iREIT Daily

TGIF! And a Few Other Things to Celebrate!

Brad Thomas

467 postsMay 27, 2022

It appears we made it to another Friday, so good for us.

In a week where we’ve been forced to digest some not-so-pleasant economic circumstances, I think we deserve to dance into Memorial Day weekend with our heads held high and some good news on the horizon.

Where is this good news, you ask? Well, look no further than mortgage wheeler and dealer Freddie Mac. Though we will need to wade through more frustrating data first to get there…

With home prices hitting their highest levels in history, inventory in decline, and demand through the roof, millennials and other first-time homebuyers have really been through the wringer the past two years.

To add to the frustration, interest rates have soared in the last several weeks. Two weeks ago, they hit their highest peak since 2009 at a 5.3% average 30-year fixed mortgage.

But the good news is that we may all soon see relief from these incredibly high rates. More relief, that is.

For the second week in a row, interest rates have dipped from 5.3% to 5.1%, hopefully kicking off a trend that will follow us into the hottest summer the housing market has ever seen.

“Mortgage rates leveling off is a lifeline for prospective home buyers already dealing with inflation and record-high listing prices, and welcome news for the housing market at large,” Joel Berner, senior research analyst at Realtor.com, said in a statement. “Dark and stormy is the current mood. But a period of steadier rates below recent highs will give buyers, sellers, and builders alike the time to adjust to the new financial environment.”

Earlier this year, the Fed reversed its position on the mortgage-bond market, kicking off the initial climb in rates we’ve seen. Interest then increased further still on the expectations that the Fed would keep hiking short-term rates throughout 2022.

So even if what we’re seeing today is merely a 0.2% move, it could save homebuyers hundreds in monthly mortgage expenses – especially if the downward trajectory continues. Since peaking, these rates have driven mortgage payments up by $300 this year.

In our inflationary economy, lower interest rates are essential for saving money – especially when you factor in other household expenses like food and energy.

So, for all those suffering the slings and arrows of this red-hot housing market, I hope this comes as good news to end your week and maybe even gives you a little more confidence in your hunt for the perfect home.

More Non-REIT News to Know About

Let’s keep the good news coming!

In the last several days, I’ve reported on the dismal state of the retail world. Target (TGT), Walmart (WMT), and Best Buy (BBY) have endured disappointing earnings, dipping share prices, and scrutiny from all corners of our equities realm. With such a complicated Q1, you’d assume the entire shopping sector was set for failure.

Thankfully, this isn’t so.

Discount chains Dollar General (DG) and Dollar Tree (DLTR) just annihilated investor expectations in an earnings report that sent both companies’ share prices soaring yesterday. As The Wall Street Journal reported:

“At Dollar Tree, same-store sales, or those from stores operating for at least 12 months, rose 4.4% during the quarter ended April 30, after the company broadly raised prices above $1 per item. Profits also rose, and the company raised sales and earnings estimates for the full year.
“Dollar General said same-store sales decreased 0.1% as fewer shoppers visited its locations in the April-ended period. Quarterly profits came in ahead of expectations, however, and the company raised its annual forecast for growth in same-store sales.”

Shares for Dollar General rose 15% in yesterday’s trading, and Dollar Tree saw a whopping 21% increase. So what does this say for the strength of the American shopping sector? Well, these results certainly point to a resilient discount realm, even in the face of record-breaking inflation.

These types of retailers are equipped to thrive even when their conventional competitors are suffering from the fallout of inflation.

Surprisingly though, Macy’s (M) also came through this week too. As The Motley Fool noted, shares “surged 19% on Thursday after the department-store chain delivered surprisingly strong earnings and boosted its full-year profit forecast.”

The company saw consumers coming back to its stores (or its website) to buy back-to-work clothing especially. The result was revenue rising 13.6% year-over-year to $5.3 billion last quarter.

The World According to REITs

Those invested in National Storage Affiliates Trust (NSA) have a lot to celebrate this season. The high-quality self-storage real estate investment trust (REIT) just announced its largest year-over-year dividend increase ever.

Yesterday, its board of trustees declared a $0.55 regular cash dividend for Q2, equaling an annualized dividend rate of $2.20. This increase represents a 45% year-over-year climb and a 10% jump from the previous quarter.

A $0.375 dividend will also be paid on the company’s 6.000% Series A Cumulative Redeemable Preferred Shares.

Tamara Fischer, President and CEO of NSA, commented:

“We are pleased to announce another significant increase to our quarterly common dividend, which represents the largest year-over-year dividend increase in the company’s history. This is our fifth straight quarterly dividend increase and is consistent with our rapidly growing core FFO [funds from operations] per share. Our growing dividend remains a key ingredient to delivering attractive total shareholder returns.”

And there you have it, folks! A TGIF to celebrate with:

Lower interest rates
Exceeded retail expectations
Record dividends in the REIT world

Now let’s go into Memorial Day weekend honoring those who sacrificed – and remembering that it’s our collective optimism and resilience that make this country a winning investment for the world.

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.

Bank of America Shrugs off the “Future”

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

TGIF! And a Few Other Things to Celebrate!

Brad Thomas

467 postsMay 27, 2022

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TGIF! And a Few Other Things to Celebrate!

467 postsMay 27, 2022

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