iREIT Daily

World Bank Worries Over Russian War

Brad Thomas

467 postsApril 28, 2022

For months, we’ve watched as the war between Russia and Ukraine has upended the accord of Eastern European power politics. The fallout has had global effects in terms of oil scarcity and supply chain disruptions… and now the World Bank is predicting a catastrophic price shock.

In a new estimate, the bank says that all the disorder caused by the conflict will contribute to huge price increases for goods like gas, wheat, and cotton.

Peter Nagle, a senior World Bank economist and co-author of the report, says the increase in prices, “is starting to have very large economic and humanitarian effects.”

“We’re particularly worried about the poorest households since they spend a larger share of income on food and energy, so they’re particularly vulnerable to this price spike,” Nagle said.

The World Bank currently estimates increases in energy prices up to 50% which will in turn cause massive inflation across the entire spectrum of household staples like food, clothing, etc.

Of course, the largest spike will come from natural gas. And while we reported increases in this area may peak in April, many estimate that crude oil will remain at least 15% higher from here out.

From BBC:

Russia produces about 11% of the world’s oil, the third biggest share, but the report said “disruptions resulting from the war are expected to [have] a lasting negative effect” as sanctions mean that foreign companies leave and access to technology is reduced.
Russia currently provides 40% of the EU’s gas and 27% of its oil, but European governments are moving to wean their countries off of supplies from Russia. That has helped push up global prices by creating more demand for supplies from elsewhere.

Sadly, it’s not just Europe having to contend with these huge inflation metrics. Here in America, gasoline is averaging over $4 a gallon—and the trickle-down effect is causing an uptick in costs across the board.

Of course, as the CPI hits all-time highs, our dollar is worth less and less. Now, more than ever, it’s important to put your money into assets with appreciation potential. Otherwise, we remain vulnerable to the impulses of a global economy and the inflation that comes with it.

If the World Bank holds any clout within the context of our economy here in America, I would heed these warnings and start investing wisely.

Other Non-REIT News to Know About

Fake Meat & McDonald’s: The Perfect Partnership

On the lighter side of things, Beyond Meat enjoyed a surge in its share price after rumors of a permanent partnership with McDonald’s made the rounds.

Speaking at Fast Company’s Most Innovative Companies Summit, McDonald’s Global Chief Marketing Officer Morgan Flatley claimed the customer dining experience will “dramatically change” in the coming years, and will probably comprise “very established products” with Beyond Meat that stem from the “McPlant” partnership.

Beyond Meat (BYND) finished 7.6% higher yesterday at $38.22, after climbing up to 21% earlier in the day.

So, it seems the sway of the world’s most significant fast food source is far from fading. This, even after the super-sized corporation’s own stock slid nearly 5% in the past week. All hail the Hamburglar.

The World According to REITs

Two REITs to Kill Inflation

In our world of record inflation, an old real estate adage rings truer than ever: “You simply cannot create more land.”

Yes, one of the best deflationary assets of all time is real estate, but sadly, many investors have a hard time getting their hands on much outside of homeownership. This is where REITs come in.

As we experience the worst inflation conditions since the 1980s, the value of REITs will only increase because they are one of the best hedges against inflation anyone can have. Other factors like record-low mortgage interest and higher rent prices are making REITs more attractive every day.

Here, I want to outline a couple of REIT picks that could insulate your portfolio from the influence of inflation and its effects on the stock market.

Let’s take a look:

Global Medical REIT (GMRE)

Global Medical REIT is a net-lease medical office REIT that acquires purpose-built healthcare facilities and leases them to strong healthcare systems. With a 5.58% distribution, this company delivers smart, risk-adjusted returns by investing in an industry that really isn’t going anywhere. I picked them for a couple of reasons but mainly because they’ve got solid fundamentals and seem to be growing rapidly, with nearly 4.5 million leasable square feet and a market capitalization of $1.2B.

Honestly, I think these guys are just in the early era of what will be a much bigger picture.

W.P. Carey (WPC)

W.P. Carey invests in properties leased to single tenants via NNN leases. As one of the highest-yielding REITs on the market, WPC boasts one of the largest diversified net lease portfolios in the game. It has over 45 years in the industry and it’s a pioneer in the leaseback space.

For these reasons, it’s a favorite of mine for not only great long-term investment potential but as a killer inflation insulation tool as well. Get some!

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.

The Disney/Florida Feud Continues

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

World Bank Worries Over Russian War

Brad Thomas

467 postsApril 28, 2022

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World Bank Worries Over Russian War

467 postsApril 28, 2022

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