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Brad Thomas  

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  • 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 38 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 25 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 203 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 52 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 38 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 • Dec. 15, 2014 IRM 15 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 • Dec. 12, 2014 VTR 28 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
    Dec. 11, 2014 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?
    Dec. 10, 2014 LTC 34 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
    Dec. 9, 2014 NRF 127 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 • Dec. 8, 2014 SRC 19 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
    Dec. 8, 2014 ARCP 199 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
    Dec. 8, 2014 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
    Dec. 5, 2014 DLR, ELS, ESS 53 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
    Dec. 4, 2014 ARCP, CCG, CSG 61 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 • Dec. 3, 2014 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
    Dec. 2, 2014 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
    Dec. 1, 2014 DLR 9 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
    Dec. 1, 2014 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 • Nov. 29, 2014 CLDT 64 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?
    Nov. 28, 2014 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
    Nov. 26, 2014 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!