iREIT Daily

The Space-Race Spat Continues

Brad Thomas

467 postsSeptember 9, 2021

I’m going to start out with some gossip for two reasons, both of them exceptionally professional:

I find it entertaining.
I brought it up before because I found it entertaining. And follow-up is important.

Now that I’ve established my exact very intellectual reasons for bringing up the Jeff Bezos/Blue Origin-Elon Musk/SpaceX drama, here’s the latest installment of that spat…

Yesterday, Amazon (AMZN) filed an FCC complaint that SpaceX isn’t playing by the rules.

Whether it is launching satellites with unlicensed antennas, launching rockets without approval, building an unapproved launch tower, or re-opening a factory in violation of a shelter-in-place order, the conduct of SpaceX and other Musk-led companies makes their view plain: Rules are for other people, and those who insist upon or even simply request compliance are deserving of derision and ad hominem attacks. If the FCC regulated hypocrisy, SpaceX would be keeping the commission very busy.

So, essentially, Bezos tattled on Musk, who hasn’t responded yet as far as I know.

In all fairness, Musk also filed against Amazon last week (when I first brought up the fight), saying it was deliberately and illegally trying to “slow down competition.”

And who says that business is dull and boring?

Bring on the games!

Speaking of games, Chinese regulators are back at it. And everyone know they already won. There’s no point in being in the ring against them.

Beijing says it will not be approving any new video games for the time being, sending effected stocks tumbling.

This all makes me wonder about Chinese real estate investment trusts (REITs), which were just legalized this year. Right now, I haven’t heard a peep about them being on any future targets list. But that’s no guarantee of anything these days.

“Bill Gates” Now Owns Most of This Hotel Chain

In news that much more immediately touches the REIT world, Bill Gates is buying into Four Seasons Hotels and Resorts.

His Cascade Investment LLC will pay $2.21 billion for a 23.8% stake of the company – half of Saudi Arabian Prince Alwaleed bin Talal’s ownership – giving it a 71.3% controlling position.

That’s an intriguing move by an intriguing individual in an intriguing (read: badly damaged) industry.

I imagine that someone as business savvy as Bill Gates knows exactly what he’s doing, however, risks and all. And I also find it interesting how the announcement coincides with a speculative hospitality recommendation of my own.

Ryman Hospitality (RHP) is the owner of such luxurious resorts as Gaylord Opryland in Nashville Tennessee… Gaylord Palms Resorts near Orlando, Florida… Gaylord Texan Resort near Dallas, Texas… and Gaylord National Resort outside Washington, D.C.

Here are some of its current highlights:

Group business activity is coming back, including with about 66% of group room nights rebooked that were previously “Covid cancelled.”
Its Grand Ole Opry in Nashville, Tennessee, sold 80% of its available seats in June alone, including four full-capacity, sold-out shows.
RHP expects its hotel and entertainment segments to deliver positive adjusted earnings before interest, taxes, depreciation, and amortization for real estate (EBITDAre) this quarter.
Monthly cash flow should be between $16 million and $19 million for the same three-month period.

The company doesn’t have a dividend yet, admittedly. And it’s only now beginning to eke out positive cash flow. So you do want to play this one cautiously if you play it at all.

It’s a risk we’re willing to take. But make sure to do your due diligence before you make a move.

The World According to REITs

Now onto REITs themselves.

The last 24 hours turned out to be fairly busy, with multiple companies announcing public offerings and other investment opportunities. The list involved Digital Realty (DLR), VICI Properties (VICI), AvalonBay Communities,and Agree Realty (ADC).

In addition:

Urstadt Biddle Properties (UBA/UBP) reported Q3-21 funds from operations of $0.36 per share – up from last year’s $0.24. It says it collected 92.8% of total base rent, common-area maintenance charges, and real estate taxes payable for the quarter (through July). And it has $23 million in cash and cash equivalents on the books. 91.2% of its consolidated portfolio gross leasable area was leased by quarter’s end.
EPR Properties (EPR) saw Fitch affirm its BB+ issuer default rating and raise its outlook from negative to stable.
Preferred Apartment Communities (APTS) closed on its Armour Yard office portfolio sale in Georgia. The aggregate purchase price was $79.5 million for net proceeds of about $31.1 million. APTS will use the money to pay off property level debt and similar closing costs, then use the remainder to redeem 36,926 shares of its 6.00% Series A redeemable preferred stock on September 13 at $1,002.17 per share.

So there you go for the past 24 hours. Let’s see what the next round will bring our way!

(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.

Follow The Path Of Least Resistance

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 Space-Race Spat Continues

Brad Thomas

467 postsSeptember 9, 2021

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The Space-Race Spat Continues

467 postsSeptember 9, 2021

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