iREIT Daily

The Disruptions and Potential Disruptions Pile Up

Brad Thomas

467 postsOctober 5, 2021

I know I said last year that movie-going would never be the same once the Covid-19 social distancing push hit. But I’m willing to admit consider the possibility that I was wrong.

Honestly, it would be a positive if I was for several real estate investment trusts (REITs), including some I’m very favorable toward. So I’m hardly going to be upset if movie chains like AMC Entertainment (AMC) make it.

I mention this because of news I wasn’t able to address yesterday – the strong showing that Venom: Let There Be Carnage and James Bond’s No Time to Die did this past weekend. The first was a U.S. debut, while the second set of results comes from the U.K. – which has been lockdown central in many ways.

Sony’s Venom in particular brought in $90.1 million, the second-biggest October-specific opening weekend ever. (Joker, released in 2019, still takes the top spot.)

Really, $90.1 million is nothing to sneeze at no matter how you look at it. People are talking about how it’s the highest post-pandemic three-day run so far. But, again, it’s clearly something to talk about regardless.

That’s why it will be interesting to see how this final quarter goes with the movie theater crowds. There’s still some supposedly big ones waiting their turn through December.

Will they make their producers even more filthy rich than they already are? The odds are looking more and more in their favor as the year winds down.

I asked that question to segue into our next segment: how the wealthy are coming under fire on multiple levels. And no, I’m not talking about how much Facebook execs lost yesterday.

That can be recovered “easily” enough compared to Senator Elizabeth Warren’s new proposal to tax rich Americans’ net worth.

The Tax-the-Rich-Quite-a-Bit-More Plan

Warren’s plan essentially reiterates what she talked about while running for president last year. It would place a 2% annual tax on U.S. households with a net worth of $50 million+ and an extra 1% on those worth $1 billion+.

This would put people like Mark Cuban, of multi-venture fame, in the hot seat. So he’s hardly unbiased in calling the proposal a would-be “disaster,” telling Cavuto: Coast to Coast:

I don’t think Elizabeth Warren knows at all what she’s talking about when she deals with this. I think she just likes to demonize people that are wealthy, and that fine.
… but I just don’t think [people like her] really understand the implications of taxing unrealized gains. People are going to have to sell things they otherwise would not sell. People are not going to make the same investments.

He pointed to Shark Tank deals in particular, where he and his fellow hosts offer financial help to promising entrepreneurs. It would:

… be completely different if I think I’m going to have to pay unrealized gains. I might have to retain capital so I could pay taxes on those unrealized gains, so I know it would change behavior.
I know it would change investment attitudes and approaches, and I just think it would hurt the market.

Meanwhile, JPMorgan (JPM) CEO Jamie Dimon’s $31.5 million salary is under direct criticism. Forbes says the man is worth about $2 billion, not a dime of which he’s apologizing for.

He told Axios on Sunday, “We have a free market in this country, which… everyone should applaud.”

Whether anything will ultimately come of Warren’s proposal is uncertain. But as for me, I’m not sure if I would be so hasty to upset the apple cart right now…

The World According to REITs

Earnings season is almost here, for one thing. That happens four times a year, clearly, so it’s usually only so big of a deal.

But let me quote Yahoo Finance’s Morning Brief to break the current situation down, Q2 was filled with so much optimism. Yet:

As the Q3 season gets underway, the tableau is starkly different. Investors are decidedly spooked about everything from soaring prices (which is hammering stocks and pushing up Treasury rates) to resurgent infection rates, and the latest public relations bombshells rocking Facebook (FB).
But the biggest storyline for markets to follow is corporate America’s ongoing struggles with an economic nervous system (also known as the global supply chain) that, as Bank of America succinctly put it last month, is in “disarray.”

That definitely factored into yesterday’s market activity, with the S&P 500 down 1.30%, the Dow down 0.95%, and the Nasdaq losing 2.14%.

Like I said, now’s just not the best time to upset the apple cart. I think our first two entries down below further proves that point:

Braemar Hotel & Resorts (BHR) reported September portfolio occupancy at 56.4%. Its average daily rate was $333, and revenue per available room (RevPAR) was $188. That latter figure is up 166.7% year-over-year but down 20.8% from September 2019.
Ashford Hospitality Trust (AHT) reported portfolio occupancy of 59.7% for September. Its average daily rate was $158, and RevPAR was about $94 – up around 145% year-over-year but down 28.2% over September 2019.
Cousins Properties (CUZ) purchased a 294,000 square-foot office property in downtown Tampa for $144.8 million. The asset was just opened last year and is already 93.4% leased to tenants such as Pfizer (PFE) and AxoGen (AXGN).

That’s it for now, except for this last important data, of course…

(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.

Dividend Growth Stock of the Week: Cummins

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

The Disruptions and Potential Disruptions Pile Up

Brad Thomas

467 postsOctober 5, 2021

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467 postsOctober 5, 2021

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