iREIT Daily

Euphoria Abounds (Except in Bitcoin)

Brad Thomas

467 postsDecember 7, 2021

The markets finished up nicely yesterday, and they appear to be set for another surge today.

The S&P 500 closed at 4,591.67 after gaining 1.17% (53.24 points). The Dow really put on a show, ending at 35,227.03 with a 1.87% jump (646.95 points). And even the Nasdaq, which had fallen out of favor for a few days there, finished at 15,225.15, locking in a 0.93% increase (139.68 points).

(I have a few theories about why they’re so enthusiastic all of a sudden. But they’re just theories at a time when I need to cover too many actual facts.)

Bitcoin, as I mentioned yesterday, isn’t doing so hot, however. It’s down 20%+ over the past month, with very smart people – and some pretty dumb ones too, naturally – on both sides of the debate claiming victory.

Some are saying their bearish view is completely vindicated and that cryptocurrency will only fall further from here. Others believe it’s a great time to buy at discount prices.

As for me, I’ll admit to learning a lot from this sector’s bulls the past year. But I’m still staying out of the fray, content to sit on the sidelines and watch whatever ends up happening happen.

That kind of volatility just isn’t for me.

Much like being president of the New York Stocks Exchange just isn’t for Stacey Cunningham anymore, it seems. It was announced yesterday that she’s stepping down at the end of the year for undisclosed reasons.

Another major resignation for 2021. They really do seem to be piling up.

Major Shifts at the NYSE, and China Evergrande Makes a Move Too

Now, Cunningham’s departure can’t be that bad of a break considering how she’s joining the institution’s board of directors. Still, it’s interesting how the only personal commentary on the topic I can find from her is a tweet:

Congratulations to my friend and colleague Lynn Martin, who’s been named the next president of @NYSE. The exchange’s future is bright, and it could not be in better hands.

The actual press release was from Jeff Sprecher, founder, chairman, and CEO of Intercontinental Exchange, the NYSE’s parent company. And he says she’s simply “beginning a new chapter in her career.” While The Wall Street Journal reported that she “approached ICE’s leadership several months ago about moving on…”

Not even close to “incidentally,” Sprecher himself will be stepping down too. And, again, there’s no real explanation as to why.

One clue we have to at least Cunningham’s decision is how the Nasdaq is winning the IPO revenue game. It has been for three years now, exactly how long she’s led the exchange.

Still, I don’t think anyone saw this management shakeup coming. Which sets it apart from the next news story I want to touch on: China Evergrande Group. Fox Business reports how its:

… stocks and bonds fell to historic lows after Chinese authorities stepped up their involvement in the company’s affairs and the indebted developer moved closer to a reorganization of its hefty international debt.

It’s running up against the end of another 30-day grace period, this time on $82.5 million in interest payments. If it can’t pay those by Monday, it would mean an automatic default for the company.

That triggered the Chinese behemoth to agree to work on restructuring with offshore creditors. Finally.

The World According to REITs

In the good-news-for-industrial real estate investment trust (REIT) category, Amazon (AMZN) is navigating the shipping crisis by hiring private vessels. According to CNBC, that practice isn’t entirely new.

It’s the volume – and results – that’s attention-grabbing.

For years, Amazon has been quietly chartering private cargo ships, making its own containers, and leasing planes to better control the complicated shipping journey of an online order. Now, as many retailers panic over supply chain chaos, Amazon’s costly early moves are helping it avoid the long wait times for available dock space and workers…
“Los Angeles: There’s 79 vessels sitting out there up to 45 days waiting to come into the harbor,” ocean freight analyst Steve Ferreira told CNBC in November. “Amazon’s latest venture that I’ve been tracking in the last two days, it waited two days…”

Its separate system allows it to “control where its goods go, avoiding the most congested ports.”

Speaking of the online giant, we’ve got three pieces of data center news below. Today is a busier day in REIT inroads in general, with another three updates listed on today’s Intelligent REIT Daily.

But here are your selected stock stories for the blog:

Equinix (EQIX) will be expanding into Africa with its announced acquisition of MainOne. The West African data center and connectivity solutions provider has reach in Nigeria, Ghana, and the Ivory Coast for a total $320 million enterprise value. The deal should be finalized next quarter.
Iron Mountain IRM) signed a 20-megawatt lease with a U.S.-based Fortune 100 client at its VA-2 data center in Manassas, Virginia.
Digital Realty (DLR) successfully listed Digital Core REIT as a standalone vehicle on the Singapore stock exchange.

Also, if you didn’t hear, there’s a rumor that CareTrust (CTRE) is looking for a buyer. As you can see below, accurate or not, the possibility is making real short-term market waves…

(Source: The DailyREITBeat)

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.

There’s No Reason to Get Complacent Now

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

Euphoria Abounds (Except in Bitcoin)

Brad Thomas

467 postsDecember 7, 2021

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Euphoria Abounds (Except in Bitcoin)

467 postsDecember 7, 2021

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