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Silly Rabbit, Externally-Managed REIT Tricks Are For Kids
- I have often argued that the externally-managed REIT model is inherently misaligned resulting from various conflicts of interests.
- If Ventas doesn’t acquire HCT, the miserable investor will look foolish when he finds out he lost the buyer of his Ford pickup truck.
- Although SNH has a disadvantage in terms of its exposure with one self-dealing tenant, the company does enjoy a competitive advantage in its balance sheet execution.
- I just can’t come to grips with investing my hard-earned capital into an externally-advised REIT.
These REITs Should Weather The Storm
- It's much easier to predict the future value of a REIT due to the contractual make-up of the revenue streams.
- Most high-income investments provide only income with little or no capital appreciation, but equity REITs produce both.
- The companies that survive will be the fittest and most durable operators that have proven to be the most consistent over time.
A Net Lease REIT Differentiated By Discipline
- Somewhere National Retail Properties seems to get lost in the shuffle.
- Unlike several of the larger net lease REITs, NNN focuses exclusively on "small-box retail" and the company maintains a consistent strategy of owning relatively smaller transactions.
- Part of NNN's differentiated net lease approach is the higher cap rates that the company generates.
- The most recent bit of good news for NNN has been the announcement by Susser to merge with Energy Transfer Partners.
I Found A Nice Margin Of Safety In Omega Healthcare Investors
- Following the principles of value investing, I look for stocks that are cheap, as I know that's the most reliable way to grow my nest egg.
- My research and instinctive greed told me that there was added security in knowing that Omega had attractive long-term characteristics.
- The dependability of the dividend is the primary reason that I own this stock, and I'm satisfied the shares will appreciate and provide me with a long-term winner.
Is Monmouth Ready To Run?
- The purpose for this more recent update on Monmouth is to determine whether or not this REIT could be a candidate in my investment stable.
- So Monmouth has plenty of spark but is this horse ready to run?
- As acquisition velocity continues, Monmouth’s recurring income (or AFFO) should provide more clarity as to whether a dividend increase is coming.
Healthcare Trust Of America's Selective Acquisition Strategy Pays Dividends
- It’s clear that without leveraging the portfolio HTA has not been in a position to raise its dividend; however, by adding more high-quality revenue, I suspect that HTA will soon.
- HTA’s latest acquisition validates my thesis and I’m satisfied that the focused health care REIT will continue to seek high-quality MOB assets that will provide meaningful earnings power.
- HTA shares should hit $13.00 soon (and keep climbing).
Ventas Is A Sleep Well At Night REIT That Lays Golden Eggs
- The man was never satisfied with his daily profit so he decided to foolishly slaughter the hen in hopes that there would be a treasury inside the hen.
- By aggregating retail investors in the non-traded REIT space, Nicholas Schorsh has built an incredible machine that incubates REITs until they are ready to go public.
- Dividends represent the “golden eggs” whereby investors can look for valuable clues that provide insight into future performance.
- Given the company’s low cost of capital, any new investment (by Ventas) with a cash yield of 5.5% or higher should be accretive.
A Brand New Mortgage REIT That May Deliver Something Special
- UDF is a mortgage REIT with a differentiated model that provides debt and equity capital solutions to leading developers and home-builders.
- UDF provides an investment alternative to regional banks and home-builders for investors to participate in the continuing U.S. housing recovery.
- UDF raised around $615 million utilizing the RCS Capital (Nick Schorsch platform) model and during that time the company was able to aggregate loans that averaged around 13%.
- I intend to monitor the shares to establish an entry price at around $19.00.
What's The Magic That Moves ARCP?
- Given the extraordinary pace in which ARCP has announced these transactions, it clear that the market is confused.
- Most investors don’t see the value in Cole Capital and it seems that is one of the reasons that the market is placing a lower value on ARCP shares.
- No smoke and mirrors, just plain old dividend magic.
Is CyrusOne A Serious One For My REIT Portfolio?
- In terms of ownership, data centers are particularly unique in that they are one of the few sectors within real estate that really have a diverse investor base.
- Admittedly, my skill set is real estate, and as much as I've tried to educate myself on the ever-expanding cloud-based platform, the business model is highly complicated and seems to make me drowsy.
- So, as the title suggests, is CyrusOne a "serious one" for my REIT portfolio?
Gramercy Property Trust Leaves Them All In The Dust
- In September 2013 I decided it was time to “put some skin in the game” and I purchased shares at $4.19.
- Gramercy is not only my best REIT pick but my best stock, period.
- After a hiatus of more than five years, GPT announced (in March 2014) that the company was resuming its dividend payment to common stockholders.
- Gordon Dugan and his team are hitting all cylinders and with a gas tank full of capital, I expect to see continued success.
Is American Realty Capital Properties' 8% Dividend Yield Built To Last?
- Red Lobster once enjoyed a powerful competitive advantage in the restaurant space, it seems that the brand has significantly eroded and appears to be less sustainable over time.
- When it comes to investing, those emotional less-than-rational decisions are marketing gold. It’s those that let companies charge a premium for their products, and investors that rake in the profits.
- I consider the latest sell-off to be a selective buying opportunity. ARCP shares closed at $12.34 with a dividend yield of 8.10%.
- I consider the latest sell-off to be a selective buying opportunity. ARCP shares closed at $12.34 with a dividend yield of 8.10%.
You Can't Trump This REIT
- A successful brand must be unique, and it must offer a differentiated product or service to be great.
- It’s quite clear that the way that a REIT produces powerful sources of repeatable income is in the form of dividends.
- Durability implies that a company can take a financial punch and come back swinging. In order to do that a company must enjoy a predictable earnings stream.
- It’s important for me to own REITs just like Trump would own towers.
Where's The Dividend Growth For UMH Properties?
- I wasn’t looking for a tortoise as I was betting that UMH would perform more like a rabbit. What could I be missing?
- UMH management makes a strong case that there is intrinsic value in the investments that are being made and that over the long-term the value of the company could provide investors with substantial appreciation.
- A dividend cut would be costly and I need to make sure that I don’t fall victim to the temptation of chasing a high-paying REIT that offers modest growth.
- It’s clear that UMH is not in a position to raise its dividend and that’s one of the primary reasons that the stock has underperformed the peer group.
Taubman Is A Time Tested REIT Brand
- It’s the durability component that makes a REIT brand truly attractive and what makes the underlying value increase substantially.
- Buying a “blue chip” on sale can be awfully rewarding and I wish I was able to scoop up a number of gems late last year.
- Taubman is an icon of operational excellence as the mall REIT has successfully orchestrated a showcase of prudent financial management.
- Taubman would be a complimentary addition to my portfolio; however, I need to shy away from the instant gratification game and wait on a more attractive entry point.
An Inside Look At The 'Smoking Hot' Retail Opportunity Investments Corporation
- Check out this video interview with Stuart Tanz, CEO of Retail Opportunity Investments Corporation.
- This REIT is as hot as a firecracker and given the CEO’s (Stuart Tanz) drive for success, I suspect ROIC will top $20 by year-end.
- ROIC is a solid REIT that trades at sound value (P/FFO of 18.1x).
Tanger Is A Highly Predictable Dividend Machine
- As the retail industry has evolved, Tanger was the first to grasp the retail distribution channel in which goods could enjoy a longer life cycle than the traditional clearance concept.
- Earlier this week, I caught up with Tanger's CEO, Steve Tanger, to discuss his company's first-quarter earnings and its enviable brand of dividend repeatability.
- Ben Graham has trained me to spot a bargain and although Tanger has a bargain-based model of repeatability, the shares don't indicate there's a sale today.
HTA Delivers On Its Dedicated Management Model
- As a result of the increased asset management and leasing platform, HTA is doing a majority of leasing and negotiations directly with tenants, reducing the overall cost paid to third-parties.
- While visiting with members of the company’s executive management team I was able to meet with Amanda Houghton, Executive VP of Asset Management.
- As further evidence of HTA’s improving circle of competence S&P recently upgraded HTA’s investment grade credit rating to BBB, with a stable outlook.
Schorsch Hooks A Big Lobster
- Darden has a lot of real estate on the balance sheet - around 63% of assets - and that seems to be a significant element for the fortress-like brand.
- The only REIT that could possibly take down Red Lobster's real estate (by itself) is American Realty Capital Properties.
- Today ARCP announced that it had entered into an approximate $1.5 billion sale-leaseback transaction for over 500 Red Lobster restaurant properties.
This REIT 'Had Me At Hello'
- It's rare that I give a rookie REIT the thumbs up on the first date; however, as Jerry Maguire said, "you had me at hello".
- What impressed me most about ROIC is that the company started as a “blank check” Initial Public Offering, meaning that the REIT commenced with no assets and lots of cash.
- ROIC’s FFO on a per-share basis also increased, notwithstanding a sizable increase in the shares outstanding due to over 21 million warrants being exercised since the beginning of 2013.
- Although not a polished jewel then, my impulse told me that ROIC was going to be a big time contender.
Why Does Mr. Market Fear American Realty Capital Properties?
- This is no fairy tale, especially when we are dealing with real money. This is not monopoly and I have a lot riding on ARCP.
- ARCP’s latest quarter was significant based upon the fact that the New York-based REIT has demonstrated its synergistic complexities becoming simpler.
- Since there is no operational risk associated with single-tenant investing, much of the net lease business is more about math than science.
- Mr. Market does not comprehend the potential for ARCP and it clearly underestimates the rewards for growth.
Solid Quarter For This Life Science REIT
- Capital raising was spectacular in the first quarter with more than $23 billion of biotech financing and partnering transactions, again ahead of what was a very strong 2013 level.
- Since going public almost ten years ago (August 4, 2004), BioMed has been able to carve out a growing niche and now the company has evolved into a highly innovative landlord.
- I moved out of all of my shares in Medical Properties Trust due to under performance and increased competition in the hospital sector.
WPT Industrial Is A High-Paying Canadian REIT That Pays Monthly
- One of the reasons that WPT listed on the Canadian exchange was the fact that the company could achieve more "shelf space" in Canada than in the US.
- Based on US standards, WPT is a highly leveraged REIT.
- WPT is trading at cheap valuation of 9.8x Price-to-Funds from Operations (P/FFO).
Why Should You Maintain A Balanced Diet Of REITs?
- Great salsa is all about diversification. Only by adding diverse ingredients together can we achieve the desired outcome.
- REITs have been around long enough (5 decades) and generated solid enough returns that I don't view REITs as an alternative class.
- Since the emergence of the modern REIT structure, dividends have been a large factor in the outperformance of REITs relative to the broad equity market.
Healthcare Trust Of America Is As Pure As The Driven Snow
- As a "pure play" REIT, HTA is a dedicated owner of medical office buildings, with a portfolio of 114 buildings (and over 14.1 million square feet) in the 27 states.
- HTA ended the quarter with excellent credit metrics, with debt-to-enterprise value of 31%, one of the lowest in our peer group, and debt-to-proforma EBITDA of 5.3 times.
- This is a "pure play" bet that's paying off, and I believe the price could hit $13.00 – especially "when there's a dividend increase.".
What Is Your Risk Tolerance With American Realty Capital Properties?
- If you're unwilling to take the chance that an investment that might drop in price, you have little or no risk tolerance.
- Risk tolerance simply describes whether you invest in real estate, stocks, the quarter slot machine, high stakes blackjack, or stay at home with a piggy bank – or maybe a.
- I believe that the market has demonstrated that ARCP has a high degree of risk and as we saw this week, a simple acquisition rumor caused shares to slide.
Why It's Important To Own Predictable REIT Stocks
- The dividends that REIT investors receive out of earnings haven't been reduced by taxes at the corporate level, making REITs tax-efficient conduits for real estate income.
- Over the past 20-plus years, listed equity REITs have provided 30% more dividend income than small-cap value stocks in the Russell 2000V, with 43% less variability.
- Many REITs are now increasing dividend payouts, and that’s the best possible evidence that the security is safe and management has an alignment of interests.
The Smallest Health Care REIT That Pays The Highest Dividend
- When it comes to health care investing, DOC is a like a “kid in a candy shop.”.
- DOC targets unleveraged investment returns between 7% and 10% and the company has in excess of $300 million of investment properties under review.
- DOC's current dividend yield is 6.72% - the highest yield in the Health Care sector.
- DOC’s IPO and secondary offering (in December) were oversubscribed by a significant amount and over 60% of the company’s shareholders are Institutional Investors.
Ventas Posts Another Solid Quarter And Enters The United Kingdom
- After the broad REIT sell-off last May, it seems that Mr. Market has finally begun to recognize Ventas for its "blue chip" credentials.
- In the latest quarter, Ventas increased its cash flow by over 23% (since last year).
- I would recommend buying Ventas shares on market weakness (under $60).
- For an investor looking for "big 3" health care REIT exposure today, I believe that HCP represents the best opportunity.
Don't Follow The Herd, Consider STAG Instead
- In the world of investing there is a natural tendency to "follow the herd" and become fixated on the irrational exuberance of the market.
- Given STAG's strong growth prospects and having switched to a monthly distribution, it seems likely that the company’s dividend expansion will grow in frequency.
- By following the herd, some market timers may look at the one-time slide last week as weakness.
- I believe STAG represents a strong buying opportunity and I'm moving my TARGET price to $25.00.
Ramco-Gershenson Is A REIT That Could Bounce Or Be Bought
- Ramco-Gershenson is trading at $16.16 a share with a Price to Funds from Operations (P/FFO) multiple of 13x. That’s around 15% below the peer average of 15.5x.
- What’s even more interesting to me is the fact that Ramco-Gershenson is what I call a “tweener.”.
- In REIT-dom the shopping center sector is getting crowded.
- This REIT is “ripe” for a “combination” and the shares are somewhat attractive.
The REIT Way To Invest In A Wide Moat Of Dividend Repeatability
- The larger moats could enhance the defensive strategies and allow the royal families to remain competitive in battle.
- Warren Buffett has used the term "wide moat" at least 20 times since 1986 to describe his investment process in annual letters to Berkshire Hathaway shareholders.
- Companies with wide economic moats have a better chance of long-term survival, and they also help to protect revenue streams, profitability, and market share.
- Much like the evolution of fortresses, REITs have also evolved (over 5 decades) into an asset class with wider economic moats that enjoy a better chance of long-term survival.