbelt urban markets including Houston, Las Vegas, Dallas/Fort Worth, Raleigh, Nashville, Charlotte, Atlanta, Orlando, Phoenix, South Florida, and Tampa.

The REIT builds equity by acquiring and upgrading old properties, adding sleek amenities and eco-friendly cost-saving features while keeping rental rates affordable. I would definitely give it a once-over if you’re looking for reliable dividend returns.

Arbor Realty Trust (ABR) – Arbor Realty Trust is one of the best options available when talking REIT dividends. This trust has had 10 consecutive years and seven straight quarters of dividend increases. In terms of both three-year and five-year returns, ABR delivered yearly dividend growth of 11% and 17% respectively. Currently, it has a market value of $2.7 billion and TTM dividend growth of 13%. As I write this, you can own your very own piece of the pie for $16.93 per share.

ABR is a mortgage REIT that invests in financial assets across the entire spectrum of multi-family, single-family, and commercial sectors while managing a multi-billion-dollar loan-servicing portfolio. It’s definitely one to watch.

American Tower (AMT) – American Tower is a fan favorite for anyone looking to grow REIT dividends. With a market value of $121.5 billion and a TTM dividend growth of 15%, this world leader in cellular communications infrastructure is an awesome pick to put some dividend coin in your pocket. As of right now, the company has 220,000 towers all over the globe, including a huge presence throughout the U.S., Europe, India, Europe and Africa. Demand for these towers is increasing rapidly as growing saturation for wireless service and mounting usage of mobile data are forecast to increase 25% annually through 2027.

If I were looking at one REIT with real future potential, I’d be paying close attention to American Tower. But as of right now, I am currently long NXRT out of the three above.

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

Tax Day 2022: A Recap, A Retrospective

Brad Thomas

467 postsApril 19, 2022

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Tax Day 2022: A Recap, A Retrospective

467 postsApril 19, 2022

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