iREIT Daily

Monmouth Has a New (Sure-Thing?) Buyer!

Brad Thomas

467 postsNovember 5, 2021

The battle of the billionaires continues, with Jeff Bezos and his Blue Origin taking a significant hit yesterday.

A Court of Federal Claims dismissed his complaint against rival Elon Musk’s SpaceX. As such, that company can proceed with its Artemis project NASA contract – to return to the moon – which was first signed in April.

Blue Origin, which had also bid for the contract, first argued that SpaceX received insider help to gain an edge. But that claim was rejected in July.

So Bezos tried again, suing NASA over allegations that SpaceX’s proposed way of doing things presented major safety issues.

I definitely have my bias in this whole thing. But, really, it’s both grown men’s lack of maturity that keeps me coming back for more. Like Musk’s tweet to the lawsuit conclusion: “YOU HAVE BEEN JUDGED!”

The man clearly knows his caps lock.

So yes, this is an entertainment factor update with very little to do with anything else business related. Then again, I figure we could use some entertainment these days, so let the fight continue… as I’m sure it will.

Speaking of speculative stocks (sorry, Elon), Peloton (PTON) just cut its full-year 2022 guidance… which prompted investors to cut it as well. Shares plunged 32% in premarket trading on the “softer than anticipated” projection.

Peloton was expecting $5.4 billion originally but dropped that down to $4.4 billion to $4.8 billion. “The primary drivers of our reduced forecast,” it acknowledged in a letter to shareholders, “are a more pronounced tapering of demand related to the ongoing opening of the economy and a richer-than-anticipated mix of sales to original bike.”

Let me translate that into real estate investment trust (REIT) terms. People are returning to gyms and other experiential venues after all.

Can Industrial Logistics Properties Trust Seal the Monmouth Merger Deal?

Here’s some more good news I can share. The Labor Department released its October jobs report, which showed payrolls rose by 531,000 – 131,000 jobs better than expected. And the unemployment rate dropped to 4.6%.

Plus, in the middle of all our supply shortages, some reports are noting that made-in-the-U.S.A. activity is increasing. That could ramp up further from here considering continuing predictions that we’re in for at least another seven months, if not 12, before we get current supply issues resolved.

Admittedly, all that kind of shutdowns-caused chaos has only ramped up REIT merger activity… which has now hijacked the waning days of Q3 earnings season.

By that I mean Monmouth (MNR) is back in the news today. It seems Industrial Logistics Properties Trust (ILPT) will be buying it out in an all-cash, debt-including deal valued at $4 billion.

If, of course, Monmouth’s shareholders approve of this latest buyout attempt. Who wants to place a bet on this one?

And here are the REITs that reported earnings since our Thursday communication. Take a deep breath, and here we go.

Alexander & Baldwin (ALEX), American Homes 4 Rent (AMH), and Apple Hospitality REIT (APLE)…

Saul Centers (BFS), Cedar Realty Trust (CDR), and CatchMark Timber Trust (CTT)…

CubeSmart (CUBE), Physicians Realty Trust (DOC), and DiamondRock Hospitality (DRH)…

Federal Realty Investment Trust (FRT), The Howard Hughes Corporation (HHC), and Healthcare Trust of America (HTA)…

INDUS Realty Trust (INDT), Kimco Realty (KIM), and Omega Healthcare Investors (OHI)…

One Liberty Properties (OLP), OUTFRONT Media (OUT), and Phillips Edison & Company (PECO)…

Plymouth Industrial REIT (PLYM), Regency Centers (REG), and RLJ Lodging Trust (RLJ)…

Sunstone Hotel Investors (SHO) Service Properties Trust (SVC), Ventas (VTR), and Welltower (WELL).

And breathe out.

The World According to REITs

Out of that lengthy list, let’s go with the following four to feature:

American Homes 4 Rent reported $0.35 in Q3 per-share funds from operations (FFO) and raised its full-year guidance from $1.29-$1.35 to $1.34-$1.38. Same-store core net operating income (NOI) rose 8.2% year-over-year, while single-family property rents jumped 6.6% to $245.5 million. Same-home occupancy did drop from $98.2% at the end of June to 98% at the end of September.
Physicians Realty Trust announced FFO of $0.26 per share, with new investments of $108.9 million. And it sold two hospital-leased administrative properties for about $27.4 million with around a $4.8 million net gain. Same-store medical office building (MOB) NOI grew 2.5% year-over-year.
OUTFRONT recorded a 41.4% year-over-year increase in revenue. Its liquidity at quarter’s end was comprised of $510.3 million with $498 million left available on its $500 million revolving credit facility. $232.5 million common shares remained available under its at-the-market equity offering program since it didn’t sell any in the past three-month period.
Welltower saw normalized FFO of $0.80 per share and expects $0.78-$0.83 for Q4. It signed definitive agreements to purchase four seniors housing portfolios for $1.3 billion in pro rata gross investments. And it formed a long-term strategic partnership with Kisco Senior Living on top of its existing relationship to build two premium facilities.

That’s what you’ve got for the end of the week! Though, as usual, there are three separate update stories being told over at Intelligent REIT Daily.

Earnings season might be at its end, but there’s always something else going on to stay up-to-date about.

Now’s the time to know!

(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.

Another REIT M&A Announcement

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

Monmouth Has a New (Sure-Thing?) Buyer!

Brad Thomas

467 postsNovember 5, 2021

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Monmouth Has a New (Sure-Thing?) Buyer!

467 postsNovember 5, 2021

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