iREIT Daily

More Red Across the Market Board

Brad Thomas

467 postsNovember 30, 2021

Since the markets are right back to red this morning, I figured I’d address the real reason – or at least my theory about the real reason – why investors sent the Dow in particular down 900 points on Friday.

But it looks like Yahoo’s “Morning Brief” beat me to it. So I’ll let it summarize the situation (or at least my theory about the situation) for starters:

… the Omicron variant of Covid-19 appeared out of nowhere [last week] to sow fear, confusion – and lots of red ink on Wall Street.
As the World Health Organization’s director general so eloquently phrased it, the mutation’s big debut showed us that the virus is “not done with us” – even if we desperately want to be done with it.
In the intervening days, a number of unanswered questions have been raised about how seriously Omicron afflicts (pretty mildly, according to initial reports), whether vaccines will still be effective (no definitive answer yet, but Moderna has already promised a bespoke version of its vaccine by early 2022), and perhaps most importantly, how rapidly it spreads (the most worrisome concern, and by all indications, a legitimate one).

I’ll stop writer and editor Javier E. David for a moment there to add a few more details. Personal opinions too.

For one thing, the South African doctor who identified Omicron has called its symptoms “extremely mild.” Which means that how rapidly it spreads isn’t so worrisome after all, only a potential bother.

For another, Moderna CEO Stephane Bancel said the current Covid vaccine probably won’t be very effective against this new strain. Then again, at the risk of sounding flippant… who cares if the symptoms really are so mild?

Both Yahoo’s David and I don’t think Mr. Market does. There’s some other fear afoot.

The Real Reason Stocks Retracted

As David notes, the Federal Reserve could change its tapering and other stimulus plans because of Omicron. Not that the greedy markets would object to that part.

But “there’s one fulcrum on which all of the unknown variables rest… would an Omicron-driven outbreak lead to more lockdowns?” Biden says no – which presumably gave Monday’s trading session the boost it managed.

Unfortunately, there have been so many federal flipflops on such things over the last two years that it’s hard to take lasting comfort from such statements.

Remember “two weeks to slow the spread”?

Even so, I don’t think it’s wise to jettison solid stocks from your portfolio on such possibilities. I understand why people are doing it anyway. And I seriously sympathize with their panic.

I just can’t share it. The way I see it, this seems like a great opportunity to pay attention to my watchlist. So that’s precisely what I’m doing.

I’m in a buying mood, not a selling one.

That wasn’t the sentiment among big tech investors yesterday, however. Not ultimately, anyway. While Twitter (TWTR) shares snapped upward at first on the news that CEO Jack Dorsey was stepping down – hardly what any outgoing executive wants to see – they ended up falling 2.74% to $45.78.

Perhaps investors aren’t so sanguine about incoming CEO Parag Agrawal after all.

In other big tech news, Microsoft (MSFT) CEO Satya Nadella sold 838,584 insider shares last week. That’s approximately half his stake.

Here’s why:

Microsoft is headquartered in Washington state.
Washington state is instituting a capital gains tax in December.
It’s almost December…

I’ll let you conclude accordingly from there, regardless of Nadella’s on-the-record reason for the move.

The World According to REITs

In real estate investment trust (REIT) related news, Sunday was the TSA’s busiest day since the shutdowns began. Airport security checkpoints around the country screened 2.45 million people and 10.1 million for the full five-day weekend.

That’s apparently 89% of 2019 levels.

I also want to touch on Black Friday and Cyber Monday results, some of which are still being calculated. Right now, there are varying reports about whether sales were flat or up a bit. But Quartz reported yesterday that:

Online sales dipped slightly for the first time since at least 2012 this Black Friday… as consumers shopped earlier in the month amid ongoing supply chain issues, according to data from Adobe Analytics.

And “data from Sensormatic Solutions shows more Americans returned to in-store shopping this Black Friday.” That figure remained “more than 28% below pre-pandemic levels,” but I can definitely tell you this…

Parts of the country saw its stores much more filled than that.

As for REITs themselves, they were looking a little more lively yesterday, issuing updates such as:

National Health Investors (NHI) told shareholders that it collected 82.7% of rent due from its three largest senior housing operators in November. And occupancy was at least steady, if not up a tick or two.
Columbia Property Trust (CXP) expects to finalize its merger with Pacific Investment Management affiliates around December 8. It should also pay out a special cash dividend of $2.17 per share around that time.
Public Storage (PSA) will redeem all its 4.90% Series E cumulative preferreds on December 30 at $25 per share.

Elsewhere in the REIT-iverse, we can see that yesterday’s upward action was a lot more positive than Friday’s. Though all bets are off about how today will turn out.

(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.

Tech Stocks Take Some Hits

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 Red Across the Market Board

Brad Thomas

467 postsNovember 30, 2021

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467 postsNovember 30, 2021

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