iREIT Daily

White House Warnings, and George Soros Isn’t Impressed

Brad Thomas

467 postsFebruary 1, 2022

“This Could Be the Biggest Super Bowl Ever for Online Betting. Here’s Why,” says CNN Business.

It’s officially February, and we all know what that means. It means more cold, cold weather; Valentine’s Day shopping…

And the Super Bowl.

Actually, there might be some conflicts this year between the two big February events. Super Bowl Sunday is on February 13 and, of course, Valentine’s Day is on February 14.

How do you generate that much excitement two days in a row?

That’s a personal problem I won’t weigh in on. Here at Seeking Alpha, we’re much more focused on identifying and solving investing issues. Which is why I’ll turn our attention back to CNN:

The Los Angeles Rams or Cincinnati Bengals? No one knows what the outcome of the Super Bowl will be. But one thing seems certain. No matter who wins, sports betting companies could score financial touchdowns.
This year stands to be the biggest one yet for the industry – and that’s because it’s the first Super Bowl since New York state legalized mobile sports betting.

That doesn’t sound like a problem until we remember how even a company as big and connected and experienced as Wynn Resorts (WYNN) can’t handle that heat. Nor is it alone.

… these betting operators may need to generate big bucks in New York to turn their fortunes around… So far in 2022, like the rest of the market, most gambling stocks have not been winning propositions.

That’s because of “how much the companies are spending on advertising to attract new customers.” The customers are there, mind you, eager and waiting.

There’s just a lot of competition out there these days.

More Non-REIT News to Know About

Another CNN article that caught my attention is an opinion piece from Asutosh Padhi, managing partner at McKinsey & Company.

Since that advisory boasts many influential clients, Padhi says he speaks with U.S.-based CEOs every week. And no matter their industry or region, they keep saying the same thing:

“We’re in one of the most bewildering labor markets in a generation.
“Job openings remain dramatically higher than pre-pandemic levels. Yet the December unemployment data from the U.S. Bureau of Labor Statistics shows a disproportionate number of minorities, younger workers, and people without four-year degrees remain unemployed.”

He’s optimistic about finding ways around that ongoing problem. But according to White House Press Secretary Jen Psaki, we shouldn’t expect any such good news in January’s jobs report due Friday.

She warned about it yesterday, saying:

The week the survey was taken was at the height of the omicron spike… As a result, the jobs report may show job losses in large part because workers were out sick from omicron at a point when it was peaking.

Good to know.

We also know airlines are still struggling, with JetBlue (JBLU) specifically making for very unattractive headlines yesterday. Departing and arriving passengers at New York’s JFK Airport experienced repeated delays…

Complete reroutes…

And sitting on the tarmac for hours after landing due to reported staffing shortages.

When will these companies catch a break? I’m not sure, But such continuing disruptions aren’t doing them any favors, obviously.

My next story to share is about real estate, but not real estate investment trusts (REIT)s quite yet. China is back in the news, you see, thanks to George Soros.

The controversial billionaire criticized the Asian giant’s real estate setup at a Stanford University-sponsored event. And, like him or hate him, he makes some points worth considering…

The World According to REITs

While I don’t have access to Soros’ original transcript, here’s Bloomberg’s commentary on the speech:

The current model is “unsustainable,” he said, with buyers, using borrowed money, forced to start paying for their apartments before they were even built. Local governments derived most of their revenue from selling land at ever-rising prices, which were 30% higher in June from a year earlier, Soros said.

Over here in U.S. REIT-dom, we’re seeing some price corrections too. Which isn’t necessarily a bad thing.

We could find some bargains as earnings continue to trickle in. And here are three updates along those lines:

Alexandria Real Estate Equities (ARE) announced per-share Q4 funds from operations of $1.97 and affirmed 2022 FFO guidance at $8.26-$8.46. Same-property net operating income (NOI) rose 5% for the quarter and 4.2% year-over-year. And it bought 4.1 million square feet of key life science properties for $1.5 billion during the three months while selling $2 billion worth.
Kilroy Realty (KRC) recorded quarterly FFO of $1.05 per share with 2022 guidance of $4.35-$4.55. As of December 31, its portfolio was 91.9% occupied and 93.9% leased. And its generally accepted accounting practices (GAAP) and cash rents jumped about 20.2% and 6.9%, respectively during Q4.
Braemar Hotels & Resorts (BHR) warned its shareholders not to expect too much when it releases earnings. It will likely report a net loss for them thanks to continuing (though improving) headwinds against the lodging REIT subsector.

Also, it being February now, let’s recap yesterday’s REIT action…

(Source: The Daily REITBeat)

And January’s too…

(Source: The Daily REITBeat)

Feel free to cringe at Retail Value’s(RVI) absolute drubbing. But don’t forget that we expect good things for the larger sector. We’re still going for the REIT win this year.

Believe you me!

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.

Making Sense of Yesterday’s Spate of Economic News

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

White House Warnings, and George Soros Isn’t Impressed

Brad Thomas

467 postsFebruary 1, 2022

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White House Warnings, and George Soros Isn’t Impressed

467 postsFebruary 1, 2022

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