iREIT Daily

The Trade World Tightens to an Even More Frightening Degree

Brad Thomas

467 postsMay 26, 2022

For the last several years, global trade has taken a hit in multiple ways.

During the pandemic, many economies experienced shipping delays, labor scarcities, and logistics restrictions. Before that, trade disputes between the U.S. and China put a squeeze on supply chain movement.

And now the Russian war is wreaking further havoc on the global imports mechanism.

In fact, sanctions and shipping setbacks have played a major part in our inflationary economic climate overall. Especially when you factor in the impediments of energy exports, we’re seeing struggles across nearly every market sector from commodities to cryptocurrency.

Nor is the pain set to stop any time soon that I can see.

Just when we thought we may have reached peak inflation potential, a new compounding problem is plaguing our global trade infrastructure. In the wake of all this rising inflation, many countries are now curbing exports in order to quell domestic frustrations over rising inflation.

From The Wall Street Journal:

“Countries around the world have enacted a wave of export curbs on food since the start of the Ukraine war, a trend that economists say risks aggravating shortages and global food-price inflation.
“On nearly every continent, nations have put new restrictions and bans on products ranging from wheat, corn, and edible oils to beans, lentils, and sugar. Lebanon has even banned the export of ice cream and beer.”

Essentially, our global problems have prompted many countries to save their own supplies of essential exports to reduce prices at home. And while this may work in the short term, it rarely works out for long – as many farmers will switch up their crop production to get better prices from a global market.

According to the International Food Policy Research Institute, 26 countries have already restricted staples like beef, corn, rice, soybeans, potatoes, olive oil, and even eggplants. The global implications of these restrictions could easily be calculated by anyone in an economics 101 course.

Worse yet, there’s nothing we can really do about this.

Unlike tariffs, taxes, and sanctions, export restrictions on commodities aren’t covered by the various World Trade Organization commitments.

According to an index published by the Food and Agriculture Organization of the United Nations, global food costs last month were 30% higher than they were in 2021. Meat prices were up 17%, cereals and grains were up 34%, and edible oil prices were 46% higher.

And, knowing full that these numbers could intensify as inflation rises throughout the world, it’s looking more and more like every country for itself.

More Non-REIT News to Know About

In my coverage of the $44 billion Twitter (TWTR) takeover, I’ve reported on Elon’s purchase decision, the backlash it sparked, and the subsequent (though murky) legal fallout in terms of NDA violations.

But today, the spotlight, it seems, is on the OG of the Twittersphere – founder Jack Dorsey.

Effective as of yesterday, Dorsey tendered his resignation from Twitter’s board of directors. Many people predicted that move last fall when he stepped down as CEO, but still…

Talk about timing.

Dorsey is a good friend of Elon’s and has even encouraged the eccentric billionaire on his quest to take over the social media platform. Whether this last move was made to recuse himself against the outcome of Elon’s occupation, we cannot be certain.

In a tweet last month, Dorsey explained:

“Elon’s goal of creating a platform that is ‘maximally trusted and broadly inclusive’ is the right one. This is also @paraga’s goal, and why I chose him. Thank you both for getting the company out of an impossible situation. This is the right path… I believe it with all my heart.”

No matter how you interpret that, I guess this is goodbye for the last Twitter founder with any official influence on the company. A new day is on the horizon, whatever it might bring.

The World According to REITs

Canada-based Dream Industrial Real Estate Investment Trust (DIR.UN) just released an update on environmental procedures to usher in a net-zero initiative across the entirety of its property portfolio.

Within this, it’s established a Green Lease Program that includes commitments to:

Tenant energy disclosures
Responsible construction practices
On-site renewable energy sources
Tenant training and cost recovery clauses for energy efficiency upgrades

Recently, the U.S. Department of Energy’s Better Buildings Alliance recognized the REIT with

Gold Level status as part of its Green Lease Leaders program.

Here’s what the company wrote:

“‘We are pleased to be recognized by GLL for our significant efforts in driving sustainability initiatives across our portfolio,’ said Alexander Sannikov, chief operating officer of Dream Industrial REIT. ‘We continue to incorporate sustainability into our investment decision-making, which allows us to further enhance the quality of our portfolio and business.’”

As the real estate environment becomes ever more independent from non-renewables, these immediate actions will have great impacts on your long-term investments. Sure, it may cost something in the short term. But with the advances in energy-efficient solutions, there’s never been a better time to build, lease, and operate responsibly.

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.

TGIF! And a Few Other Things to Celebrate!

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 Trade World Tightens to an Even More Frightening Degree

Brad Thomas

467 postsMay 26, 2022

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The Trade World Tightens to an Even More Frightening Degree

467 postsMay 26, 2022

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