iREIT Daily

More Mayhem and Mergers

Brad Thomas

467 postsJune 29, 2021

Yesterday was an interesting trading day, to be sure, filled with fascinating news. Like how Under Armour (UA) posted 2,300+ new jobs… hiked its minimum hourly wages by 50% to $15… and declared a forecasted profit for 2021 rather than a loss.

Like how Morgan Stanley (MS), JPMorgan Chase (JPM), Bank of America (BAC), and Goldman Sachs (GS) all raised their payouts. Last week, the Federal Reserve granted them annual stress test-determined clean bills of health. This week, Morgan Stanley doubles its dividend to $0.70 for Q3.

And like how United Airlines (UAL) took a significant step toward closing on an airplane order for 270 jets. Worth up to $30 billion, it would be the industry’s biggest post-shutdown move so far.

Then again, thanks to the so-called Delta variant of Covid-19, some are calling for people to mask up again. And parts of Australia are in full lockdown mode already.

Jim Cramer went off on that yesterday, saying this:

“Finally, we have the variants to consider. Do you really want to travel until you find out if your vaccine works against everything new that this constantly mutating virus creates? Who in heck thought of this dastardly thing? Can it really just be bats and pigs? I am starting to believe it was invented and that the Chinese are giving us a version where pigs do fly.”

He added:

“Anyway, the airlines and cruise ships are all down, not helped by a $500 million equity offering from Carnival (CCL). Heaven knows after all of these deals whether the companies have any earnings power left for shareholders.”

And,

“Marriott (MAR) down five on this. That’s a ton of points to shed on a variant.”

It’s as if the markets don’t make much sense in the moment. Or something.

A Little More About the Markets in General (to Introduce REIT Activity)

That nonsense conclusion was definitely Cramer’s main point. His rant continued by including the insanity of such things as:

American Express (AXP) being down so far on travel news alone
The infrastructure bill being in jeopardy because of another Biden gaffe
Cathie Wood’s ARK Innovation ETF (ARKK)

“The secret of Wood’s investing,” he hypothesized, is that “she seeks to find the most out-of-sync companies with absurd valuations until they aren’t.”

After opining on everything else from Paypal (PYPL) to Etsy (ETSY), his ultimate conclusion was:

“I know it seems too simplistic. How can the new companies have such a halo while the old ones such Pig-Pen like [clouds] over them? I think it has to do with the buyers. They like excitement. Maybe they like cool per share? And they hate uncool per share?
“No matter. They make or break companies with their voting or buying or betting. And somedays, it’s all that matters.”

So how did our real estate investment trusts fare in that tumult yesterday? To at least partially answer the question, let’s start out with our typical Daily REITBeat graphic:

(Source: The Daily REITBeat)

Honestly, almost all the REITs we cover here were in the red yesterday. So I suppose we’re in the “old” or “uncool” category.

For now, anyway.

I remember a time some two decades ago when something seemingly very similar played out. The way that story ended was with people becoming more than okay with “uncool” again for quite a while.

Could that happen again? We shall see…

We always do.

The World According to REITs

Since the “uncool” category keeps paying dividends regardless, here’s your official REIT news snippet:

CTO Realty Growth (CTO) priced a public offering of 3 million shares of its 6.375% series A cumulative redeemable preferred stock at $25 each. This should result in gross proceeds of $75 million, which it will use for general corporate purposes and potential acquisitions.
Indus Realty Trust (INDT) took ownership of a recently built, 50% leased industrial building in Charlotte, North Carolina. The 395,000 square-foot facility cost $42 million, bringing INDT to about 1 million square feet of such space in the area. That will increase by 141,000 square feet in September with a built-to-suit warehouse.
Four Corners Property Trust (FCPT) acquired a Stanton Optical property in Wisconsin for $2.1 million. The occupant still has seven years left to its lease.

Also, remember when I remarked the other day about how certain companies that had been buying up properties left and right had suddenly gone silent? Well, Four Corners was one of them. So will this signal another switch-up?

To see more where that came from, click here to sign up for Intelligent REIT Daily e-letter!

Last but not least, there’s the merger news that Ventas (VTR) will be buying New Senior Group (SNR) for $2.3 billion. That includes the latter company’s $1.5 billion of new senior debt.

At the risk of tooting my own horn… what did I tell you about more M&A activity going forward?

I can’t predict the future, of course, but certain signs are clear enough to take a stand on. And this, I would say, is one of them.

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

More Mayhem and Mergers

Brad Thomas

467 postsJune 29, 2021

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