iREIT Daily

The Piper Always Has to Be Paid

Brad Thomas

467 postsAugust 3, 2021

Six Flags Fiesta in San Antonio, Texas, will debut a roller coaster next year with the world’s steepest drop.

Dr. Diabolical’s Cliffhanger will climb 150 feet, then plummet at a 95-degree “beyond vertical” incline. That does sound like quite the ride, I’ll admit.

But can it really compare to the stomach-churning market drops we experienced last year?

I think not. Especially when the Cliffhanger experience is undoubtedly over in less than a minute versus a month+ of utter panic.

Moreover, we might be in store for more nastiness since the Biden administration has let the eviction ban expire. The 15 million+ people who fell behind on their housing rental payments can now be kicked out.

At the risk of sounding heartless, this was inevitable. The ban was going to end eventually. And then the economy was going to face the fallout.

Unless something unexpected happens from here, it seems that time has come.

Do you know what else expired as July closed? That would be the debt limit suspension. It was previously set at $22 trillion; but by the end of June, that figure had climbed another $6.5 trillion.

Now that debt will be due, sending U.S. Treasury Secretary Janet Yellen into a panic. The Week reports how she implored Congress to “‘protect the full faith and credit of the United States’ by raising or suspending” the ceiling and

“… notified leaders that the Treasury Department had begun using ‘extraordinary measures’ – or emergency cash conservation steps – to keep from breaching the federal borrowing limit after it went back into effect over the weekend, per CNBC and The Wall Street Journal.”

As this post’s title states, the Pied Piper always has to be paid. Somehow, someway.

And if you slight him long enough, that “somehow, someway” won’t be pretty.

Hospitality REIT Tenants Are Hiring

Yesterday, I had to report some unflattering news about Victoria’s Secret that could negatively affect malls. Today, I have news about another extremely beleaguered real estate investment trust (REIT) subsector.

From one perspective, it’s more promising. From another, it’s just as worrisome.

Hotel bookings in the state of Arizona are on the rise, up to 61.5% January-June. That’s 15% below what it was in 2019, but obviously very far up from 2020.

Becky Blaine, deputy director of the Arizona Office of Tourism, says that:

“About 90% of travelers say they have a trip planned in the next six months. Looking forward to fall and convention bookings, we see that a bunch of the meetings and conventions that have been postponed, moved into the fall, and so we really expect to start to see that business traveler come back as well.”

Only problem, according to Fox Business – and everywhere else – finding employees to handle that demand remains an issue. Statewide, the industry remains 33,500 jobs in the hole.

“‘We have a workforce issue, a lot of people that were displaced during the pandemic have either chosen to switch industries, or just not come back,’ said Blaine. ‘We’ve really had to work to attract new workers to the hospitality industry that maybe never considered tourism as a career.’”

Of course, I’m hoping the absolute best for them in their searches. But considering the larger employment situation here in the U.S. – where most blue-collar oriented employers are begging for workers – I’m not entirely optimistic.

Then again, who knows. Maybe the end of the eviction moratorium will have an effect on that.

The World According to REITs

We had another slew of REIT earnings reports come out yesterday afternoon. So here’s your 3+ snippets:

Monmouth Real Estate (MNR) reported shareholder-attributable net income of $17.3 for its third quarter. That’s $0.17 per diluted share, down from $0.27 in Q2-20, or $26.9 million. Funds from operations (FFO) were $11.5 million ($0.12 per), an $8.2 million in part due to the pending merger with Equity Commonwealth (EQC). Even so, it missed consensus FFO estimates by $0.02 – continuing a mildly disappointing four-quarter trend now.
Alexander’s (ALX) recorded net income at $25.9 million, or $5.05 per diluted share. It’s a significant jump over last year’s Q2 showing of $12.3 million, or $2.41 per, in part because of one particular asset sale. FFO, meanwhile, was $21.1 million, or $4.12 per, up from $18 million, or $3.51 per. That is down from Zack’s Consensus Estimate. But considering Alexander’s seven-property position in New York City, the improvement still offers obvious reason to smile.
Realty Income (O) saw net income of $124.5 million, or $0.33 per share for its Q2-21. For Q2-20, those numbers were $107.8 million and $0.31, respectively. FFO was also noticeably up from $288.3 million to $314.4 million – $0.84 per share in both cases – matching estimates. The Monthly Dividend Company added that it “collected 99.4% of contractual rent… inclusive of 98.9% collected from our theater clients,” which make up 5.4% of its portfolio.
SBA Communications (SBAC) brought in net income of $152.7 million, or $1.37 per share. And adjusted FFO (AFFO) rose 15.3% year-over-year. The company also issued $1.165 billion of Tower Securities for the quarter at a 1.631% interest rate and completed an extension and expansion of a $1.5 billion revolving credit. President and CEO Jeffrey Stoops calls Q2-21 “our best in quite some time,” with record U.S. services revenue and other reasons to cheer.

As always, get more REIT descriptions, data, and determining information right here.

(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.

VICI Is Doubling Down… Glad I Tripled Down During The Pandemic

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

The Piper Always Has to Be Paid

Brad Thomas

467 postsAugust 3, 2021

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467 postsAugust 3, 2021

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