iREIT Daily

Second Star to the Right and Straight on ‘til Morning

Brad Thomas

467 postsMay 6, 2021

Today, I’m starting with some out-of-this-world news.

Competing space exploration multi-multi-billionaires Jeff Bezos and Elon Musk each reported big news the other day. For his part, Musk’s SpaceX landed a crewless, passenger-less SN15 with complete success for the first time ever.

It launched at about 5:23 last night from Boca Chica, Texas, rocketed upward for six minutes as planned, then fell down horizontally as planned until it righted itself to land vertically just as planned as well.

There was a small fire to put out afterward, but that was it. The spacecraft is still intact and presumably ready for another round!

Meanwhile, Jeff Bezos’ Blue Origin says its Blue Shepherd vehicle will see its maiden voyage happen on July 20, taking astronauts and one highest-bidding passenger along for the ride of a lifetime.

That’s all neat, you might be thinking. But why bring this up in Another Day in REIT Paradise?

Well, mainly because it really is neat, but also because it can and will affect real estate from here. Every success story Musk has in his new state of Texas, for instance, will almost undoubtedly bring in more overall business and residential traffic alike.

Plus, here’s a fun and not entirely unserious thought: If real estate is going to start opening up on Mars, we want to know about it… along with which real estate investment trusts will be acquiring property there.

As for those REITs’ current actions, the latest earnings reports to emerge include from:

Global Medical REIT (GMRE)
Colony Credit Real Estate (CLNC)
Tanger Factory Outlet Centers (SKT)
One Liberty Properties (OLP)
RPT Realty (RPT)
Diversified Healthcare Trust (DHC)
Federal Realty Investment Trust (FRT)
Healthcare Realty (HR)
EPR Properties (EPR)
American Finance Trust (AFIN)
Spirit Realty (SRC)
Vereit (VER)
Store Capital (STOR).

I’ll go into detail about how some of them fared last quarter in a moment. But first…

I want to first focus on what I announced yesterday in a “bonus update” about Monmouth Realty (MNR).

REIT M&A Potential Is Everywhere

Along with reporting “Q1 net income attributable to common shareholders of $25.9 million, or $0.26 per diluted share” – which was a significant advance over last year’s $75.1 million net loss – the REIT announced that it agreed to be completely acquired by Equity Commonwealth (EQC) in a $3.4 billion acquisition.

Once upon a time, REIT mergers were anything but common. Yet last year, we had Simon Property Group (SPG) buy up Taubman. And this year, Realty Income (O) will be purchasing Vereit (VER)…

Kimco (KIM) will be taking over Weingarten (WRI)…

mREIT RMR Mortgage Trust (RMRM) will be buying up Tremont Mortgage Trust (TRMT)…

And now Equity Commonwealth will be doing the same with Monmouth.

Nor do I think we’re done yet. That’s a conclusion I’ve reached after careful analysis and consideration.

Size and scale matter more and more in this super-stressed real estate environment we’re in. So REITs are looking to strengthen their outlooks more than ever.

Knowing that, don’t be surprised if we see more merger and acquisition activity announcements before the year is over. When everything is said and done, we might very well be looking at something much more like the financial sector is today.

There are small banks and big banks out there now. But most of the medium-sized ones are gone for good after the Financial Crisis pushed them into each others’ arms for necessity’s sake.

That’s why I think it’s more important than ever to be conducting my Ground Up C-suite interviews over at iREIT on Alpha. Getting such intensely connected insider opinions can put us several steps ahead in predicting who’s going to level up next.

In fact, I just conducted another interview yesterday, this time with Omega Healthcare Investor(OHI) CEO Taylor Pickett. You can listen to it, watch it, and/or read about it right here.

It’s yours for free when you sign up for your two-week iREIT free trial!

The World According to REITs

It’s another day and another dollar in REIT paradise today as we review a few of yesterday’s earnings reporters. Since there were so many of them, I get to pick and choose my “favorites” to feature in terms of companies I tend to talk about more often than not.

That makes it extremely important for me to point out how none of the following information is meant to be seen as a recommendation. I don’t always write about companies I’m impressed with, for one. And for another, I’m never going to buy into a company based on quarterly results alone.

Valuation is always key, and earnings reports don’t tend to tell that story. That’s not their purpose. Instead, they give details like these:

Tanger reported quarterly funds from operations (FFO) of $0.40 per share, beating out Zacks Consensus Estimate by four cents. For the same time last year, it recorded $0.50 per share. Revenue was $97.47 million compared to Q1-20’s $108.56 million. And net income was $3.9 million, or $0.04 per share, versus a net loss of $27.4 million, or $0.30 per share this time last year.
Federal Realty walloped its Zacks Consensus Estimate of $1.02 in FFO per share, coming in at $1.17 instead. That was still clearly down from last year’s $1.50 – but after beating expectations three times now out of the last four, it’s clear the company is navigating the “pandemic era” much better than it could be.
EPR Properties also came out ahead of its critics at $0.52 FFO per share instead of $0.44. For last year’s first quarter, however, that figure was $1.14. Meanwhile, its revenue was $102.61 million compared to Q1-21’s $135.04 million, though it says rental cash collections did improve to 72% for January-March and are at 77% for April.

Finally, for today’s earnings report bonus…

Store Capital brought in revenue of $182 million, up 2.5% year-over-year, thanks to its spending spree last year. As Businesswire reports, the company’s portfolio “grew from $9.1 billion in gross investment amount, representing 2,552 property locations and 491 customers at March 31, 2020, to $9.7 billion… representing 2,656 property locations and 522 customers…” And adjusted funds from operations (AFFO) jumped 4.3% to $125.2 million, or $0.47 per diluted share.

As always, I hope this information helps build you a better picture of what’s going on with REITs. The same goes for yesterday’s stock price activity.

(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

Second Star to the Right and Straight on ‘til Morning

Brad Thomas

467 postsMay 6, 2021

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Second Star to the Right and Straight on ‘til Morning

467 postsMay 6, 2021

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