iREIT Daily

As Russia Turns

Brad Thomas

467 postsFebruary 16, 2022

And…

Back we go again. Yesterday, the markets were up, up, and away on enthusiasm that the Russia-Ukraine tensions had subsided.

The S&P 500 gained 69.40 points, or 1.58%. The Dow rose 422.67 points, or 1.22%. And the Nasdaq took on an extra 348.84 points, or 2.53%.

Take that, bears everywhere! The bulls are back, baby!

And so they were. Yesterday. Truth be told, nobody knows whether they’ll be able to make more progress or even keep the ground they gained back.

As one Fox Business headline reads this morning (around 7:00), “Stock Futures Slip as Ukraine Tensions Continue.” Apparently, analysts are warning everyone not to get too cozy quite yet.

There’s still a lot to be sorted out at the border, they say, and tensions could easily flare up all over again.

The articles also adds that, “Traders will be watching reports on retail sales, import and export prices, and industrial production” this week. Yet, again, who knows whether any of that will actually affect short-term-minded investors decisions.

As I wrote yesterday:

You gotta love reporting during such tumultuous times. It can change on a dime, and woe to anyone who thinks they’ve got the minute-to-minute answers.

I don’t care whether those “anyones” fall on the right or the left of the analytical aisle. It’s a fool’s game regardless.

Take the Yahoo Finance headline that reads, “European Stock Markets Advance as U.K. Inflation Hits Fresh 30-Year High.” Those two pieces of news don’t normally mesh, yet there they are anyway.

More Non-REIT News to Know About

Alright then. What else do we want to know about today’s business world?

I’d say that Airbnb (ABNB) reporting $55 million in Q4 profits deserves to be mentioned, especially considering its intense loss in Q4-20. According to the company, bookings were especially up in smaller towns and out-of-the-way areas. But even urban areas were seeing a revival of interest.

As such, revenue came in higher than 2019 levels as well.

Fox Business adds:

The company predicted that bookings and prices will rise again in the first quarter because of strong demand for travel. Together, the company said, those trends will boost first-quarter revenue to between $1.41 billion and $1.48 billion, well above the $1.23 billion forecast in a Fact Set survey of analysts.

And:

Airbnb said the omicron variant of Covid-19 had less effect on bookings and cancellations than last year’s delta variant. Virus cases are still at high levels in the United States, but the San Francisco-based company said summer bookings made by the end of January were running 25% ahead of the same time in 2019…

This recalls yesterday’s blog post again, where I cited marketing Professor Tim Calkins of Northwestern University’s Kellogg School of Management. Commenting on Sunday’s Super Bowl ads, he concluded that “Americans are fatigued by the pandemic and are looking forward to brighter days ahead.”

The Airbnb data seems to strongly support that thesis.

In less-cheery business news, a Chinese court ordered 640.4-million-yuan worth of assets held by an Evergrande Group subsidiary to be frozen. This is after a state-owned construction company sued it for overdue construction fees.

Considering the hundreds of billions of yuan Evergrande owes in all, that’s nothing by itself. But it could be the start of other successful suits going forward.

Which wouldn’t be good. Obviously.

The World According to REITs

This morning, we’ve got four earnings-specific reports to sum up with another three mentioned in Intelligent REIT Daily… and another one – plus other updates – at iREIT on Alpha.

You just never know when the REITs news will come rolling in.

For today’s blog, we’ll feature:

Gladstone Commercial (GOOD) announced Q4 funds from operations (FFO) of $0.40 per share. It collected 100% of its base rent last year and bought 11 industrial properties, each fully leased. Their total rentable space is around 0.9 million square feet, they cost $99.7 million all told, and their weighted average capitalization rate was 7.03%. The company also sold three non-core properties for $9.5 million.
Industrial Logistics Properties Trust (ILPT) recorded per-share Q4 FFO of $0.49. It leased 1.564 million square feet in combined new and renewed contracts. And its balance sheet featured about $29.4 million in cash and cash equivalents by year’s end, along with $568 million available on its revolving credit facility.
Invitation Homes (INVH) set its 2022 per-share FFO guidance at $1.62-$1.70 and announced Q4 FFO of $0.39. Same-store net operating income rose 12.6% year-over-year during the quarter, and same-store core revenue rose 9.5%. Meanwhile, same-store core operating expenses were 3.1% higher. The REIT averaged occupancy of 98.1% for the full year, a significant increase over 2020.
Welltower (WELL) reported Q4 normalized FFO of $0.83 per share while setting Q1-22 guidance at $0.79-$0.84. Its seniors housing operating portfolio same-store revenue grew 4.8% year-over-year. And it completed $1.5 billion of pro rata gross investments: $1.4 billion worth of acquisitions and loan funding, and $142 million in development funding. The REIT also sold 11.3 million shares of common stock during the quarter for total gross proceeds of about $961 million.

Like the larger markets, REITs largely went up yesterday. Though a 13.02% single-day gain still deserves a “Wow”… with the reminder that we don’t live for single-day gains. We’re in it for the long haul.

(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.

Commitment Is for Commoners, Not the Fed

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

As Russia Turns

Brad Thomas

467 postsFebruary 16, 2022

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As Russia Turns

467 postsFebruary 16, 2022

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