iREIT Daily

The Happiest Place on Earth

Brad Thomas

467 postsOctober 28, 2021

The California collection of Disney (DIS) theme parks just got a little more costly through a new tiered pricing system.

The company says it’s giving guests “more ticket choices to meet a variety of budgets.” But we all know the truth, especially when it’s also increasing parking prices by $5 per car.

No matter how “the happiest place on Earth” spins it, that’s not something you do with your customers’ best interest in mind. You do that when you’re focused on your own bottom line.

Perhaps that’s connected with its other announcement this week about a string of upcoming Marvel movies. Five films scheduled for 2022 are now delayed anywhere between two and a whopping nine months.

And its in-the-works Indiana Jones movie will take an extra year to come out.

Is there trouble in paradise? I guess we’ll see soon enough when Disney reports its quarterly earnings.

We already know that Ford (F) and GM (GM) aren’t doing so hot. The former’s quarterly net income fell 23% year-over-year to $1.83 billion. And the latter tanked 40% down to $2.4 billion.

Neither could meet demand as the chip shortage continues.

Then there’s Fresh Del Monte Produce (FDP), whose CEO, Mohammad Abu-Ghazeleh, just spoke out about rising costs. “It is necessary to implement inflation-justified price increases in an effort to maintain our continuous supply and service levels.”

That’s hardly shocking. Neither is his rationale that increasing supply chain costs and unprecedented “inflationary pressures” that “show no signs of regulating” are to blame.

Other sources warn consumers that items such as wine and coffee will start costing more. And we just learned that the U.S. economy expanded at just 2% last quarter.

Two percent.

Clearly then, the negative headlines aren’t set to stop anytime soon.

Sorry, Tesla. I’m Sticking With REITs Right Now

Then again, neither are Tesla’s (TSLA) to-the-moon headlines. Yahoo Finance’s Morning Brief just wondered if it will hit $3 trillion.

“With short-sellers cowed, Tesla $3T could be closer than we think,” it speculates.

With all due respect to Elon Musk, I’m still taking the stance that Tesla remains a “feelings” stock. That makes it every bit as unsettling as Bitcoin, which experienced some severe volatility earlier this week.

To support my stance, I’m actually going to quote a pro-Tesla post. Written by a James Pethokoukis, it’s titled, “Why Tesla’s $1 Trillion Valuation Says Something Good About the U.S. Economy.”

“Everyone knows America doesn’t make anything anymore. But, you know, Tesla does. And what it makes, investors apparently think is pretty valuable, both now and in the future. Indeed, they think the potential of what Tesla makes is so valuable that no company has itself become so valuable despite selling so little…”

Who knows. Musk’s companies might very well go to Mars, taking Tesla out of this world too. Yet I remain perfectly content sticking with more reasonable valuations and expectations.

Those fundamentals haven’t failed me yet, which is why I’ll keep reporting on the “boring” real estate investment trust (REIT) world.

In the past 24 hours, 20 of those REITs reported quarterly earnings, from American Tower (AMT), AvalonBay Communities (AVB), and Braemar Hotels & Resorts (BHR)…

To CyrusOne (CONE), CoreSite Realty (COR), and Duke Realty (DRE)…

To Equity Commonwealth (EQC), Empire State Realty Trust (ESRT), Extra Space Storage (EXR), and Farmland Partners (FPI)…

Getty Realty (GTY), Industrial Logistics Property Trust (ILPT), Invitation Homes (INVH), and Independence Realty Trust (IRT)…

Kilroy Realty (KRC), Mid-America Apartments (MAA), and Medical Properties Trust (MPW)…

Piedmont Office Realty Trust (PDM), Paramount Group (PGRE), and VICI Properties (VICI).

The World According to REITs

That long list makes it difficult to choose which ones to share here. There’s simply no way I can list off more than four summaries on these blog posts.

Fortunately, that’s why we have Intelligent REIT Daily, my free e-letter that gives you even more opportunities to stay up-to-date.

I strongly urge you to get connected today!

As for what goes here… eenie, meenie, minie, moe?

In all seriousness, obviously I’m going to share VICI’s results with you considering what a Buy I consider this company to be. Its $0.45 per-share adjusted funds from operations (AFFO) were perfectly respectable. Though it did reduce its full-year guidance from $1.82-$1.87 to $1.79-$1.80. It also announced $4.8 billion in total debt and $4.9 billion in total liquidity.
Medical Properties Trust saw normalized FFO of $0.44 per share and raised its core guidance from $1.72-$1.76 to $1.81-$1.85. I had total pro forma gross assets of about $22.1 billion. That includes $15.9 billion in general acute care hospitals, $2.4 billion in behavioral health facilities, and $2.1 billion in inpatient rehabilitation hospitals.
Empire State Realty Trust reported core per-share FFO of $0.20, with its observatory recording net operating income of $6.4 million. Its same-store property NOI did fall 5.7% year-over-year due to write-offs. But it signed 34 new, renewed, and expanding leases and collected 95% of its total rent due.
American Tower brought in AFFO of $2.53 per share and spent around $0.7 billion on 4,369 communication site acquisitions. Most of those were international purchases, including 4,000 in Germany as it completed its takeover of Telxius Telecom properties.

That’s (almost) it for today.

(Phew!)

(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.

GDP Didn’t Get Mr. Market Down, But These Factors Are

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 Happiest Place on Earth

Brad Thomas

467 postsOctober 28, 2021

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The Happiest Place on Earth

467 postsOctober 28, 2021

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