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Brad Thomas

 
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  • An Intelligent Way To Think About Healthcare Trust Of America's Reverse Stock Split
    Today, 8:42 AM HTA 35 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 • Tue, Dec. 16 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
    Mon, Dec. 15 APTS 31 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.
  • An Iron Mountain Blueprint For Dividend Investors
    Editors' Pick • Mon, Dec. 15 IRM 11 Comments

    Summary

    • The biggest hurdle for the Boston-based company was receiving a Private Letter Ruling (or PLR) from the IRS and specifically a ruling regarding the characterization of the company’s steel racking.
    • For a company to be considered a REIT, a critical question is whether the majority of its assets are “real property” as the term is defined by tax codes.
    • Having a unified document management model seems to offer “wide moat” framework that is also the differentiation that I’m looking for in a REIT investment.
  • I Just Got Another Raise - Thanks Ventas, Inc.
    Editors' Pick • Fri, Dec. 12 VTR 24 Comments

    Summary

    • “Greatness isn’t just talent. It’s talent applied consistently.” Gary Player.
    • Ventas, Inc. declared its quarterly common dividend of $.79 per share, a 9% increase from the prior dividend of $.725 per share.
    • I would wait for a 10% sell-off or a price of $66.00 that represents a 4.5% dividend yield (based on the new payout of $2.97 per share).
  • I Just Got Another Raise - Thanks W.P. Carey
    Thu, Dec. 11 WPC 38 Comments

    Summary

    • I got another raise and that’s becoming a great feeling since I keep plowing my golden nuggets back into Carey to accumulate more shares.
    • The latest dividend bump announced by Carey also propels the company to first place on the 2014 dividend growth scoreboard.
    • It’s great to see Carey spreading the love and it’s clear that management knows how important dividends are to my retirement plans.
  • If I Built This REIT From Scratch, Would It Be This One?
    Wed, Dec. 10 LTC 30 Comments

    Summary

    • I would build a REIT that offered the most powerful sources of income – a revenue stream that delivers the most predictable source of rent with limited supply.
    • If I built this REIT from scratch, I would like Omega’s dividend growth rate, Ventas’ management team, and LTC’s balance sheet.
    • Mr. Market has priced LTC’s dividend yield sub 5% and the current price of $42.36 makes the valuation appear fairly valued.
  • An Appetizing REIT With 9% Icing On The Cake
    Tue, Dec. 9 NRF 117 Comments

    Summary

    • Many of the mortgage REITs are beginning to dabble in real estate as a means of creating a consistent cash flow and a more durable dividend.
    • This year, NorthStar quit being a dabbler and transformed itself into an equity REIT with some real estate finance as gravy.
    • NorthStar has all of the ingredients to produce something special - top that off with the 9.1% icing on the cake.
  • A Net Lease REIT That I'm Adding To The SALSA Club
    Editors' Pick • Mon, Dec. 8 SRC 17 Comments

    Summary

    • Having more than doubled the size of the portfolio (since the IPO) SRC has become a much more diverse platform.
    • Spirit has reduced its concentration with these tenants: Shopko now accounts for 14.3% of rent and 84 lumber accounts for 3.2%.
    • I would not define Spirit's current share price of $11.50 a bargain - I would describe the value as slightly undervalued.
  • A Fundamental Analysis Of American Realty Capital's Likely Dividend Cut
    Mon, Dec. 8 ARCP 178 Comments

    Summary

    • My biggest concern with ARCP has to do with the unusually high yield that also signals that the dividend could be in danger of being reduced.
    • The facts were clear then, and they are crystal clear now: ARCP is staring at a dividend cut.
    • ARCP is back to square one: a company that has internal conflicts of interest due to its asset sourcing model.
  • Santa's Custom Made Preferred REIT Portfolio
    Mon, Dec. 8 AHT, CDR, NNN 21 Comments

    Summary

    • Investors must understand the features and terms of preferred stock in order to successfully invest in this part of the capital structure and in this asset class generally.
    • If an investor were to simply equal weight the portfolio, the resultant yield would be 7.34%, a whopping 2.46% higher than a portfolio of the REITs’ common stocks!
    • The “All I Want for the Holidays Preferred REIT Portfolio” is a portfolio designed to help intelligent REIT investors maintain that holiday cheer.
  • Flight To Quality: 14 Stalwart REITs That You Should Consider
    Fri, Dec. 5 DLR, ELS, ESS 48 Comments

    Summary

    • Numerous studies have shown that companies that raise dividends outperform those that don't pay dividends.
    • I was not looking for a showboat who could throw up 3's every time down the court.
    • It's not just luck that these 14 REITs survived and kept paying and increasing dividends.
  • A Shark Tank Approach To These Riskier REITs
    Thu, Dec. 4 ARCP, CCG, CSG 60 Comments

    Summary

    • I’m not a prominent investor like Mark Cuban or Kevin O’Leary but that doesn’t mean I can’t be as brutal when it comes to deploying my hard earned money.
    • I sometimes see deals that look attractive because of weaknesses or hardships that exist within a company’s corporate framework.
    • While I recognize that sharks are subjected to the strongest emotion called greed, intelligent investors must practice discipline.
  • Lamar REIT Is Like A Dog That Don't Hunt
    Editors' Pick • Wed, Dec. 3 LAMR 5 Comments

    Summary

    • There are three companies that collectively control around 56% of the U.S. outdoor advertising market.
    • Billboard contracts are much shorter term and the capex requirements are highly erratic.
    • “When I see a bird that walks like a duck and swims like a duck and quacks like a duck, I call that bird a duck.” James Whitcomb Riley.
    • “That dog don’t hunt.” Unknown.
  • Flight To Quality: 5 New Dividend REIT Challengers
    Tue, Dec. 2 CBL, EXR, GGP 31 Comments

    Summary

    • As I have suggested in previous articles, a company’s dividend record provides valuable clues to underlying corporate performance.
    • Dividend increases are like weather forecasters – they both provide meaningful projections or forward-looking indicators for what’s looming ahead.
    • While no company’s earnings stream is infinite, the quality of the company’s profits can be relied upon as a measure of predictability.
  • This REIT Should Benefit From Cyber Monday, But There's No Sale
    Mon, Dec. 1 DLR 8 Comments

    Summary

    • Cyber Monday officially launched on November 28, 2005 and now nine years into the promotional campaign, shopping trends continue to hit records.
    • While brick and mortar stores aren’t necessarily beneficiaries of Cyber Monday, the Data Centers are.
    • There will be no cyber sale for Digital Realty today - shares are trading near the 52-week high.
  • A Buy Recommendation For This Monthly-Paying Stocking Stuffer
    Mon, Dec. 1 CLDT 17 Comments

    Summary

    • Chatham's third-quarter results validate the company's strategy to own the best assets in the fastest-growing markets with high barriers to entry.
    • Chatham has minimal CapEx obligations for the next several years, and the company expects free cash flow to be very strong.
    • A slight pullback will put me in ownership status, and that's why I'm recommending Chatham Lodging as a monthly-paying stocking stuffer.
  • Making Magic: Monthly REIT Dividends
    Editors' Pick • Sat, Nov. 29 CLDT 54 Comments

    Summary

    • The magic trick requires two things: the reinvestment of dividends and time.
    • The more time you give your investments, the more you are able to accelerate the income potential of your original investment.
    • By using compounding, your portfolio amplifies the growth of your working money and maximizes the earning potential of your investments.
  • Are There Any REIT Bargains On Black Friday?
    Fri, Nov. 28 BRX, CBL, DDR 35 Comments

    Summary

    • In full disclosure, you will not see me standing in line at 3 am regardless of the highly discounted merchandise.
    • Sometimes bargains are hard to come by and it takes considerable patience to resists the temptations – the marketing bonanza – that exists on Black Friday.
    • I’ll explain the margin of safety to my daughter just as I would an individual investor, “if it becomes part of your DNA, you really can’t go wrong”.
  • The REIT Way To Feast On Dividends And Sleep Well At Night
    Wed, Nov. 26 CORE, DLR, DOC 28 Comments

    Summary

    • Today there are over 200 REITs in the U.S. representing a growing number of property sectors and sub-sectors.
    • REITs are no longer an unknown asset class that is just an alternative, like desert.
    • Member to include REIT stuffing as a core component within your asset portfolio mix. The table is set and the menu is fit for a King!
  • I'll Pay More For A Latte, But I Can't Pay More For This REIT
    Editors' Pick • Tue, Nov. 25 NNN 21 Comments

    Summary

    • I must spend considerable time scrutinizing the opportunity to make sure that the brand promise supports the risk I’m taking of owning shares at a higher price.
    • National Retail Properties offers investors with an extraordinary brand promise based on growing dividends. The question remains however, should I buy the shares today?
    • Ben Graham also reminds me that the value investor’s purpose is to capitalize upon "a favorable difference between price on the one hand and indicated or appraised value."
    • I must maintain some kind of buffer to protect against market fluctuations, and perhaps the most logical time to pick up shares is in a sell-off.
  • There's Only One Ingredient Missing From The Proposed Dillard's REIT
    Mon, Nov. 24 DDS 9 Comments

    Summary

    • It seems that Wall Street is ignoring the most important element for growing a business: Management Matters.
    • Marcato makes the argument that the proposed Dillard’s REIT would trade in line with some of the premium Net Lease REITs, I disagree.
    • There’s simply more to the REIT business than aggregating assets.
  • How To Buy A Few Premium REITs That Deliver Something Special
    Mon, Nov. 24 ARCP, FRT, O 95 Comments

    Summary

    • It was Ben Graham’s star student, Warren Buffett, who took the concept of value investing to the next level when he said “price is what you pay."
    • "Brand equity is the status or strength of the brand and its ability to meet or exceed the expectations consumers use to define the category ideal," said Robert Passikoff.
    • To build a logical argument on differentiation, you must have the credentials to support your differentiating idea.
    • The practice of identifying sound investments through application of the margin of safety method is nothing less than a quantum leap forward in minimizing investment risk.
  • Why Is Mr. Market Raining On This Small-Cap Farming REIT?
    Fri, Nov. 21 FPI 107 Comments

    Summary

    • With such a small number of shares being traded, Farmland lacks the Wall Street coverage and since the IPO earlier this year (April 2014) the shares have been significantly underestimated.
    • Even for the low flying crop dusters, Farmland is flying under the radar and the company has very little institutional coverage.
    • The most important aspect to this small-cap REIT selection is demand: the business model is steady and repetitive and the supply of farmland is limited.
  • Quit Chasing Silly Rabbits And Invest For The Long Run
    Editors' Pick • Tue, Nov. 18 WPC 104 Comments

    Summary

    • Shortly after I sold my shares in ARCP, I ordered a book for my kids called “The Tale of Tortoise Buffett and Trader Hare”.
    • “The turtles which outrun the hares are learning machines. If you stop learning in this world, the world rushes right by you." Charlie Munger.
    • I’m betting on slow and steady and the predictable dividend history that makes me sleep well at night.
  • REITWorld 2014 Recap: Regency Centers Corporation
    Mon, Nov. 17 REG Comment!

    Summary

    • In 1993 Regency Centers initiated a public offering by raising around $108 million and that initial capitalization grew into a grocery-anchored shopping center dynasty.
    • Today Regency owns 318 shopping centers and by focusing on infill grocery-anchored centers in areas with household incomes above the national average.
    • A few days ago while attending the annual REITWorld conference I caught up with Regency Center’s Chairman and CEO, Hap Stein.
  • This REIT Band-Aid Will Only Make The Sears Brand Fade
    Mon, Nov. 17 SHLD 30 Comments

    Summary

    • It’s funny, the four letter REIT word seems to be the “happy dance” for many companies that own real estate and struggling with liquidity.
    • If Sears is already losing money at the store level, how is the company going to become profitable by adding another expense to the bottom line?
    • The REIT idea is just another “can-kicking strategy” that will lead the company down the path of bankruptcy much faster.
    • The best REITs today drive share value by managing risk effectively – that includes balance sheet management, portfolio management, and human capital management.
  • SOHO Is A Small-Cap REIT That Looks Really Cheap
    Mon, Nov. 17 SOHO 10 Comments

    Summary

    • SOHO has a plenty of runway for growth as the company intends to continue building out its Southeastern US footprint.
    • SOHO has established an attractive short-term dividend history (6th dividend increase in past 9 quarters) and that reflects sound corporate performance.
    • The lack of visibility means that unexpected news about a small-cap can cause a spike in its share price.
    • I’m a buyer when I see shares hit $7.00 – but I won’t be loading up the truck.
  • REITWorld 2014 Recap: Agree Realty Corp. (Video)
    Fri, Nov. 14 ADC 2 Comments

    Summary

    • Agree Realty Flies Under The Radar is the only Net Lease developer on the NYSE.
    • Agree combines its acquisition and development business in a unique method in which the Michigan-based REIT generates higher than average investment spreads that in return result in higher dividends.
    • Agree’s fundamentals have improved considerably and management is dedicated to delivering steady and growing dividends.
  • REITs Are Prime-Time Players, Baby!
    Fri, Nov. 14 CSG, DLR, HCP 62 Comments

    Summary

    • Earlier this week, CNBC reported that S&P Dow Jones was considering adding Real Estate Investment Trusts (REITs) as a dedicated sector.
    • Equity REITs have never been financial companies, and should never have been included in the Financials sector.
    • As I have written in several articles on Seeking Alpha, the valuation process is entirely different for real estate companies and for financial companies.
  • REITWorld 2014 Recap: Brixmor Property Group Inc.
    Wed, Nov. 12 BRX 6 Comments

    Summary

    • By spinning off from Blackstone Group, Brixmor was able to raise around $950 million and commence operations capitalizing with assets of around $10 billion.
    • Second only to Kimco Realty in size, Brixmor forged its footprint in the REIT space with a massive portfolio of 522 shopping centers and neighborhood centers.
    • Last week at REITWorld 2014 I had an opportunity to catch up with Brixmor Property Group’s CEO, Michael A. Carroll.
  • REITWorld 2014 Recap: Healthcare Trust Of America
    Wed, Nov. 12 HTA 24 Comments

    Summary

    • I have been pleased with the performance as HTA is one of my best Health Care REITs with a total return (since January 1st) of over 30%.
    • Even during the brief time that I have owned HTA the company’s fundamentals have improved considerably; as a result, a modest dividend increase was recently announced.
    • Last week at REITWorld 2014 I had an opportunity to catch up with Healthcare Trust of America’s CEO, Scott Peters.