iREIT Daily

The Reopening Loves Me. The Reopening Loves Me Not.

Brad Thomas

467 postsFebruary 10, 2022

Here’s some good news for the ongoing reopening narrative: Uber Technologies (UBER) reported earnings yesterday after the markets closed. And earnings were good.

Despite being a household name for years, the “taxi service” company isn’t known for posting positive earnings per share (EPS). Which, to me, seems to indicate it went public too soon.

But that’s another story for another day. And probably another service altogether. For here and now, let’s just focus on how Uber’s:

Gross bookings rose 50.8% year-over-year.
Revenue rose 82.6% to $5.78 billion compared to the $5.34 billion expected.
Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) rose $540 million to $86 million.
EPS came in at $0.44 versus the $0.35 loss analysts expected.

Now, on that latter calculation, it did include a $1.4 billion pretax, equity investment-related net benefit. Without it, there would have been no positive number to share in this regard.

Uber’s EPS would have been -$0.26.

We can’t fail to acknowledge that when considering the headline data. At the same time, we shouldn’t overlook how it was still much better than expected – and in the midst of the Omicron spike too.

CEO Dara Khosrowshahi said the variant did affect it starting in late December. But “mobility is already starting to bounce back, with gross bookings up 25% month-on-month in the most recent week.”

And here’s some more important data, as reported by CNBC:

Uber reported 1.77 billion trips on the platform during the quarter, up 8% from the prior quarter and 23% from 2020. Monthly active platform consumers reached 118 million, also up 8% in the quarter.

Again, all put together, I’d say this indicates more reason to be optimistic.

More Non-REIT News to Know About

My goal is always to be transparent and analytical, of course, instead of becoming hooked on a narrative and reporting nothing else. That’s why we also need to discuss Walt Disney (DIS) and its after-bell earnings report.

The entertainment icon did post stronger-than-expected Q1 earnings. But that had a lot to do with its streaming service: profits from people sitting on their couches at home.

To quote The Street:

Around 11.8 million subscribers were added to the Disney+ streaming service over the three months ending in December… a tally that smashed [Wall] Street forecasts and dwarfed the 8.3 million additions hauled in by Netflix (NFLX).

Then again:

The subscriber gains, as well as a stronger-than-expected overall revenue total of $21.8 billion and profits of $1.06 per share, highlighted a spectacular earnings report that included pre-pandemic levels of activity at its U.S. theme parks and robust outlook heading into the second half of the year.

So maybe Disney is simply reflecting the new omni-channel reality – one where people want to go out when they want to go out. And they want to stay at home in their pajamas when they want to stay at home in their pajamas.

This is something my team and I have stated in various ways through various articles. And so have the real estate investment trusts (REITs) we know and love.

Many of them were preparing for such shifts well before the shutdowns ever were a thought, much less an actuality.

The World According to REITs

This morning, The Daily REITBeat gives us eight summaries of earnings reports and three additional updates.

I feature four below ( I realize I didn’t publish four yesterday, as is my standard earnings-season approach). And don’t forget to subscribe to Intelligent REIT Daily, where I’ll always provide additional information as I can.

Armada Hoffler Properties (AHH) recorded Q4 normalized funds from operations (FFO) of $0.27 per share. Whereas it set 2022 guidance of $1.11-$1.15. Same-store net operating income (NOI) rose 4.7% on a generally accepted accounting (GAAP) basis and 7.9% on a cash basis year-over-year. And stabilized operation property portfolio occupancy rose to 96.7%.
Kimco Realty (KIM) reported Q4 FF0 of $0.39 per share and set 2022 guidance at $1.46-$1.50. Pro rata portfolio occupancy rose 30 basis points (bps) to 94.4% quarter-over-quarter. And it signed 438 leases across 2.1 million square feet of rentable space. The REIT also saw a 12.9% increase in same-property NOI for the quarter over Q4-20.
Macerich (MAC) made $0.54 in per-share FFO for the fourth quarter and is guiding for $1.85-$2.05 for the full-year 2022. Its portfolio was 91.5% occupied at the end of the year, up from 89.7% in Q4-20. And same-center NOI (including lease termination income) grew 36.1% year-over-year. The company had about $622 million in liquidity when it filed the report.
Rexford Industrial REIT (REXR) announced Q4 core FFO of $0.45 per share and expects $1.77-$1.81 for 2022. Same-property NOI grew 10% year-over-year. Same-property portfolio cash NOI grew 6.8%. And its average same-property portfolio occupancy was 99%. For the full year, REXR purchased 53 properties for an aggregate $1.9 billion and sold five for $59.3 million.

And then we’ve got some major movers to talk about down below…

(Source: The Daily REITBeat)

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.

The News That Rocked the Markets

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 Reopening Loves Me. The Reopening Loves Me Not.

Brad Thomas

467 postsFebruary 10, 2022

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The Reopening Loves Me. The Reopening Loves Me Not.

467 postsFebruary 10, 2022

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