iREIT Daily

This Structure Was Built to Last

Brad Thomas

467 postsMarch 11, 2022

There’s a lot to get to today – to the point where I’m absolutely certain I won’t be able to fit it all in. Yet I’m still going to take a second to mention that Amazon (AMZN) gained more than $150, or 5.41%, by the closing bell.

That took it up to $2,936.35, and it could go up even more today judging by the futures as of 6:41 a.m. Investors are clearly eager to participate in its announced 1:20 stock split – especially in the face of so much “other” information.

And by “other,” I of course mean disconcerting. Even exhausting.

For instance, on CNBC’s “Closing Bell” yesterday, Treasury Secretary Janet Yellen had this to say:

So I think there’s a lot of uncertainty that is related to what’s going on with Russia and Ukraine, and I do think that it’s exacerbating inflation. I don’t want to make a prediction exactly as to what’s going to happen in the second half of the year.

But…

We’re likely to see another year in which 12-month inflation numbers remain very uncomfortably high.

Supply chain issues are likely to continue as well, including with semiconductor chip shortages. Micron Technology CEO Sanjay Mehrotra told Fox Business that while some of that situation “will continue to improve” through 2022”…

“Parts of this will continue into 2023 as well.” He cited the automobile industry as being particularly impacted since its products are “becoming like data centers on wheels.”

Sure enough, we learned this morning that Toyota (TM) will be slashing domestic production by around 20% next month. May’s numbers will then be down about 10% from its original plan and June’s by 5%.

Considering how reliant we are on Russian and Ukrainian resources for our ultimate technological products, that’s probably not going to get any better any time soon.

More Non-REIT News You Need to Know

There are reports that the U.S., G7, and E.U. leaders will announce further actions against Russia. Biden is supposed to address it today, specifically repealing that country’s Permanent Normal Trade Relations… on top of already banning its oil, natural gas, and coal imports.

Even as-is, the World Bank says Russia is about to default on its foreign debts. And the International Monetary Fund adds that “deep recession” is looming as well.

But the traditional Western World is hardly in the clear either. Consider this Fortune headline: “Goldman Sachs Warns Russia’s War on Ukraine Could Plunge U.S. and Europe Into Recession.”

It reads:

Inflation is at a 40-year high. Energy prices are soaring. And now Wall Street is uttering the dreaded S-word – stagflation – or slowing economic growth amid a surge in prices. These macro headwinds are adding volatility to the global markets.
In successive client notes on Thursday, Goldman Sachs downgraded its growth outlook for the United States and for the European Union. Goldman analysts had particularly dire words for the latter.

They now expect 2.5% growth for the euro area, down from 3.9%; and 1.75% for the U.S., down 25 basis points. Moreover, Goldman Chief Economist Jan Jatzius warns there’s a 20%-35% chance of the U.S. entering a recession “during the next year.”

On the plus side, to quote Javier E. David from The Morning Brief, “To paraphrase Jay-Z… The market has 99 problems, but Covid-19 doesn’t seem to be one.” Not when there are so many other things to be concerned about, he adds, which is true.

When was the last time you saw a “main page” business headline about the pandemic?

The World According to REITs

So there’s that. And there’s also this: Russia has expressed optimism about continuing talks with Ukraine.

One way or the other though, I’m not veering off my investment strategy – the one that involves buying quality real estate investment trust (REIT) and other companies at fair or reduced price points.

This isn’t a fair-weather approach. It’s not one to abandon when the proverbial winds shift and the storms start coming on.

It’s made to last. It’s made to withstand. Which is why I’m moving right on with business as usual by addressing the three “laggard” earnings reports below:

Cedar Realty Trust (CDR) recorded Q4 funds from operations (FFO) of $0.57 per share. It collected 96.7% of base rents and monthly charges during the quarter and 96.5% during the year. Meanwhile, its same-property portfolio ended the year 91.8% leased. That’s up slightly from both Q3’s 91.4% and 2020’s final count of 91%. Also, same-property net operating income (NOI) rose 2.8% in Q4 and 3.4% for the full year.
One Liberty Properties (OLP) saw Q4 FFO of $0.46 per share and 99.2% occupancy. It had $16.2 million in cash and cash equivalents, and total debt of $407.8 million. The REIT also reported that, as of March 4, 2022, its available liquidity was $97.9 million.
Postal Realty Trust (PSTL) announced Q4 FFO of $0.24 per share. The REIT purchased 55 properties for around $42.8 million minus closing costs for the quarter – a figure that increased to 239 for $118 million in all of 2021. Rental income rose 39% year-over-year between October and December, and 64% between 2020 and 2021. And its 966 total properties were 99.6% occupied.

Oh, and do you remember me pointing out earlier this week how you never know when there’s going to be a larger list of REIT updates?

You know what to do!

(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.

Did Tom Brady Put Some Pep Into Mr. Market’s Step This Morning?

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 Structure Was Built to Last

Brad Thomas

467 postsMarch 11, 2022

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This Structure Was Built to Last

467 postsMarch 11, 2022

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