Highfields Capital Is Wrong Because This Digital Cloud REIT Ain't Going Nowhere But Up [View article]
Satre - Thanks for commenting. Sir John Templeton said it best:
"To buy when others are despondently selling and sell when others are greedily buying requires the greatest fortitude and pays the greatest ultimate rewards.”
Picking An All-Star REIT Team To Defend Against Interest Rate Risk [View article]
getshorty - I think ROIC will have a rating soon...It has to get size and a few quarters more of results.... I just finished an article on STAG and they are in the same boat (I included a quote from STAGs CEO on the prospects of obtaining an investment grade rating)....
Also, this article I wrote on DLR got some great comments...check it out when you have time: http://seekingalpha.co...
Picking An All-Star REIT Team To Defend Against Interest Rate Risk [View article]
smurf - I was waiting to hear (and see) a spike when the MOB portfolio is sold...I haven't seen that announcement yet....My gut tells me that WRE will eventually sell of all of the pieces ... WRE's total return still remains flat....I will try to get a detailed article out in a few days....All the best, Brad
Highfields Capital Is Wrong Because This Digital Cloud REIT Ain't Going Nowhere But Up [View article]
Qniform - Terrific commentary and I (and I'm sure all others reading) appreciate your taking the time to post Pamela's response. I have found DLR's Investor Relations (IR) team to be very high quality and I ALWAYS get a reply back. I have attended several trade show conferences and I have also found DLR to be a first class organization. It's clear that Highfields has their own incentives but it's also clear that DLR's incentives are well-aligned with its shareholders....All the best, Brad
Picking An All-Star REIT Team To Defend Against Interest Rate Risk [View article]
Dane - I don't disagree but if were to stray outside of the "high credit quality" bucket I would invest in SRC. GOOD's facilities are larger (boxes) and many are in secondary markets. If GOOD has just a few tenant defaults, the buildings will be harder to lease and because GOOD finances many of the facilities with non-recourse debt, there is more risk of losing principal (equity). Alternatively, SRC invests in sites that have demonstrated above average store-level performance. Simply said, SRC's facilities will be easier to lease (and SRC also has an internalized management team and GOOD doesn't).
Dane, the best indicator is the fact that O, NNN, and WPC increased dividends through the recession and these REITs have NEVER cut. IMO, that is the "moral of the story" and why I could not recommend GOOD. Thanks again, Brad
Picking An All-Star REIT Team To Defend Against Interest Rate Risk [View article]
Larry - As mentioned above, I like GOOD from a valuation perspective. My two biggest hangups are credit quality and management. I think these are critical for a SWAN (sleep well at night) investment strategy...All the best, Brad
Picking An All-Star REIT Team To Defend Against Interest Rate Risk [View article]
Dane - Agreed. Thank you for all of your exceptional articles. I have benefited from your insight and I'm glad we can collaborate on sound REIT ideas. All the best, Brad
Picking An All-Star REIT Team To Defend Against Interest Rate Risk [View article]
mgordon10 - I see nothing wrong with over-weighting Triple Net REITs - especially since so many Triple Net REITs are extending their respective categories into other non-retail industries. For example, today O has over 40 industries and ARCP has 21 industries....So you are getting ownership in just about every possible category...
...and I'm sure your portfolio has been amazing over the last 6 months as the Triple Net sector has returned around 30% YTD....but, as you know, it will not last....
That's why I think investors should diversify into other sectors that promise strong growth (and not just income)...Finally, Chambers Street (CSG) is listing May 21....may be worth looking into.....Good luck, Brad
Picking An All-Star REIT Team To Defend Against Interest Rate Risk [View article]
Lee - I'm working on an asset allocation article this weekend and it should have most of your questions in the article....Hang tight. Thanks for reading, Brad
Picking An All-Star REIT Team To Defend Against Interest Rate Risk [View article]
Robert - Thanks. HCN deserves a position. From a valuation perspective, GOOD looks sound; however, I am more concerned with the exterior managed model and the choice of lower quality assets....The biggest risk will be tenant defaults (more likely for GOOD since moat tenants aren't investment grade)....I would prefer to own ARCP (also externally managed) since the portfolio has a high concentration of investment grade rated tenants... Good luck, Brad
Picking An All-Star REIT Team To Defend Against Interest Rate Risk [View article]
jimstravels - good point...that's why I have around 12 REITs in my SWAN (sleep well at night) portfolio. As you know, O has been strategically diversifying into other categories...I have no problem over-weighting retail since I think there is remaining cap rate compression in retail and that should boost my total returns. All the best. Brad
Highfields Capital Is Wrong Because This Digital Cloud REIT Ain't Going Nowhere But Up [View article]
"To buy when others are despondently selling and sell when others are greedily buying requires the greatest fortitude and pays the greatest ultimate rewards.”
Picking An All-Star REIT Team To Defend Against Interest Rate Risk [View article]
Picking An All-Star REIT Team To Defend Against Interest Rate Risk [View article]
Also, this article I wrote on DLR got some great comments...check it out when you have time: http://seekingalpha.co...
Good luck, Brad
Picking An All-Star REIT Team To Defend Against Interest Rate Risk [View article]
Picking An All-Star REIT Team To Defend Against Interest Rate Risk [View article]
Highfields Capital Is Wrong Because This Digital Cloud REIT Ain't Going Nowhere But Up [View article]
Picking An All-Star REIT Team To Defend Against Interest Rate Risk [View article]
Dane, the best indicator is the fact that O, NNN, and WPC increased dividends through the recession and these REITs have NEVER cut. IMO, that is the "moral of the story" and why I could not recommend GOOD. Thanks again, Brad
Picking An All-Star REIT Team To Defend Against Interest Rate Risk [View article]
Picking An All-Star REIT Team To Defend Against Interest Rate Risk [View article]
Picking An All-Star REIT Team To Defend Against Interest Rate Risk [View article]
Picking An All-Star REIT Team To Defend Against Interest Rate Risk [View article]
...and I'm sure your portfolio has been amazing over the last 6 months as the Triple Net sector has returned around 30% YTD....but, as you know, it will not last....
That's why I think investors should diversify into other sectors that promise strong growth (and not just income)...Finally, Chambers Street (CSG) is listing May 21....may be worth looking into.....Good luck, Brad
Picking An All-Star REIT Team To Defend Against Interest Rate Risk [View article]
Picking An All-Star REIT Team To Defend Against Interest Rate Risk [View article]
Picking An All-Star REIT Team To Defend Against Interest Rate Risk [View article]
Picking An All-Star REIT Team To Defend Against Interest Rate Risk [View article]