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Brad Thomas

 
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  • Is Now A Good Time To Buy STAG?
    Today, 7:00 AM STAG Comment!

    Summary

    • Overall the industrial sector experienced the strongest improvement in property fundamentals of any property sector nationally.
    • STAG’s strategic risk assessment model has performed well as evidenced by the acquisition history – the company's stated goal is to grow the portfolio by 25% annually.
    • I’m revising my FAIR VALUE Target from $22 to $24 per share as I expect STAG to continue to accelerate above average earnings growth.
  • A Predictably Profitable Hotel REIT That I Would Like To Own
    Editors' Pick • Today, 6:30 AM LHO Comment!

    Summary

    • LaSalle's average dividend increase over the last 4 years is around 60%.
    • One often overlooked metric is Return on Invested Capital, or AFFO/Debt & Equity.
    • ROIC is an important profitability ratio because it tells us if the company is turning its capital into profits.
    • I could have picked up LaSalle at close to a 4% dividend yield (90 days ago), so I'll wait for a better entry price today.
  • LTC Properties CEO Reveals The Secret Recipe For The REIT's Success
    Fri, Jan. 23 LTC 10 Comments

    Summary

    • Wendy Simpson has been CEO and president of LTC since 2007 and she was appointed Chairman of the Board in August 2013.
    • "With the cost of money today, we will be using our available leverage to invest in development properties and accretive sale/leaseback properties." Wendy Simpson.
    • "We are also, probably the least levered health care REIT." Wendy Simpson.
  • The Underdog REIT Barks Up This Inaugural Preferred Issue
    Fri, Jan. 23 CORR 3 Comments

    Summary

    • There is no premium for the Change of Control as you would see in most bond issues.
    • This preferred is unrated, but would most likely be lower-rated than most of the peer group.
    • Investors will notice that CorEnergy's preferred stock has a lower yield than its common stock.
  • Mr. Market Likes Uncle Bob And So Do I
    Fri, Jan. 23 SSS 6 Comments

    Summary

    • Sovran has surpassed the dividend payouts prior to the recession as the company recently increased its quarterly payout from $.68 to $.75 per share.
    • Upon closer examination, we can see that the Sovran shares are a “tad” expensive and what I’m really telling you is that this is a good pick when shares pull back.
    • Bottom Line: Mr. Market Likes Uncle Bob and So Do I.
  • I Just Got Another Raise: Thanks Realty Income
    Thu, Jan. 22 O 57 Comments

    Summary

    • Maybe a dividend increase seems boring to you but to me a dividend boost is almost like a message telegraphed to shareholders that the company can “take a lick’n and keep on tick'n".
    • Oftentimes, we (investors) view dividend increases as less meaningful headlines when in fact, they are almost always great road maps for projecting the future success of a security.
    • I have no interest in selling my shares and while I deem the security fairly-valued, I see tremendous opportunity for the company to extend its moat.
    • I see no catalyst that supports a SELL, especially since management just telegraphed me a sign that says, “I’ve got your back covered”.
  • I'm Doubling Down On Gramercy Property Trust
    Editors' Pick • Wed, Jan. 21 GPT 43 Comments

    Summary

    • I was able to research Gramercy in great detail and that investment is paying off – big time!
    • Gramercy may enjoy some of the same characteristics as ARCP; however, I consider Gramercy an investment.
    • That commitment suggests that Gramercy is continuing to build brand equity around the most powerful forces in a dividend investor’s toolbox: durability.
    • The latest 43% dividend increase was important for me as it validates the most meaningful message that management can send to an investor.
  • Physicians Realty Reports Healthy Acquisitions With Growth Off The Charts
    Editors' Pick • Mon, Jan. 19 DOC 33 Comments

    Summary

    • As suspected, DOC shares traded down when the secondary was announced and they rebounded for a weekend closing price of $16.99.
    • Considering the robust growth we have seen since DOC hit the public spotlight, I consider the value proposition promising.
    • I definitely plan to hold onto my shares as I believe there's above average upside as DOC ramps up its overall quality rating.
  • Chatham Rings Up A 25% Dividend Boost
    Fri, Jan. 16 CLDT 18 Comments

    Summary

    • Hotels have been riding high on the rebound and that string demand has bolstered key operating fundamentals such as occupancies, average daily rates, and revenues per available room.
    • Operationally Chatham is well-positioned to increase room rates, with high occupancy (around 84.3%) that increases ADR, driving profits higher.
    • It was no surprise to see a 25% dividend increase this week.
  • Unlocking The Power Of Compounding: REITs That Pay Monthly
    Thu, Jan. 15 ARCP, ARR, CLDT 36 Comments

    Summary

    • By utilizing compounding, your portfolio amplifies the growth of your working money and maximizes the earning potential of your investments.
    • While compounding is certainly a good way to build wealth, some investors invest in monthly paying stocks for a variety of other reasons.
    • Instead of depositing your dividend checks in the bank, think of yourself as the bank.
  • Extra Space Is A Trusted Brand To Buy When Mr. Market Is Snoozing
    Wed, Jan. 14 EXR 25 Comments

    Summary

    • There is little doubt that rates are going to likely move up this year, and that could offer investors with the opportunity to take advantage of the REITs that grow.
    • What I find most attractive about Extra Space is the highly innovative branding model, in which the company sources customers by multiple outlets: internet, call center, and drive-by.
    • I believe that EXR has an extremely visible competitive advantage in its advanced technology assets.
    • This is not a stock I would buy today, but put it on the "wish list" so you're prepared when Mr. Market is snoozing.
  • My REIT Underdog Pick For 2015
    Tue, Jan. 13 CORR 62 Comments

    Summary

    • CorEnergy primarily owns midstream and downstream U.S. energy infrastructure assets subject to long-term triple net participating leases with energy companies.
    • Formerly a business development company, CorEnergy restructured a little more than a year ago to become an energy infrastructure-focused REIT.
    • CorEnergy's business is not as heavily regulated as utilities; the risk is greater but so is the return.
    • From a historic earnings perspective, CoreEnergy appears to be an attractive REIT based on valuation risk.
  • Don't Get 'Sharked' By Manhattan Bridge Capital
    Mon, Jan. 12 LOAN 13 Comments

    Summary

    • Manhattan Bridge Capital charges a fee to extend a loan…sounds like a “kick the can” and make more money as-you-go strategy.
    • While it sounds promising to be investing alongside the loan sharks, I see no value in the puny 6.9% dividend yield.
    • “Shark yield”: a yield in which the investor is getting sharked by the loan sharks.
  • A Uniquely Positioned REIT You Can Buy Under $10
    Editors' Pick • Mon, Jan. 12 AHH 29 Comments

    Summary

    • One of the new REITs on the “Charlie Brown” list is Armada Hoffler Properties.
    • I consider the substantial Insider ownership a good indicator that management is interested in creating value.
    • I believe the shares are mis-priced and there appears to be a likely dividend increase on the horizon.
  • The World's Largest Net Lease REIT Is Ripe For A Takeover
    Thu, Jan. 8 O, ARCP 151 Comments

    Summary

    • "The biggest catalyst for revived activity is today's new breed of activist investor" - Mike Kirby, chairman of Green Street Advisors.
    • With the latest Corvex news, I am more confident that ARCP is "ripe for a takeover", and that could include a private or public investor - or both.
    • If Realty Income were to acquire a large majority of ARCP's assets, I believe it would present the opportunity for continued accelerated FFO growth.
  • This Health Care REIT Is Floating Like A Butterfly
    Editors' Pick • Wed, Jan. 7 HTA 47 Comments

    Summary

    • Today I’m going to walk you through a classic - almost textbook example - of a company that has evolved from a featherweight into a powerful Junior Middleweight champion.
    • HTA's fundamentals are very sound, and I consider the balance sheet equipped to absorb interest rate shocks.
    • As far as 2015 is concerned, I believe that HTA is prepared for battle.
  • My Best REIT Advice For 2015
    Tue, Jan. 6 AAT, ACC, ADC 67 Comments

    Summary

    • Always Diversify.
    • Always Invest with a margin of safety.
    • Always stay humble.
  • Silly Rabbit: Interest Rates Aren't Smashing Down REIT Profits
    Mon, Jan. 5 BRX, DLR, EQR 11 Comments

    Summary

    • The consumer sentiment reading is the highest in nearly eight years as lower gasoline prices drove expectations up.
    • The most recent period of monetary tightening can tell us more about howa Fed Funds hike could impact REITs in 2015.
    • I’vefound that the best advice I can offer investors on Seeking Alpha is to focuson REIT fundamentals.
    • As a true value investor, look for REIT shares that are “being smashed down”, but not the REITs that are “smashed down”.
  • Charlie Brown's List Of 10 REIT Gems Under $10
    Mon, Jan. 5 AHT, APTS, ARCP 96 Comments

    Summary

    • In stands to reason that most small cap stocks are underfollowed by Wall Street so there is limited research available to assist you with weighing in on these risks and.
    • The goal for my $10 stock portfolio is not to produce extraordinary results, but instead to provide you with a safe REIT model in which dividends grow at steady rates.
    • There’s no guarantee that Charlie Brown’s portfolio will be stress free but by identifying risks and following the rules, you’ll be well on your way to “sleeping well at night”.
  • Tanger Factory Outlet Is A Quintessential Wide Moat REIT
    Editors' Pick • Fri, Jan. 2 SKT 35 Comments

    Summary

    • One wide moat attribute for Tanger is its fortress balance sheet, also a valuable moat characteristic in which the company produces very predictable profits from its low cost of capital.
    • One critical element of the wide moat model is to be able to fend off competition and earn high returns on capital for years into the future.
    • I think it would be prudent to address what I consider to be the biggest threat to Tanger’s moat.
    • In real estate, an irreplaceable location can give a company a cost edge and Tanger’s premium assets certainly meet that test.
  • Waiting Patiently For A Wide Moat REIT Bargain
    Editors' Pick • Thu, Jan. 1 ROIC 50 Comments

    Summary

    • For any wide moat company (or business model) the most important element for success is to fend off the competition and earn high ROIC.
    • One competitive advantage for ROIC is the fact that the company only invests in strong economic markets with exceptional demographics and growth characteristics that provide stable income and long-term growth.
    • ROIC is truly a moat-worthy alternative and its pricing power is reflected in the strong operating performance that has resulted in sustainable and growing dividends.
  • My Most Prolific REIT Stories Of 2014
    Dec. 31, 2014 ARCP, AVIV, FRT 18 Comments

    Summary

    • I’m going to close out the year by taking you through 10 of my best articles of 2014…and it was certainly a good year for REITs.
    • I’m not offering any predictions for when rates will rise but I’ll recap 2014 by acknowledging the strong performance of the REIT sector.
    • It’s a fact that dividend-paying stocks have a history of outperforming non-dividend payers and REITs are viewed by many as one of the safest of the high-yielding asset classes.
    • “An investment in knowledge pays the best interest." Ben Franklin.
  • The Most Predictable REITs In 2015
    Dec. 29, 2014 AVB, BRX, DLR 80 Comments

    Summary

    • I’m not against investing in a widely-held ETF like VNQ as long as you understand that what you are getting is the good, the mediocre, and the bad equities.
    • In 2014 I was able to take advantage of the REIT sell-off and cherry pick a few REITs that were on sale.
    • Cal Ripken is nicknamed “The Iron Man” for his “unbreakable” record for the most consecutive games played at 2,632. Source: wikipedia.
    • One of the best tools (that I use) is to filter out the companies differentiated by the same patterns of predictability as Cal Ripken.
  • The Stars Are Lining Up For Starwood Property Trust
    Dec. 29, 2014 STWD 22 Comments

    Summary

    • Starwood Property Trust should benefit from a rising interest rate environment given its high volume of LIBOR-based floating rate loans.
    • Starwood's scale (US and Europe) enables the company to originate and service loans tactically with an expertise in more complex deal flow.
    • I consider Starwood a simpler and safer model than the peer commercial mortgage REITs.
  • Interest Rates Are Coming: My Top REIT Picks For 2015
    Dec. 26, 2014 BRX, CLDT, CSG 195 Comments

    Summary

    • It's no secret in REIT-dom that "Interest Rates are coming".
    • Just as Paul Revere was preparing the patriots for the risks ahead, investors can also be prepared for the risk of rising rates.
    • The biggest risk is still the unknown; however, by studying corporate performance, we are able to better predict the future outcome.
  • Monogram Residential: Waiting Patiently On A Pullback
    Editors' Pick • Dec. 26, 2014 MORE 15 Comments

    Summary

    • One key differentiator for Monogram is the fact the company has the youngest portfolio among the listed multi-family REITS, with an average age of approximately 5 years.
    • There’s really no way that I can get comfortable with the shares in Monogram until I see a few quarters of profitability as a publicly-traded REIT.
    • I'll wait patiently to load up on Monogram when the price is right.
  • Brad Thomas Positions For 2015: Attractive Opportunities Present Themselves In REITs
    Editors' Pick • Dec. 23, 2014 ARCP, AVIV, BT 88 Comments

    Summary

    • By focusing on dividend safety, investors can find the best possible alternatives.
    • Diversification is critical for not only REITs but all asset sectors.
    • Within the Equity REIT sector, I believe that the Healthcare REITs offer the best overall value.
  • I'm Moving Medical Properties Back To BUY
    Editors' Pick • Dec. 22, 2014 MPW 50 Comments

    Summary

    • S&P recently said that it was bumping MPW’s credit rating to BB+ from BB, with stable outlook.
    • I don’t have anything against Germany; however, I was nervous that MPW was fishing in a market where it had no experience.
    • MPW has a REIT model that is differentiated by long-term “critical mission” lease contracts.
    • I’m officially putting MPW on the varsity team: This REIT’s a BUY.
  • CareTust Shines Like A Small-Cap Diamond In The Rough
    Editors' Pick • Dec. 22, 2014 CTRE 24 Comments

    Summary

    • The big risk with CareTrust is the fact that the REIT has SIGNIFICANT concentration with one tenant, Ensign, a diversified healthcare provider with 125 facilities in 12 states.
    • Another risk is the micro-cap coverage related to the security holders and owning this stock is not going to give you that “sleep well at night” feeling.
    • CareTrust is rated “B” by S&P meaning the company is “more vulnerable” for default.
    • I believe CareTrust could become a small-cap jewel – or a "diamond in the rough" that offers a satisfactory reward for a skilled and patient investor.
  • An Intelligent Way To Think About Healthcare Trust Of America's Reverse Stock Split
    Dec. 18, 2014 HTA 72 Comments

    Summary

    • HTA has done an amazing job for shareholders this year, generating a total return of over 36%.
    • In a reverse stock split, investors exchange several shares of their existing stock for a smaller number of new shares of stock.
    • The reverse stock split makes HTA more “investable’ – only a positive for shareholders.
  • Spirits Are High With Monmouth Real Estate
    Editors' Pick • Dec. 16, 2014 MNR 5 Comments

    Summary

    • As evidenced by Monmouth’s dividend history, the company has not been able to cover its dividend without the help of its securities gains.
    • However, it appears that in 2015 Monmouth will be in a better position to grow earnings to the point that AFFO will cover the dividend.
    • It’s clear that Mr. Market’s spirits are higher than mine.
  • A Peachy REIT That Pays Mouth-Watering Dividends
    Dec. 15, 2014 APTS 37 Comments

    Summary

    • Ben Graham often argued that some hiccup in the business could cause the stock price to collapse within a few years, giving the value investors an opportunity to load up.
    • The most notable name (for me) on APTS C-roster is Dan Dupree.
    • APTS is still a small-cap (limit your exposure) but under-valued and being practically ignored.