Inflation Busters: I Ain't Afraid Of These REITs

Jan. 26, 2022 7:00 AM ET, , , , , , , , , , , , , , 27 Comments

Summary

  • Real estate has historically benefited from inflationary environments.
  • REIT dividend payout ratios as a percentage of FFO/share are at their lowest levels since, and estimated FFO/share growth rates are higher than they’ve been since 2011-2012.
  • The last time we saw this, REITs raised their dividends by an average 11.5%.
  • I do much more than just articles at iREIT on Alpha: Members get access to model portfolios, regular updates, a chat room, and more. Learn More »
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In a recent Seeking Alpha blog, I admitted I’ve never experienced this kind of inflation before. Not as an investor.

Consumer prices jumped by 7% last year, the result of:

  • Billions of dollars of pandemic-related fiscal stimulus
  • Expanded government spending

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This article was written by

119.52K Followers

Brad Thomas has over 30 years of real estate investing experience and has acquired, developed, or brokered over $1B in commercial real estate transactions. He has been featured in Barron's, Bloomberg, Fox Business, and many other media outlets. He's the author of four books, including the latest, REITs For Dummies.

Brad, along with HOYA Capital, lead the investing group iREIT®+HOYA Capital. The service covers REITs, BDCs, MLPs, Preferreds, and other income-oriented alternatives. The team of analysts has a combined 100+ years of experience and includes a former hedge fund manager, due diligence officer, portfolio manager, PhD, military veteran, and advisor to a former U.S. President.

Note: Brad is also related to Nicholas Thomas who contributes to Seeking Alpha.

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Analyst’s Disclosure:I/we have a beneficial long position in the shares of ADC, GLPI, KIM, O, SKT, SRC, AND VICI either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Author’s Note: Brad Thomas is a Wall Street writer, which means he's not always right with his predictions or recommendations. Since that also applies to his grammar, please excuse any typos you may find. Also, this article is free: written and distributed only to assist in research while providing a forum for second-level thinking.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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