iREIT Daily

More News Comes in About Office Space

Brad Thomas

467 postsMarch 18, 2021

Quote for Today:

“There’s no such thing as a free lunch.”
– Milton Friedman

(Source)

As I said on yesterday’s blog post, I have my opinions about the final fate of office real estate. They’re well-researched and well-thought out opinions, too. And there are other industry experts who say the same.

Then again, there are those who don’t. So I’m going to continue sharing the negative news with you just as much as the positive proofs I keep finding.

That’s because it’s clear we’re still slogging our way through the shutdown era, which means that nothing is actually decided yet. There’s so much that’s still up in the air.

If we want to be on the side where it’s much, much easier to catch what’s falling – or to avoid it, depending on your perspective – than we need to stay as informed as possible about the day-to-day or at least week-to-week happenings of these unprecedented times, weighing them against what’s already happened.

That’s why I’ll be the first to share that Ford (F) informed about 30,000 employees around the world that they can continue working from home indefinitely. They’ll still have to come in for meetings and certain projects, but their main offices will be their home offices.

So add that information to your knowledge bank and assess it appropriately. That’s what I’m doing, just like I have been and just like I will be.

The same goes for Google’s (GOOG) recent announcement that it will be spending more than $7 billion on data centers and expanding its office spaces in 19 states this year. Moreover, it plans to start bringing its workers back to their physical offices in the fall.

Oh, and here’s another thing to consider: Some of that noted expansion? It will be happening in California.

In one more piece of broader news to digest, Amazon (AMZN) is now the top clothing retailer in the U.S.

There are multiple ways of looking at that. And, again, there’s no guarantee that will continue after the economy completely reopens just like there’s no guarantee that it won’t. But here’s what we know now, according to Fox Business:

“A group of the bank’s retail analysts estimate that the ecommerce giant’s U.S. sales of clothing and shoes, including third-party sellers, grew 15% in 2020 to $41 billion. The increase represents 11%-12% share of all apparel sold in the U.S. and a 34%-35% share of all apparel sold online.”

That certainly seems like good news for industrial properties and bad news for malls. And, on this one, I do tend to think the negative conclusion is more right than wrong.

One way or the other though, I’ll continue to practice and promote healthy diversification and allocation efforts. That’s always the best way to reduce risk while simultaneously capitalizing on profit potential.

The World According to Commercial Real Estate

This week has been extremely busy, filled with interviewing various REIT CEOs. Yesterday morning, for one, I interviewed Iron Mountain’s (IRM) Bill Meaney, who explained how:

“We’re in 56 countries around the globe. I think we are by far the most international of any of the REITs.”

I really enjoy speaking with him and other C-suite members of management. I’m able to learn so much more that way than by merely reading an earnings transcript.

That’s why I’m hardly done for the week. This morning, I plan to interview the CEO of UMH Properties (UMH). And tomorrow, Digital Realty (DLR) is up for discussion.

Then, next week, I’m hoping to schedule one with Farmland Partner (FPI), which reported disappointing earnings yesterday.

As The Daily REITBeat noted this morning, Q4 adjusted funds from operations (AFFO) came in at just $0.16 per share, which was down from $0.28 a year ago. And total operating revenue was $17.9 million, another notable year-over-year decline from $21.9 million.

CEO Paul Pittman said:

“We expect that demand and pricing for specialty crops will improve in 2021 and that strong price projections for corn and soybeans, driven by high exports and low inventory levels, will generate great results for our row-crop tenants.”

But there were some immediately positive developments to report in REIT-dom as well, including how:

Four Corners Property Trust (FCPT) acquired an Advance Auto Parts property in a part of Texas that’s still making retail look good…
Whitestone REIT (WSR) signed more than one new lease at its Las Colinas Village property located in the Dallas-Fort Worth area, increasing occupancy there by 9.4%, Dallas-wide occupancy by 1.5%, and Dallas-wide net operating income (NOI) by 5.4%.
Vereit (VER) saw Fitch affirm its BBB long-term issuer default rating and operating partnership’s long-term IDR at BBB with a stable outlook.

You’ll find a few more winners (and admittedly losers) down below.

(Source: The Daily REITBeat)

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.

Iron Mountain’s CEO, Bill Meaney

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 News Comes in About Office Space

Brad Thomas

467 postsMarch 18, 2021

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467 postsMarch 18, 2021

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