iREIT Daily

Powell Gets Pummeled in Probably Pointless Appearance

Brad Thomas

467 postsJanuary 12, 2022

Federal Reserve Chairman Jerome Powell will probably be reconfirmed to his position when everything is said and done. But Congress seemed intent yesterday on reminding him that heavy is the head that wears the crown regardless.

Powell appeared before the Senate Banking Committee, where he was pressed to explain the economy’s current inflationary environment. Why didn’t he act sooner, they wanted to know?

And what about the revelations of what amounted to insider trading among high-ranking Fed members amidst the shutdowns? What does he have to say about that?

Honestly, it was probably all posturing on the politicians’ parts. But it couldn’t have been a comfortable experience for Powell all the same.

“I think that inflationary pressures do seem to be on track to last well into the middle of next year,” the man who stood by “transitory inflation” for so long admitted. “And if they last longer than that, then I’ll just say that our policy will continue to adapt.”

Again, it’s a very safe bet that he’ll extend his stay in the powerful position he currently holds. But he has earned some very vocal criticism from people like Senator Elizabeth Warren over the last year.

For his part, Larry Summers – President Clinton’s treasury secretary and President Obama’s National Economic Council director – issued this statement about him after the Committee adjourned:

A recognition of the need to change direction… was necessary but not sufficient for successfully achieving price stabilization and sustained growth. I see grounds for substantial concern in both the intrinsic difficulty of the task at hand and in misconceptions that the Fed still seems to hold.

And that’s among the nicer expressions of doubt Powell is facing right now.

More Non-REIT News

Another high-profile individual who’s less than impressed with Powell is Ark Invest’s Cathie Wood. On a January 7 webcast, she said that:

What we believe has happened here is that the Fed, having suggested that inflation was transitory since the beginning of the coronavirus, was becoming concerned when it saw CPI inflation year-over-year at 6.8%. And it does not want to be blamed for inflation being sustained and certainly not moving out of control.
We think this is a bit of jaw-boning here. The Fed wants to err on the side of hawkishness, certainly from a jaw-boning point of view because they don’t want inflation to continue to escalate.

Two things about that though:

Despite admitting that inflation has been going on much longer than expected, Wood remains committed to the idea that it “is indeed transitory.” Yesterday, she even reaffirmed her firm’s stance that deflation is the main problem to be worrying about.
According to Yahoo Finance, Ark Innovation ETF (ARKK) is down more than half from its February 2021 peak.

On that second point, how far do you stick with an investment strategy before you admit defeat – even if just temporary – and switch course? I would say that moment should come before a holding falls 50%, but that’s just me.

Back to inflation specifically though, there are more Covid-19 flareups in China. And big-name brands like Samsung Electronics and Volkswagen – including less-well-known suppliers of big names – are either experiencing staffing issues as a result or are having to shut down factories altogether on government orders.

So more supply shortages should be expected.

Meanwhile, here in the U.S., Meta/Facebook (FB) is once again delaying its office return. This time, it’s from January 31 to March 28.

Will big tech ever leave home again? The question continues…

The World According to REITs

After clocking in a confusing morning, U.S. markets ended up. The S&P 500 recovered 42.78 points, a 0.92% day-over-day increase. The Dow rose 183.15 points, or 0.51%. And the Nasdaq closed with a 210.62-point, or 1.51%, gain.

Nonetheless, real estate investment trusts were very mixed in how they performed. There was a good bit of red in my coverage spectrum, though – as you’ll see in the Daily REITBeat summary below – most of the losses were pretty minor comparatively speaking.

Outside of that, my REIT newsfeed was filled with Q4 and full-year earnings release announcements. We haven’t hit earnings season yet, but you’d better believe that CFOs everywhere are getting ready for it nonetheless.

That includes the two CFOs just hired by two different companies, which I cover at Intelligent REIT Daily today. If you want to get set up for such additional details in the future, here’s your link!

For this publication though…

Regency Centers (REG) made five property purchases in Q4-21 for $311 million and sold two for $87 million. Since then, it completed its sale of the Costa Verde Center in San Diego, California, for $125 million. The cap rate on that recent transaction was about 1.5% of in-place net operating income (NOI).
Postal Realty Trust (PSTL) acquired 239 properties last year, amounting to 1.8 million net leasable interior square feet. They cost $118 million and came with an average weighted rental rate of $5.56 per leasable square foot. It also collected 100% of its rent in the fourth quarter.
One Liberty Properties (OLP) purchased a 53,000 square-foot industrial building. Located in Fort Myers, Florida, with an $8.1 million purchase price, it’s leased through 2030. OLP also sold two Wendy’s properties in Pennsylvania for $5.7 million.

And then, to return to Tuesday’s market movement, here’s what I was talking about:

(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.

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

Powell Gets Pummeled in Probably Pointless Appearance

Brad Thomas

467 postsJanuary 12, 2022

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Powell Gets Pummeled in Probably Pointless Appearance

467 postsJanuary 12, 2022

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