iREIT Daily

Port-folio Changing Potential

Brad Thomas

467 postsNovember 2, 2021

I was writing an article yesterday morning about real estate investment trust (REIT) dividend yields that are both high – as in above 4% – and safe at the same time. And in it, I highlighted the importance of that “safe” factor.

The article itself isn’t published yet, but here’s the gist of at least part of it: Human nature being what human nature is, we’re usually not properly prepared to handle volatility.

That’s why it’s almost always best not to get involved in high-risk, high-reward investments. At least not to any great degree.

I bring this up because of yesterday’s volatility. The markets really did resemble a roller coaster, swinging up and then down repeatedly.

All in all, they ended up. But what a directionless way to start out the new month.

I’d like to say something along the lines of “hopefully, that’s not a harbinger for the rest of November.” But it seems pretty pointless when I don’t have that hope at all.

That’s not to say I’m hopeless in general. Hardly. There is good news out there, like Florida Governor Ron DeSantis’ recent remarks on the supply crisis.

“You’ve seen these images of ships docked off the coast of various [U.S.] cities,” causing very noticeable shortages,” he noted. “But “we in Florida have the ability to help alleviate these log jams” with ports that are always open 24-7.

“Florida is here. We have the capacity. And we also have incentive packages that will make it worth your while to be able to bring your business to our ports.”

Governor Greg Abbott in Texas is saying the same thing:

“The rules and regulations that exist in California – that’s one reason why you see the almost 100-day delay in ships being able to go to port and unload and get those goods across the United States of America, causing the problems that we see in the supply chain. In just two weeks, those same ships could go through the Panama Canal and go to the Houston Port and Freeport Port in the state of Texas, unload, and be back in Asia before they would even be unloading in California.”

Hopefully, we’ll start seeing ships take advantage of such offers soon.

The World According to REITs

That supply chain crisis is hitting everyone in the U.S. It’s only a matter of how badly. So it’s nice to see there’s not a shortage at least in post-pandemic movie-going interest.

October’s box office numbers are officially in, with $637.9 million recorded in pants-in-seats sales. That’s it’s best figure since the shutdowns began.

Now, it’s important to know that October had more movies available than usual due to earlier delays. But still… looks like movie theaters will be able to pay another round of rent to their REIT landlords after all.

We’ve also got The Daily REITBeat back today, which breaks down quarterly earnings for Agree Realty (ADC), Armada Hoffler Properties (AHH), Brixmor Property Group (BRX)…

Broadstone Net Lease (BNL), Centerspace (CSP), Easterly Government Properties (DEA)…

Essential Properties Realty Trust (EPRT), Gladstone Commercial (GOOD), InvenTrust Properties (IVT)…

NexPoint Residential Trust (NXRT), Public Storage (PSA), Realty Income (O)…

Ryman Hospitality Properties (RHP), SBA Communications (SBAC), Simon Property Group (SPG)…

Tanger Factory Outlet Centers (SKT), Vornado Realty Trust (VNO) and Xenia Hotels & Resorts (XHR).

Of those, here are your Day in Paradise featured four:

Tanger’s $0.47 per-share core FFO was $0.47, allowing it to hike guidance from $1.52-$1.69 to $1.67-$1.71. Its occupancy rate was 94.3% at quarter’s close, up a tick or two from June’s closing 93%. And by October 29, Tanger had collected 98% of its 2020 deferred rents.
Simon announced funds from operations of $3.13 per share and raised its full-year guidance from $10.70-$10.80 to $11.55-$11.65. Quite the hike! Portfolio net operating income (NOI) jumped 34.3% year-over-year. Its U.S. malls and outlets recorded 92.8% occupancy as of September 30. And the larger company had around $8 billion of liquidity.
Realty Income was another full-year “raiser” from $3.37-$3.46 to $3.43-$3.48 after reporting FFO of $0.89 per share. It acquired 242 U.S. properties amounting to 4.74 million square feet and another 30 in the U.K. and Spain at 2.083 million square feet. Plus, it collected 99.5% of its rent due in the quarter, up from 99.4% in Q2.
Public Storage wasn’t one to buck the optimistic trend. With per-share FFO of $3.42, it’s now expecting 2021’s figure to be between $12.50 and $12.80, up from $11.90-$12.30. Same-store direct NOI rose 20.8%, and it added 27 self-storage facilities for $0.3 billion with another 107 more acquired or under contract since quarter’s end.

Want more of that kind of information? If so, you know where to go! To get another three for free, you need to get yourself subscribed to Intelligent REIT Daily.

(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.

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

Port-folio Changing Potential

Brad Thomas

467 postsNovember 2, 2021

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Port-folio Changing Potential

467 postsNovember 2, 2021

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