I mention this over at The Intelligent REIT Investor, my free e-letter (which you can sign up for right here.) But I want to mention it in today’s blog too.
American Homes 4 Rent (AMH) is working with Oakpointe Communities, a commercial and residential real estate developer, to open yet another single-family rental home community – this time in Black Diamond, Washington.
Riddle me this: Does this real estate investment trust (REIT) ever stop?
It’s certainly on a roll now. The newest addition is its 70th overall and seventh in the Seattle market.
Yesterday, I covered a whole lot of negative information, as well I should have. Wide Moat Research isn’t in the business of sticking its head in the sand. And so my team and I are very well aware that there’s more negative news to digest today, as evidenced by the markets being down once again this morning.
Yet I’m going to concentrate on good news anyway, recognizing that there is in fact good news to be found. And it’s just as important to share as the downside to our current situation.
Another REIT that’s looking up is SL Green (SLG). And feel free to take “looking up” literally.
It’s opened registration for a first-look opportunity inside its One Vanderbilt building, a 1,401-foot tall tower in Manhattan that’s directly connected to Grand Central Terminal. Despite social distancing concerns and lockdown mandates, the building has generated a lot of excitement and even actual leasing opportunities.
So it will be interesting to see who wants to take it up on its offer for select guests to check out Summit One Vanderbilt,” its observatory at the tip-top of this impressive structure before it officially opens.
Meanwhile, shopping center REIT SITE Centers declared a 9% quarter-over-quarter dividend increase to $0.12 per share, payable on July 2 to shareholders of record on June 10.
Again, there’s much more difficult news to deal with. And I’m not shying away from it. But reality requires celebration and optimism when called for too, so I’m calling that just as blatantly as I would anything else worth sharing.
The World According to REITs
It looks like we’re going back to more slow news days for a while, which is pretty welcome in many ways. While my team and I will still be factoring in Q1 earnings into our analysis every step of the way, let’s look at the kinds of transactions that make those quarterly reports possible…
- MGM Growth Properties (MGP) has signed a definitive agreement to purchase MGM Springfield’s real estate assets in western Massachusetts from MGM Resorts International (MGM) for $400 million in cash. The casino will continue to operate the property, with no further changes made.
- Park Hotels & Resorts (CHH) announced that Park Intermediate Holdings and PK Domestic Property, two LLC subsidiaries, priced $750 million of 4.875% senior unsecured notes due 2029 at a price that’s equal to 100% of their face value.
- Weyerhaeuser (WY) hit 82 on the Relative Strength Rating scale, where 80 or higher is considered ideal. This means its performance over the past year has topped 82% of all other stocks, REITs or otherwise.
Yesterday, you may have noticed that there was a lot more red in the REIT world than there was green. Even so, there were winners to be found, including – of all companies – The GEO Group (GEO).
You can’t say that life isn’t fascinating!
(Source: 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.
