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You're Not A Sucker, But We All Should Be Better Second-Level Thinkers
- My intent was to provide investors with a harbinger – or warning – that chasing yield – for the sake of yield – can be dangerous.
- For the record, consider yourself warned, not insulted, and if anyone was offended by my use of the word “sucker,” I was not aiming the message at YOU.
- It’s just a matter of keeping risk under control and making sure that the returns you realistically expect are worth the risk you are taking.
Sucker Yield REITs: Does Annaly Capital Management Qualify?
- Annaly does well in a falling rate environment, but not so well in a rising rate environment.
- The consistency of funds available for distribution (and therefore dividends) will be adversely affected by the expected move in rates.
- It's important to recognize that because Annaly doesn’t enjoy a highly predictable dividend history, the successful investor must advocate time and resources on understanding the more complex hedging strategies.
- There is absolutely no margin of safety that I would accept to invest in a business model that has no relevant method of producing consistent earnings over time.
It's Payday: These REITs Yield At Least 5% And Grow Dividends By At Least 5%
- It’s important to recognize that rising interest rates will further bolster the real estate recovery while strengthening underlying operating earnings.
- I tell people, almost daily, the most important metric for me, when it comes to REIT investing, is dividend safety.
- When you examine the two ways of getting paid to invest – capital gains and dividends – it’s natural that dividends have special appeal.
Why Will This New Net Lease REIT Be A Game Changer?
- Most of the Triple Net REITs are focused on credit underwriting and few of them are in the trenches looking at unit-level economics.
- While the Triple Net industry has enormous size, STORE focuses on the highly fragmented sub-sector with few participants addressing the long-term capital needs of middle-market and larger unrated companies.
- STORE is more of bank than a REIT. The company underwrites its investments based more on contract risk than credit risk.
Has Campus Crest Hit Bottom?
- Campus Crest appears to be floating at the bottom of the ocean floor.
- The catalysts offer good upside although the dividend payout ratio is tight.
- I’m going to start to nibble on a few shares later in the week.
ClubCorp Is A Consolidator That Could Add Distance To Your Game
- "Considering that my properties come with the success ratio now referred to as “the Trump Factor,” I would say that the value is significant.” Donald Trump.
- The purpose of this article is to provide you with an alternative to invest like Trump.
- I believe the inexpensive ClubCorp shares could be a nice "sand wedge" for your investment portfolio.
The Pathway To Creating Wealth With REIT Diversification
- One key part of the diversification benefits of owning REITs has to do with the longer-term market cycles.
- Why go home early when you can take advantage of the diversification benefits and contrasting market cycles?
- Real estate has an average 18-year cycle so the bull markets for the real estate sector is much longer than the stock market business cycle.
If STAG Industrial Was A Car It Would Be A Mustang
- Triple Net REITs hold their value extremely well and because of the long-term nature of the leases, there is considerably less volatility in cash flows.
- Although the Triple Net REITs do pay the highest dividends in the equity REIT sector, I own shares in these REITs because of the dependability of the dividend income.
- STAG Industrial is the All-American muscle car in my REIT portfolio.
- I’m very confident with the management team and the disciplined risk management practices that make-up the “muscle-like” investment thesis.
I'm Waiting Patiently For This Blue Chip REIT To Go On Sale
- It’s pain to see that Mr. Market isn’t cooperating with me – since January 1st (2014) NNN has been the best performing Triple Net REIT.
- NNN is better positioned to successfully execute its strategy than many other Triple Net peers in a rising interest rate environment.
- NNN is executing at ALL CYLINDERS and there are few REITs that I covet and this is one of them.
- Finding attractive dividend-paying stocks is only one piece of the puzzle. Buying them is another piece.
Sucker Yield REITs: Does Whitestone Qualify?
- “A ridiculous yield combined with an inherently vulnerable business model that sends ominous signals of doom.” Josh Peters, author of The Ultimate Dividend Playbook.
- As a true measure of protection, it’s critical that investors don’t look at the yield until analyzing the safety of the dividend.
- This article is my first in a series called “Sucker Yield REITs” and I intend to provide a meaningful and quantitative analysis on REITs that appear to be “sucker yields”.
- I’m not tempted by the “sucker yield”; just show me a REIT with a dividend payment that lasts like an everlasting gobstopper!
This REIT CEO Is The 'Real Deal' With Durable Dividend Appeal
- Within my short-list of best CEOs there is one that stands out above the rest.
- What’s important to recognize is that Debra Cafaro was not a typical CEO when she was hired in 1999, she was somewhat of an underdog.
- I’m not pulling any punches, Debra Cafaro is the “real deal” and she can trade jabs better than anyone else in REIT-dom.
I'm Glad I Have This West Coast Gem In My REIT Portfolio
- I remember building a shopping center in a rural market around twenty years ago and I had steel in the air before signing the first lease.
- So now you have it, I’m extraordinarily critical when it comes to Shopping Center REITs.
- One of my biggest lessons as a real estate developer was to only invest in high-quality markets; that’s where property fundamentals are the strongest.
- With an expanded institutional base, ROIC shares are becoming harder to pick up “on the cheap” and the high-quality asset mix is highly correlated to the current valuation premium.
Should An Intelligent Investor Buy This Cyber-Focused Office REIT?
- COPT does not focus on leasing to tenants engaged in weapon system production.
- COPT has a strategic tenant niche that provides real estate solutions serving a specialized cyber-based platform.
- The dividend cut in 2012 was substantial, and since that time, the company has generated reduced earnings (FFO per share).
- I can't justify an investment in this REIT without adequate protection of principal.
Sleep Well At Night With These 5 REIT CEOs Behind The Wheel
- It’s important to think like an owner, not an investor.
- “It must never be forgotten, that a stockholder is an owner of the business and an employer of its officers.” Ben Graham.
- “What separates the winners from the losers is how a person reacts to each new twist of fate.” Donald Trump.
- When a company has a consistent record of paying and increasing its dividend, it prompts me to believe that the management team is committed to investors.
A Few REIT Lessons Targeted For Millennial Investors
- The common denominator for all millennials is that they have all been exposed to the most catastrophic financial event of the century – The Great Recession.
- It was not only the millennials who were touched by the Great Recession, it was just about everyone.
- I was not born as a value investor but after experiencing significant losses stemmed by the Great Recession, I have reincarnated as more risk-averse investor seeking one investment objective.
- It became increasingly clear to me that I could build back my investment portfolio but I first had to tap into my God-gifted intellectual property.
Could New York REIT Be A Takeover Target?
- According to sources, NYRT is paying an estimated 4.75% cap for the Twitter building and that will basically max out the credit facility.
- Why wouldn't Empire State Trust acquire NYRT?
- NYRT’s mastermind, Nicholas Schorsch, has shown a propensity to sell so that he can publicize a "win" and sell more non-traded shares - where his bread is really buttered.
I'm Staying On The Gramercy Property Trust Train
- Since my initial investment my total return in Gramercy is over 55% (since September 3, 2013).
- In order for Gramercy to “move the needle” it must continue to feed the engine with accretive high-quality net lease investments.
- So unlike the majority of Gramercy’s peer group, the majority of total return for this security is derived from capital appreciation.
- It’s clear that Gramercy has had a nice run but based upon the trends unfolding I see more potential.
A Few Net Lease REITs To Avoid
- It’s important however that investors shouldn’t paint all Net Lease REITs by the same brush, that is, be careful not to purchase a Net Lease REIT without ample due diligence.
- While I consider the O, NNN, and WPC to be high-quality REITs worthy for most any investor portfolio, the best time to purchase these stocks is when on sale.
- Most other investors are preoccupied with how much money they can make and not at all with how much they may lose.
Here's A Cool Way To Soak Up The Dividends With This Net Lease REIT
- Unlike Windstream who has proposed to convert to a REIT by entering into long-term telephone line leases, EPR Properties has a uniquely-positioned business model that requires knowledge.
- EPR does not contend directly with most Triple Net REITs and as a result, the company has been able to source new investments with less competition.
- The 6.29% dividend yield represents an extremely attractive opportunity for yield-hungry investors in today's low interest rate environment.
- I like EPR’s uniquely-positioned net lease platform and it’s clear that the management team has done an outstanding job recovering from the dividend cut a few years ago.
Nobody Does It Better Than Kimco, I Feel Sad For The Rest
- Beyond the desire to have vetted and trusted management working for me, I’m also interested to own a security that assures uniquely-positioned value.
- In an internet/e-commerce world, I also strongly believe the neighborhood shopping centers will continue to perform well because they are all about essential goods and services.
- All of the cylinders are clicking for Kimco – leasing spreads up 9.7%, small shop occupancy up 200 bps, and steady acquisitions and pruning.
iREIT TV: Avoid the 3 Ts; Nothing But Net-Lease
- Scroll down to watch this YouTube video featuring veteran Net Lease REIT CEO, Chris Volk.
- Superior risk-adjusted returns drove investors to well-tenanted net lease assets during the Great Recession.
- The Triple Net REIT sector is exploding as evidenced by the number of non-listed and publicly-listed entrants including American Realty Capital Properties, Chambers Street Group, and even Annaly Capital.
REIT Conversions Offer Valuable Clues As To The Strength Of This Bedrock Asset Class
- From its beginning, the REIT approach to real estate investment established by Congress contemplated land and the improvements on it.
- Everything that we’ve been seeing over the last 50+ years, including a fiber-optic cable network, fits in the definition that Congress laid out in 1960.
- What has changed is that investors who thought REITs were sleepy have realized that they’ve provided stronger returns than other investments for a long, long time.
- There are more than 200 publicly traded REITs, and the majority of them have come from IPOs of companies that were privately held.
IREIT TV: An Exclusive Interview With ARCP's David Kay
- Scroll down to watch this 10 minute video with David Kay, President (and CEO-elect) of ARCP.
- I’ll be brutally honest; it took guts for me to buy shares in ARCP after an onslaught of significant transactions that began to spook Mr. Market.
- So, the decision I made on June 13th to buy ARCP was a good wager.
- I bought in at $11.95 and the dividend yield was almost 8.4%.
iREIT TV: Exclusive Interview With CEO Of Healthcare Trust Of America
- Check out this exclusive iREIT TV interview with the CEO of Healthcare Trust of America's CEO, Scott Peters.
- Since HTA only owns medical office buildings, the investment proposition offers defensive attributes including a growing physician healthcare provider group seeking to locate at or near hospital systems.
- I was hoping for more than a 1% increase, but at least the dividend is headed in the right direction.
Show Me The Money: The Perils Of REIT ETF Investing
- An unstated, though fundamental, element to purchasing many of the widely held equity index ETFs: Buying the good, the mediocre and the bad equities.
- Peter Lynch, one of the greatest investors of all time, calls this "di-worse-ification.".
- The investment relationship with ETFs is complicated. Investors shouldn’t get lulled into accepting consistent, slight underperformance, because of a desire to avoid large deviations from index returns.
- I can’t provide you with specific details because I owe my dedicated subscribers the content; however, I can tell you that my tactically-weighted portfolio has returned over 21% year-to-date.
Pebblebrook Hotel Trust - A Luxury Brand To Consider
- In other words, the word luxury is synonymous with the Trump brand and if I did not know any better, I would have thought that Donald Trump created it.
- When it comes to luxury-based products, loyal patrons will buy beyond traditional purchases, almost immune to price – kind of the complete opposite of a value investor, eh?
- Although the P/FFO multiple denotes opulence, the durable growth prospects and strong balance sheet provide comfort with the contemplated entry price.
- There are just a handful of REITs that I would consider buying with P/FFO multiples above 18x and Pebblebrook is one of them.
Digital Realty Has A Powerful Moat Of Dividend Repeatability
- Although Mr. Market oftentimes ignores the true long-term profits that are the basis for a wide moat, he eventually becomes more rational in nature and provides a more accurate representation.
- A wide moat business, purchased at the right price, is the ultimate “sleep well at night” investment, and I recognized that opportunity in December 2013.
- "This mutual attraction and our interconnected global portfolio essentially act as a wide moat that is extremely difficult for competitors to replicate." - Bill Stein of Digital Realty.
I'm Happy To See This Healthcare REIT Spreading The Love
- Today, HTA’s board of directors sent me an early Valentine’s Day gift by declaring a cash dividend for the third quarter of $0.145 per share.
- Although I was hoping to see a more substantial boost, the recent dividend news gives me a better feeling that management at HTA is committed to shareholders.
- My latest purchase was on December 3, 2014 and my total return is up 24%.
Will The Lobster Deal Be A Tipping Point For This Net Lease REIT?
- "In the end, Tipping Points are a reaffirmation of the potential for change and the power of intelligent action. - Malcolm Gladwell, The Tipping Point.
- "The name given to that one dramatic moment in an epidemic when everything can change all at once is the Tipping Point." - Gladwell, The Tipping Point.
- I believe the Red Lobster deal is a "tipping point" for ARCP and with over $2 trillion of opportunities in the highly fragmented Net Lease sector.
The Day I Was Surrounded By Market Timers
- As soon as the first stock chart went on the screen I knew that I was not in Kansas anymore.
- To put it bluntly, I was witnessing a form of gambling in which there was no valuation analysis whatsoever – just plain and simple speculation.
- Many ordinary investors all too often act on inflection sentiments when they buy and sell stocks, always looking for instant gratification.
Be Prepared For Mid-Year REIT Results, Part 3
- I currently own 19 REIT securities and in this third edition, I will provide the final forecast that includes 5 of the REITs that I own.
- Maybe Gramercy (GPT) won’t be Babe Ruth (714 HR’s) in 2014 but I’ll settle for Sammy Sosa (609 HR’s).
- It takes only a few large losses to decimate overall investment performance, even if many other investments prove successful.
Can Red Lobster Claw Back Its Once Loyal Customers?
- Over the century brands have become less about trust and more about certainty, instead becoming advertising catchphrases designed to appeal to customers.
- People often seek out the closest Starbucks location in a cult-like ritual where the brands trademark is only recognizable by a text-less logo of the mythological Norse Queen.
- It’s clear that there are lessons learned from the Starbucks transformation and hopefully Golden Gate and Red Lobster can learn from the coffee king.
- Red Lobster has an uphill battle and the key to predicting the success of the fading brand is to claw back loyal customers.