iREIT Daily

This Should Be Absolutely Outrageous

Brad Thomas

467 postsAugust 26, 2021

We’ve got a bunch of real estate investment trust (REIT)-related – or perhaps the right word is “adjacent”? – information to share this morning. And, for reasons only known to me, I’ll start with the least relevant.

I’ve already explained that REITs aren’t being directly affected by the eviction moratorium. That’s mainly a mom-and-pop landlord problem. Even so, I will continue reporting on the issue as new information comes out.

The latest piece is the Treasury Department’s press release yesterday, which read:

More than 340,000 households received nearly $1.7 billion in rental and utilities assistance [in July], a roughly 15% increase in households served compared to June, and more than double the number of households served in May.

That means close to 90% of the federal rental assistance funds is still sitting somewhere other than its millions of intended destinations.

That’s a sad state of affairs, but perhaps not so surprising. And, ridiculously enough, I’m not even shocked by this next recap either. The housing market has gone entirely insane. Yet it’s been insane for so many months now that even the stupidest stories coming out feel rather “ho-hum.”

Consider how CNBC reported that a four bedroom, two-bathroom California home sold for $1 million, $150,000 over the asking price. More striking still – again, I won’t use the word “shocking” or even “surprising” – is how the place is currently uninhabitable after being badly burned last year.

No problem though! Because it had multiple offers right away and sold days after being listed. I’m pretty sure that’s the dictionary definition of insanity.

Then again, I guess that’s also the definition of 2021.

A Little More “REIT-Adjacent” News

Now, the housing market does affect REITs. Obviously, the more populated and popular a place is, the more commercial real estate it’s going to need to operate.

So I’m absolutely sure REIT CEOs are paying attention to all of this. But, depending on the subsector, I’m equally sure they’re even more aware of other details.

For instance, office REITs have to know about the latest announcements about which companies are delaying their office returns. Again.

Ford Motor Co. (F) is among them, as evidenced by its press release:

While we continue to prepare our non-site dependent team members to transition to a hybrid work model, the state of the Covid-19 virus remains very fluid and therefore we are adjusting the start of our hybrid work arrangement to no earlier than January 202. In the interim, we will continue monitoring the virus and, as conditions improve, explore opportunities for team members to return on-site for collaboration and teamwork.

Big banks Goldman Sachs (GS), Credit Suisse (CS), and Morgan Stanley (MS) made announcements this week as well. The former has decided that anyone – including visitors – who enter its buildings must be fully vaccinated by September 7. Employees who aren’t will have to work from home.

Morgan Stanley’s requirements are similar, though it hasn’t actually announced any real dates about returning to the office. And the same onsite requirements will apply to Credit Suisse, which nonetheless wants business to go back to normal mid-October.

The World According to REITs

I’m going to share one more news story before getting down to our specific REIT insights.

Yahoo Finance reported this morning that buybacks are back, which is a very big deal. As it writes, “In the years before the Covid-19 pandemic, one of the biggest sources of buying power in the stock market were the companies themselves.”

That changed last year, with the utter uncertainty of the economic and political situation keeping companies wary. But management teams can now do much more “than hunker down to survive.”

“Data from Bank of America Global Research published Tuesday showed that, last week, corporations spent the most repurchasing their own shares in more than five months.”

Does that mean we’re out of the woods when it comes to wondering about a healthy stock market?

It’s a definite positive sign, and I’m happy to see it. All the same, the markets are still grossly overvalued and becoming more so every day. And even if they weren’t, we’d still want to focus on quality and value in every purchase we made.

I’m sure the following companies were thinking the same as they made these latest moves:

Four Corners Property Trust (FCPT) acquired eight strategically placed Tires Plus properties across Georgia for $12.9 million. It also purchased an O’Reilly Auto Parts facility in Illinois for $2.3 million with five years left to its term.
Monmouth Real Estate Investment (MNR) bought a new 259,053 square-foot industrial building in Kodak, Tennessee, for $34.4 million. The facility is net-leased to FedEx for the next 15 years.
Ashford Hospitality Trust (AHT) – yes, that Ashford Hospitality Trust – refinanced its mortgage loan for the 390-room Hilton Boston Back Bay. It also announced that it only has one significant final debt maturity coming due next year, which has now been addressed.

So there you have it. Here’s hoping the best for you this Thursday, both in investing and life in general.

(Source: The Daily REITBeat)

Happy Investing

Brad Thomas

467 posts

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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.

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

This Should Be Absolutely Outrageous

Brad Thomas

467 postsAugust 26, 2021

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This Should Be Absolutely Outrageous

467 postsAugust 26, 2021

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