iREIT Daily

What Happened in Kentucky Should Affect Us All

Brad Thomas

467 postsDecember 13, 2021

To any readers impacted by this weekend’s tornados, I want to start out by offering my most sincere sympathies.

My own southern state wasn’t touched. But I know from personal and local experience the havoc even a “regular” tornado can cause. And there was nothing regular about the ones that ripped through especially Kentucky on Friday night into Saturday morning.

There, Governor Andy Beshear has warned that the final death toll could be higher than 100. After all, there was a candle manufacturing factory that got directly hit with up to 110 people in it at the time.

Tornados also appeared in Tennessee, Arkansas, Mississippi, and Missouri. And another one touched down in Illinois, hitting an Amazon (AMZN) warehouse, resulting in at least six casualties.

The structural damage alone from some of these places are painful to see, with utterly flattened buildings and homes. Here’s just one portion of one report from The Courier Journal:

“On Sunday, in Mayfield [Kentucky], chainsaws and dozers buzzed amid the hum of generators in some twister-ravaged neighborhoods. Downtown, a drug store had gotten power with the help of a generator, temporary bathrooms were set up, and a food truck was serving chicken.
“Utility crews worked on power lines. Rescue efforts continued at the candle factory site, which National Guard members in Humvees barred people from entering. Members of the Guard also broke into small groups and went door to door checking on residents. Smashed churches held Sunday services in loaner chapels.
“With electricity, water, and gas still off for many residents, some moved their families to shelters, including at a warehouse in the nearby town of Wingo…”

In short, lives have been upended, if not ended altogether. And Wide Moat Research extends its most sincere sympathies to all those involved.

Today’s Non-REIT Business News to Note

In the business world, investors are waiting this week to see how the Federal Open Market Committee meeting goes. That gathering begins on Tuesday and concludes on Wednesday, complete with a public statement about any decisions determined.

We can also expect a December statement and an updated Summary of Economic Projections that tries to look forward a few years. Many people expect Federal Reserve Chairman Jerome Powell to announce an increased tapering program due to inflation.

Speaking of things that are headed higher, Berkshire Hathaway (BRK-A)(BRK-B) Vice Chairman Charlie Munger told the Sohn Hearts & Minds Investment Leaders Conference that today’s stock market environment is “even crazier than the dot-com era.”

“I just can’t stand participating in these insane booms. There’s no great company that can’t be turned into a bad investment just by raising the price.”

I’ve read your comments about Munger in previous blog posts. So I know some of you don’t think the most highly of him – particularly when it comes to his cryptocurrency commentary.

Duly noted.

But while I agree overall that the man isn’t perfect… I have to say he hit the nail on the head with that particular statement. Basically, just watch your back and your bottom line.

You never know what may happen next.

For example, who predicted famed British chef Gordon Ramsay relocating his North American restaurant headquarters from California to Texas? Yet that’s what’s reportedly happened after he hired a team to expand his brick-and-mortar reach.

They recommended opening up 18 new restaurants across the U.S. in the short-term and an eventual 75 total in the next five years. And, the way they calculate it, it will be easier and more profitable to operate that expansion from Texas.

The World According to REITs

The Daily REITBeat offers us exactly six updates today, which is perfect to cover the three possible spots open here…

And the three spots open over at my free e-letter, Intelligent REIT Daily. (Which, of course, you can sign up for right here.)

So here are your Another Day in REIT Paradise selections:

American Campus Communities (ACC) got involved in some (probably unwanted) activist activity. Land & Buildings Investment Manager sent an open letter to shareholders, calling for a changeup on the board. Based on what it calls consistent financial and share-price underperformance, it wants to see “additional fresh perspectives” involved in the company’s direction.
CTO Realty Growth (CTO) says its Daytona Beach-encompassing joint-venture sold the remaining 1,600 acres for $66.3 million it held. The resulting $24.4 million in estimated proceeds to CTO will go toward paying down its unsecured revolving credit facility and toward general corporate and working capital purposes.
Kilroy Realty (KRC) says it signed an eight-year lease in November with a major media company for 80,000 square feet at an L.A. property. Year-to-date, it’s leased more than 1.1 million square feet of office and life science space. Seventy percent of that is with new tenants, with cash rents rising 8% in those cases.

On that last one, while some companies are clearly fleeing California – as with the previously mentioned Dave Ramsey – others are clearly willing to take it on for all it’s worth. Really, it’s a give and take that can’t be so easily quantified, at least as of today.

(Source: The DailyREITBeat)

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.

There’s No Need To Disparage Dividends, Despise Greed Instead

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

What Happened in Kentucky Should Affect Us All

Brad Thomas

467 postsDecember 13, 2021

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What Happened in Kentucky Should Affect Us All

467 postsDecember 13, 2021

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