iREIT Daily

I Didn’t Mean to Make You Mad

Brad Thomas

467 postsAugust 18, 2021

I saw some criticism for Monday’s post about Afghanistan. A commenter or two told me that Seeking Alpha is an investment platform, not a political one. Ipso facto, I should stick with investment information, not political commentary.

On the one hand, I entirely respect that perspective. That’s why I never gave you any advice last year (or ever) about who you should vote for.

And I do apologize if my presentation came across as pushy. That definitely wasn’t my intention.

What I can’t agree with is the concept that politics don’t affect our investments. Make no mistake: They do, and not just through the typical taxes we have to pay.

For better or worse, politics govern pretty much everything we do these days. From where we want to live, to how much we purchase… even to whether we’re allowed to leave the house and how we can, at this point.

If we want to be successful investors, we need to know these things. Because “these things” affect how well the companies in our portfolios can and will do.

So when I mentioned New York City’s vaccine mandate yesterday, it wasn’t to rile anyone. It was to keep you informed of the conditions – right or wrong – that our real estate investment trust (REIT) plays there are now going to have to deal with.

I wouldn’t be much of an analyst if I didn’t bring such things up.

And yes, the situation in Afghanistan can affect our holdings too. Maybe not today. In fact, probably not today.

But don’t put political allegiances before your investment knowledge.

If you do, you’ll lose out eventually every time.

The Global Landscape for Real Estate Investing

I touch on this concept in Chapter 16 of The Intelligent REIT Investor, out now and available here. Contributed to by New York University’s Scott Robinson, it reads:

“The global landscape for real estate investing continues to flatten with each passing day thanks to the kind of technological capabilities driving (or damaging) so many subsectors. News is now delivered faster. So are consumer staples and other products, as well as the flow of business capital that can be managed from your desktop or smartphone.
“This globalization isn’t new. It’s been on the forefront of investors’ minds since at least the early 2000s. What has changed is the importance and interconnectivity of countries, regions, and – perhaps even more importantly – cities. In many respects, this highlights how the long-term trend of urbanization (short- or even mid-term trends notwithstanding) is at the core of the real estate global evolution.”

Basically, it’s becoming less possible to separate our lives into simple categories: national versus international. Personal versus professional. Political versus apolitical.

Everything is interconnected.

That’s why, along with “political” news, I also share what would otherwise be non-REIT related information. Like how the Chinese government targeted 43 Chinese company-operated apps today for allegedly misusing user data and employing too many pop-up windows.

They have until August 25 to change accordingly.

Much more directly relevant is how homebuilder confidence hit a 13-month low in July. National Association of Homebuilders Chief Economist Robert Dietz says:

“While the demographics and interest for homebuying remain solid, higher costs and material access issues have resulted in lower levels of homebuilding and even put a hold on some new home sales.”

He does expect production issues will ease “over the coming months.” And perhaps he’s correct in that.

Perhaps.

The World According to REITs

All the introductory information in my blogs are supposed to lead into this REIT-specific update section. Again, these seemingly irrelevant details are designed to make you more universally knowledgeable.

That way, you can be wise about individual investments like the following:

Blackwells Capital published a commentary on the amended proposal merger between Equity Commonwealth (EQC) and Monmouth Real Estate Investment (MNR). It reads that, “EQC’s revised consideration of $19.00 on August 16… is below its original offer of $19.40 on May 4… as industrial cap rates declined approximately 30 [basis points] since EQC’s original offer on May 4… which implies EQC’s original offer should have been revised up to $21.63 per Monmouth share and EQC’s offer significantly undervalues Monmouth on all valuation measures.”
Four Corners Property Trust (FCPT) acquired two properties, one operated by National Tire and Battery and the other by Goodyear – for $2.7 million. Both are in strong retail locations in Louisiana, with one four-year lease remaining and the other a full 10. Together, they came with a 6.7% cap rate on rent minus transaction costs.
Kimco Realty (KIM) announced a $500 million at-the-market continuous offering program to raise money for general corporate purposes. That includes future property purchases.

And now that we have all that taken care of, let’s address the real reason you’re reading today’s post. The burning question of whether yesterday’s announcement by Ashford Hospitality Trust (AHT) was enough to save it from yet another showing on the worst movers list.

Well, ladies and gentlemen, the wait is over and the answer is…

(Source: 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

I Didn’t Mean to Make You Mad

Brad Thomas

467 postsAugust 18, 2021

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467 postsAugust 18, 2021

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