iREIT Daily

Walk it back…

Brad Thomas

467 postsMarch 29, 2022

I can’t deny the feeling that the world is on the precipice of an immense global conflict. I’m sure a large portion of the American population has that same feeling in the pits of their stomachs. President Biden’s comments yesterday “walking back” his previous statement don’t exactly ease my nerves. On Saturday, he declared:

“For God’s sake, this man cannot remain in power.”

Oh boy. Immediate pushback ensued as these nine words are now being noticed by foreign policy experts, members of Congress, and NATO allies as essentially fighting words. Russia already has its theory that the U.S.’s main motivation for supporting Kyiv is to ultimately topple Putin’s reign. Thomas Graham, a member of the council on Foreign Relations, responded by saying:

“Biden’s comment will only further confirm them in that belief.”

Yesterday, Biden was reading from cue cards during the White House briefing, so I can’t help but wonder if he went off the rails when he delivered Saturday’s passionate statement and the administration is now taking repercussive measures. Either way, according to The New York Times, he made clear during the briefing that

“[He] was expressing the moral outrage [he] felt toward the actions of this man… [He] was not advocating a change in policy.”

He also reassured listeners that NATO has never been more united; if Putin takes Biden’s words the same way I did, we are going to need those alliances. I’m hoping, however, that he heard Biden’s comments yesterday loud and clear and that the administration’s steps to reconcile have not been futile.

A man can dream, right?

Or, a country can hope, right?

More Non-REIT News

Although Biden “almost” advocated for WWIII on the global stage, it looks like the stock market has the same hopeful attitude that I do. Stock futures rose this morning and CNBC reported:

Futures on the Dow Jones Industrial Average rose 139 points, or 0.4%. S&P 500 futures were up 0.4%, while Nasdaq 100 futures climbed 0.3%.
The Dow and S&P 500 are each coming off three straight positive sessions. The S&P 500 has now rebounded more than 9% since March 14.

We are still being told that food shortages and inflation are set to rise, but at this present moment, there seems to be a nice calm before the storm.

China has not been so lucky. With COVID-19 outbreaks in the Jilin province, China has shut down the area to deal with the virus outbreak. As a result, there have been major food shortages. According to this morning’s article in Reuters, the city of Changchun

“apologized to its 8.5 million residents for food shortages related to shutdowns and disruption caused by COVID containment measures.
Due to COVID-19, two major wholesale food markets in Changchun have shuttered, leading to a shortfall in food supply, said the city’s deputy Communist Party secretary, Liu Renyuan, a problem aggravated by a shortage of workers that has delayed deliveries to homes.”

It seems this shortage had more to do with COVID-19 than our current global conflict. Maybe the food supply will follow our current stock futures. No need to panic just yet.

The World According to REITs

As I teased in yesterday’s blog, I am going to give you my office REIT recommendation this morning. Stealing my own words about the Orion Office REIT (ONL) from an article I wrote on Seeking Alpha:

I’m maintaining a Strong Buy, recognizing that ONL is not an income play, it’s a deep value play. For certain investors, fixated on income, I certainly understand the frustration and the reason for unloading shares.
However, I’m going to take another bite at the apple and buy more shares in the Small Cap Portfolio. This is the perfect portfolio for us, because it’s designed for medium risk investors, where most of the picks aren’t SWANs.

And here is why:

While the company does have sizeable leases coming up for renewal, the opportunity is in the hands of management and its ability to execute, and create value creation. The company employs an active asset management team, and in order to create value, it must continue to drive up the WALT over the portfolio.
As I see it, if the company had announced a 70% payout ratio (vs. 40% based on FAD), shares would be trading up right now. However, as the CFO explained on the earnings call,
“The dividend was sized to permit future growth while preserving meaningful cash flow for reinvestment into the current portfolio and for accretive investments.”

Do what you will with that piece of information. As I found out recently from a friend of mine, all of Google’s employees are being told to come back to the office. That is just one of the major companies that will be making my Strong Buy recommendation even stronger.

Last but not least, we have some updates from The Daily REITBeat:

Industrial Logistics Properties Trust (ILPT) elected June S. Youngs to its board of trustees as an independent trustee, effective immediately. With the addition of Youngs, the board now includes seven trustees, consisting of approximately 71% independent trustees, 29% women and 14% members of underrepresented communities
Ryman Hospitality Properties Inc. (RHP) announced with Stratus Properties that the anticipated closing date for the previously announced sale of Block 21 by Stratus to Ryman has been extended to June 1, 2022 as the parties complete the process of obtaining the remaining required approvals of the assumption of the property’s existing mortgage loan by the purchaser.
Pennsylvania Real Estate Investment Trust (PEI) provided an update on key activities signaling consumer and tenant demand. It commented that over 60% of the portfolio is generating sales productivity in excess of $550/sf. Leading the growth over January results were: Mall at Prince George’s, Springfield Town Center, Moorestown, Jacksonville and Capital City Malls.

(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.

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

Walk it back…

Brad Thomas

467 postsMarch 29, 2022

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Walk it back…

467 postsMarch 29, 2022

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