iREIT Daily

The Questions You Need to Ask

Brad Thomas

467 postsAugust 12, 2021

I don’t know about you, but I don’t feel like talking about inflation three days in a row. So how about an excerpt from my new book instead?

The Intelligent REIT Investor Guide focuses on everything about real estate investment trusts (REITs), from its history… to its amazing benefits… to the subsectors it involves… and so much more.

Take Chapter 15, which starts out this way:

Before you place any buy orders, let’s take a step back and seek some perspective. For instance, how much of a good thing do you want? And how much should you have?
Almost every book on financial planning and investing discusses asset allocation: how much of one’s portfolio should be in stocks (domestic and international, large-cap and small-cap, growth and value, and so on), bonds, real estate, and cash. And let’s not forget commodities and other “alternative investments” out there for you to consider.
Some experts say that, as we get older, we should shift more into bonds over stocks in order to reduce risk. Others recommend that our asset allocation be adjusted as needed according to economic, interest rate, and investment environments – or even one’s tolerance for risk and volatility.
Personally, I don’t know if there’s a universally right answer. The way I see it, your proper asset mix should depend on your objectives, financial ability to absorb losses, and emotional tolerance for risk. And while this isn’t a book about financial planning, here are a few thoughts about REITs’ role in a diversified investment portfolio for starters.

Naturally, it continues from there, as does this blog post…

The Intelligent REIT Investor Guide on Display

I really did start with the basics with this chapter, and not because I’m underestimating my readers. It’s more that I understand general human nature, having been human a time or two myself.

That’s why I wrote these next paragraphs too:

If you have substantial spending needs over the next year or two, keeping enough cash to meet them is highly important. That’s true even when bank savings and certificate of deposit (CD) rates are embarrassingly low. At least they still give you quick access to your money when you need it. Investing, on the other hand, is always an uncertain venture to some degree or another, particularly over the short term.
Stock prices are affected by interest rates, inflation, corporate profits, budget deficits, the dollar’s strength, world geopolitics and wars, global trade, and other situations we haven’t even conceived of. And, of course, investment styles shift constantly. While solid stocks are going to perform well over the long-term, they can stagnate for years through no fault of their own.
Let’s assume you have $100,000 apart from your savings that you don’t think you’ll need for several years. Or perhaps you have $50,000 sitting in cash in a 401(k) plan. What you do with that should depend on:
– How aggressive an investor you are (i.e., how much your pleasure from gains offsets your pain from losses)
– How comfortable you are with market volatility and fluctuating portfolio values

– How much you would have to adjust your lifestyle in the event of a possibly permanent loss in value

– How much and when you will need to withdraw annually from your portfolio investments to supplement your salary, pension, or Social Security payments

– How important a steady stream of dividend income is to you.

Want to read through to the profitable conclusions this Intelligent REIT Investor chapter can take you to? It’s available on Amazon right now!

The World According to REITs

Okay then. On to today’s REIT news, which shows exactly how much earnings season is winding down…

New York City REIT (NYC) reported Q2-21 revenue of $15 million with a net loss of $11.1 million. Funds from operations were -$4 million, which was better than Q1’s -$5 million. Also on the better-than-it-could-be side, portfolio occupancy rose from 82.8% to 84.5% quarter over quarter. And it collected 89% of original cash rent due, another step up, this time from 85%.
CatchMark Timber Trust (CTT) finalized its sale of the Bandon property – 18,063 acres of prime Oregon timberlands – to Roseburg Resources for $100 million. That’s a significant sale price compared to its 2018 purchase price of $88.8 million.
Easterly Government Properties (DEA) commenced an underwritten public offering of 6.3 million common shares. This comes with the additional ability for underwriters to buy up to 945,000 shares extra within 30 days of the sale.

Incidentally, that first company mentioned wasn’t well-received yesterday. Not at all.

(The Daily REITBeat)

Happy Investing

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.

Retail Investors Don’t Have To Fear Market Sell-Offs

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

The Questions You Need to Ask

Brad Thomas

467 postsAugust 12, 2021

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The Questions You Need to Ask

467 postsAugust 12, 2021

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