iREIT Daily

Everything Is Up! Just Not Necessarily in a Good Way…

Brad Thomas

467 postsOctober 14, 2021

JPM Morgan (JPM) reported Q3 earnings yesterday, and they were better than expected. But apparently they weren’t better-than-expected-enough, because the stock lost 2.64% on the announcement.

I’d say that might make Bank of America (BAC), which releases its results this morning, a bit nervous. But, at least as of this writing, the markets are all experiencing a decent little bump.

So who knows. Maybe investors will stay in a more giving mood.

What’s most definitely not so generous is energy prices. We recently discussed the rise is gasoline costs, but the Energy Information Administration is warning about other resources too.

Heating oil, for one, is projected to rise about 43% over last year. And propane? That could surge 54%.

Natural gas, for its part, is expected to increase 30% and electricity by 6%. If that’s all correct, let’s hope and pray the weather experts are wrong about the cold winter season they say we’re in for.

Though even if that’s the case, it won’t save airlines. Delta (DAL) came out yesterday to warn that rising jet fuel prices are jeopardizing its recovery. If nothing changes, it expects to post a “modest loss” this quarter as fuel costs are up $0.40 from Q3.

And speaking of airlines, we’re now hearing a different story about why Southwest (LUV) experienced such scheduling turbulence. No longer are weather and air traffic controller issues the main culprit. Or at least the Southwest Airlines Pilots Association is no longer letting corporate do all the talking.

That organization’s official stance is that the company has overextended its pilots’ physical and psychological abilities for months now. The dam simply broke over the weekend, it says, with no guarantee against similar disruptions going forward.

Rental Rates Are on the Rise

Next up, let’s turn to today’s Morning Brief, which says:

First, the (sort-of) good news: September’s consumer price index (CPI) was relatively stable, with the headline rate only marginally higher than expectations at 5.4% year-over-year. Core prices, which strip out the more volatile components like food and energy, also held steady at an annualized 4.0%, and some elements like clothing, airline fares, and used cars tumbled from historically high levels.
The bad news, of course, is that inflation is still running well above trend (and that’s even before we start factoring in… very hot energy prices). Inflation expectations are spiraling higher, and the Federal Reserve’s favored buzzword “transitory” is becoming a bit of a meme among economy watchers.
And now for the worse news: Not only is there no immediate relief in sight, but some of those component declines may not last long.

It also mentions rising apartment rent, which we all should have seen coming for so many reasons – including how landlords have to deal with inflation too.

Normally, this would be where I lead right into real estate investment trust news, but I do have one big announcement first…

My good friend Professor Jonathan Morris is getting ready to launch his Executive REIT Masterclass. This will be an eight-week deep-dive into the REIT industry, structures, strategies, and assessments, designed to specifically accommodate working professionals as well as more experienced analysts and investors.

And to do all of that, he’s using The Intelligent REIT Investor Guide as the course’s main study source!

This really ups the game and raises the bar for my book, featuring it prominently in an exceptionally professional forum. So I couldn’t be more proud.

To learn more about this opportunity, you can go to www.REITAcademy.com or watch his new movie trailer here!

The World According to REITs

As you can see below, Power REIT (PW) was right back to its buoyant self yesterday. And if the markets continue their strong start, I don’t see any reason why it won’t go on to gain back more today.

(Source: The Daily REITBeat)

Elsewhere in REIT-dom, we find that:

Terreno Realty (TRNO) sold a three-building industrial property in East Hanover, New Jersey, for $32.7 million. The set of facilities amount to about 167,000 square feet of space set on 11.7 acres, and are 88.2% leased to 32 tenants.
Easterly Government Properties (DEA) formed a joint venture with a leading global investor in order to acquire a 1.21 million+ square-foot portfolio of 10 properties through 2023. These assets are 100% occupied by the Department of Veteran Affairs, and will be sold for $635.6 million, complete with mostly 20-year leases. DEA will hold a 53% stake in the completed project.
Empire State Realty Trust (ESRT) says that iCapital Network has agreed to rent an additional 35,186 square feet of space at One Grand Central Place – more than doubling its original leased area – and add an extra six years to its previous 11-year term. The tenant will now occupy 64,537 square feet across three full floors.

That’s it for this morning, guys and gals. Let’s go out and see what we can see and get what we can get now!

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.

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

Everything Is Up! Just Not Necessarily in a Good Way…

Brad Thomas

467 postsOctober 14, 2021

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Everything Is Up! Just Not Necessarily in a Good Way…

467 postsOctober 14, 2021

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