iREIT Daily

GDP Misses, Amazon Disappoints, and Digital Realty Shines

Brad Thomas

467 postsJuly 30, 2021

So…

Yesterday, we found out that U.S. GDP didn’t grow nearly as much as expected for the second quarter. Economic experts were calling for an 8.4% uptick over Q1.

Instead, it came in at 6.5% growth.

Considering all the factors involved, those are pretty disappointing results. As Yahoo Finance writes:

“The headline print in quarterly GDP missed the mark even as consumer spending, the biggest component of U.S. economic activity, exceeded expectations. Personal consumption rose at an 11.8% rate in the second quarter, unexpectedly accelerating from the first quarter’s 11.4% growth rate and handily topping expectations for a 10.5% increase.
“Heading into Thursday’s report, the Commerce Department’s monthly retail sales figures grew in April and June during the quarter and have held markedly higher on a year-over-year basis since the summer of last year. These positive trends in consumption though are seen decelerating going forward after government-issued stimulus checks turbo-charged consumer spending at the start of the year.”

What ultimately dragged GDP this time around was net exports – with the second-largest U.S. merchandise trade gap on record – and government consumption that’s not doing anyone any favors.

Yet the markets ultimately shrugged that off enough to stay up. The Dow rose 0.44%, the Nasdaq rose 0.11%, and the S&P 0.42%.

Nothing enormous, but still in the green.

This morning though? They’re all down as of 9:00 a.m., at least on part from Amazon’s(AMZN) Q2 report. The tech giant beat earnings per share (EPS) and AWS revenue expectations. But it missed on $115.06 billion in revenue sales, coming in at $113.08 billion instead.

In addition, its Q3 forecasts aren’t what its followers were hoping for… leading me to further believe that we’re working off of hype much more than anything substantial these days.

The World According to REITs – Scene I

So that’s all the bigger markets news to share this morning. That and how Robinhood’s(HOOD) IPO didn’t go as planned.

Shares in the once ground-breaking app fell 8.4% below its set debut price – the worst showing on record among its cash-raising category.

Oops.

Fortunately for us though, that’s just background information. In the next segment, you’ll find another slew of Q2-21 real estate investment trust (REIT) earnings reports.

Those tend to overshadow everything else going on. But I don’t want you to go unaware of other happenings in the REIT world, including how:

Vornado (VNO) is suing the already troubled Archegos Capital Management for missing $159,165.55 in rental obligations. The firm leases out the entire 22nd floor at Vornado’s 888 Seventh Ave in New York City. And, apparently, previous communications on the issue went nowhere productive.
On the plus-side for Vornado, Wegmans is opening its first Manhattan location – and second NYC one – at 770 Broadway, a former Kmart site. The actual opening isn’t scheduled until 2023, but the lease is already set at 30 years for 82,000 square feet of space.
And in non-Vornado news, Welltower (WELL) has formed a joint venture with real estate investor and advisor Aspect Health. This involves the REIT investing in Aspect’s existing six properties and one under construction. And there’s a 10-year exclusivity agreement in place on future development opportunities as well.

Remember how I’ve said the last two days that you can get more Q2 updates by signing up for Intelligent REIT Daily…

In case you haven’t signed up yet to see what I mean, that completely and always free offer still stands.

The World According to REITs – Scene II

And now onto the main attraction…

Kimco (KIM) reported Q2-21 funds from operations (FFO) of $0.34 per share, beating estimates of $0.31 and Q2-20’s $0.24. The retail REIT also recorded $289 million in revenue – once again topping expectations of $272.6 million – and pro-rata portfolio occupancy was 93.9% by the end of the quarter, advancing 40 basis points (bps).
Digital Realty (DLR) brought in common shareholder net income of $0.45 per share, up intensely year-over-year from $0.20. FFO was $1.78 compared to Q2-20’s $1.49. And its revised core FFO per-share outlook is now set at $6.50-$6.55, up from $6.45-$6.50. That even takes into account the $0.12 non-cash charge from the U.K.’s higher corporate tax.
Medical Properties (MPW) saw net income of $0.19 per share in the second quarter and met FFO estimates of $0.43 – up year-over-year from $0.38. Meanwhile, revenue was $381.79 million over $291.84 million. It also closed on 35 sale-leaseback transactions with Priory Group for £800 million and acquired four general acute care hospitals in. L.A. for $215 million.

Far be it from me to only give you good news though, so here’s one miss for the road:

NexPoint (NREF) substantially beat out last year’s Q2 earnings per share of $0.37. But its $0.59 still fell short of the $0.63 expected. Revenue was $5.29 million – a 22.07% disappointment – but still up notably over Q2-20’s $4.61 million. Overall, perhaps analysts should stop setting their estimates quite so high, since NexPoint hasn’t been able to beat them once in the last year.

Even so, the REIT didn’t make yesterday’s naughty list. Clearly, 10 other companies were found more wanting in the weighing.

(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.

L Brands Cuts Ties With This Bombshell Company

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

GDP Misses, Amazon Disappoints, and Digital Realty Shines

Brad Thomas

467 postsJuly 30, 2021

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GDP Misses, Amazon Disappoints, and Digital Realty Shines

467 postsJuly 30, 2021

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