iREIT Daily

Danger, Will Robinson! Danger!

Brad Thomas

467 postsNovember 18, 2021

On Tuesday, November 16, my Another Day in REIT Paradise blog post was titled, “Covid Sped Up This Trend Too.” The trend in question was the automation of U.S. society.

Then, that evening, I saw this article on Yahoo Finance: “Presto Aims to Give Fast-Food Restaurants Better Customer Insight Through Data.”

Late on Wednesday afternoon, Fox Business published: “UPS Teams Up With Waymo to Test Autonomous Freight Trucks.”

And there are several more stories I see today that I’m going to discuss as well.

For starters, Presto is a company that offers restaurants labor solutions by replacing people with technology. Its website reads, “The labor shortage hurts. Technology can help.” And it promises “voice, vision, and touch technologies to quickly scale operations in an uncertain labor market.”

Already, McDonald’s, Golden Corral, Outback Steakhouse, Red Lobster, Applebee’s, Famous Dave’s, and Denny’s all apparently use it. And founder and CEO Rajat Suri told Yahoo that demand is at “hair on fire” levels.

I mean, we meet with dozens of restaurants every week. You know, C-level executives who tell us [labor shortages are] their number one problem. And it really has driven… towards automation.
More budget is going from the OpEx to labor to CapEx to automation because people see this as a long-term problem. It’s not going away anytime soon.

United Parcel Services (UPS) isn’t any more optimistic about hiring prospects considering its new exploratory deal with Alphabet (GOOG)-owned Waymo. That self-driving vehicle startup company will begin testing out a truck series this week, and UPS is all about sponsoring it.

The delivery giant says this is just an exploratory phase. And it isn’t sure how exactly to implement the technology regardless at this time.

But the ultimate goal is obvious: Drivers need not apply.

For a Venti Latte, Press One. To Speak to an Actual Human Being, Hold Forever.

That ultimate goal – only concerning cashiers – isn’t an ultimate goal any more for Starbucks (SBUX). As of today, it’s a reality on 59th Street in New York City thanks to a partnership with Amazon (AMZN) Go.

Customers will order ahead, receive a code to get into the store, and then pick up their purchase with no direct human experience options whatsoever.

Meanwhile, The Seattle Times shares that Apple (AAPL) is moving away from traditional employee tasks as well.

Apple is letting some iPhone users fix their own phones, a sharp turnaround for a company that has long prohibited anyone but company-approved technicians from fiddling with its proprietary parts and software.
The company said Wednesday that it will enable users of two of the newest iPhone models and eventually some Mac computers to get access to genuine Apple parts and tools for consumer repairs.
The shift reflects a strengthening ‘right to repair’ movement embraced by President Joe Biden and affecting everything from smartphones to cars and tractors. It’s a reaction to the infusion of software into more everyday products and the practices of manufacturers who have increasingly made those products difficult and expensive to repair.

With all due respect to Biden and The Seattle Times, I’m going to have to disagree. This likely has much more to do with businesses cutting costs and coping with these crazy, staff shortage-filled times than anything else.

In which case, we’re going to see a lot more pushes for customers to “do it yourself” rather than rely on person-to-person contact.

The World According to REITs

So far, I’ve avoided mentioning inflation today. Though I will mention how some are blaming yesterday’s markets’ misstep on that influence.

I’m not sure I buy that though considering how utterly unpredictable investor movements have been in reacting to such news.

In case you missed it, the S&P slipped 12.23 points, or 0.26%; the Dow dropped 211.17, or 0.58%; and the Nasdaq nudged down 52.28, or 0.33%.

There are two more stories I’d like to touch on before covering real estate investment trust (REIT)-specific news… the first being that 2021 Thanksgiving-ish travel numbers are only 10% below 2019’s.

The second is how Zillow (Z) got slapped with a federal lawsuit accusing it of making “materially false and/or misleading statements” and failing “to disclose material adverse facts about” its dealings.

As for individual REIT reporting, yesterday into this morning wasn’t nearly as busy as the past few days have been. But we’ve still got enough to fill up this blog’s allocated spots and Intelligent REIT Daily’s…

Armada Hoffler Properties (AHH) completed its sale of Nine East 33rd in Baltimore, Maryland, for $75 million. This is its latest move to completely exit the student housing market.
Braemar Hotels & Resorts (BHR) reported preliminary portfolio October occupancy of 62.5%. Its average daily rate, meanwhile, was around $337; and its revenue per available room (RevPAR) was about $211. That latter figure was a 12% month-over-month increase and a 13% decrease from October 2019.
Ashford Hospitality Trust (AHT) reported preliminary portfolio October occupancy of 63.7%. Its average daily rate was around $167, and RevPAR was about $106 – a 12% increase month-over-month and a 27% drop from the same month in 2019.

Here’s hoping good things for everyone’s portfolios today… no matter what mood Mr. Market ends up being in.

(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.

Another Round of Shutdowns Imposed

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

Danger, Will Robinson! Danger!

Brad Thomas

467 postsNovember 18, 2021

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Danger, Will Robinson! Danger!

467 postsNovember 18, 2021

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