Another Day In REIT Paradise: Show Me The (Stimulus) Money
Dividend Growth Investing, REITs, Value
Seeking Alpha Analyst Since 2009
Brad Thomas is the CEO of Wide Moat Research ("WMR"), a subscription-based publisher of financial information, serving over 100,000 investors around the world. WMR has a team of experienced multi-disciplined analysts covering all dividend categories, including REITs, MLPs, BDCs, and traditional C-Corps.
The WMR brands include: (1) iREIT on Alpha (Seeking Alpha), and (2) The Dividend Kings (Seeking Alpha), and (3) Wide Moat Research. He is also the editor of The Forbes Real Estate Investor.
Thomas has also been featured in Barron's, Forbes Magazine, Kiplinger’s, US News & World Report, Money, NPR, Institutional Investor, GlobeStreet, CNN, Newsmax, and Fox.
He is the #1 contributing analyst on Seeking Alpha in 2014, 2015, 2016, 2017, 2018, 2019, 2020, 2021, and 2022 (based on page views) and has over 108,000 followers (on Seeking Alpha). Thomas is also the author of The Intelligent REIT Investor Guide (Wiley) and is writing a new book, REITs For Dummies.Thomas received a Bachelor of Science degree in Business/Economics from Presbyterian College and he is married with 5 wonderful kids. He has over 30 years of real estate investing experience and is one of the most prolific writers on Seeking Alpha. To learn more about Brad visit HERE.
- A stimulus package made it through the senate yesterday through President Trump is threating to veto it due to "wasteful spending" and inadequate direct payments.
- Yet the markets once again don’t seem to care one way or the other about whether the bill passes.
- Maybe they’ve finally come to the realization that there’s a bigger picture to focus on rather than the minute-to-minute dramas they’ve been so swayed by the rest of the month?
- On behalf of the entire Wide Moat Research team, have a safe and happy holiday, and thank you for the opportunity to be of service.
Quote for Today:
“Money is a great servant but a bad master.” – Francis Bacon
What did I say yesterday about the stimulus bill having a LOT of pork in it? And what did I say last week about believing it will pass after it passed?
Well, it made it through the Senate yesterday. But President Trump is threatening to veto it due to “the ridiculously low $600 [per person] to $2,000, or $4,000 for a couple,” and the “wasteful spending” in the larger “omnibus package” such as billions to other countries.
- $700 million for Sudan
- $135 million for Burma
- $1.3 billion for Egypt
- $506 million for Central America
- $10 million to Pakistan
- $500 million for Israel.
Yet the markets once again don’t seem to care one way or the other about whether the bill passes. Maybe they’ve finally come to the realization that there’s a bigger picture to focus on rather than the minute-to-minute dramas they’ve been so swayed by the rest of the month?
In a completely different case of sticker shock, a tweet from Entertainment Tonight’s Hunter Reis went viral the other day concerning living space in L.A. versus the little town of Fall River, Massachusetts.
He showed two listings, with the first being an unassuming two-bedroom, one-bathroom, 885-square-foot house in the enormous California city. The second over on the other coast has a stone exterior, six bedrooms, seven bathrooms, and 7,860 square feet of living space.
Both are listed for $1.09 million.
“Apples and oranges,” many people responded, and rightfully so. L.A. has job opportunities that other places simply haven’t been able to boast before.
At the same time, there was an equally compelling response from others who showed similarly priced listings elsewhere that clearly top the L.A. example in exterior and interior offerings.
I’ve been acknowledging this in articles and featured news stories for months now. It’s impossible to deny that California faces an advertising problem like it’s never faced before. And while I’m confident it will eventually overcome this issue, rest assured I’m monitoring the situation closely…
Probably more so than when/if a stimulus bill will ever pass.
Another Day in REIT Paradise…
In iREIT’s partnership with the Daily REITBeat, we consistently provide our members with their morning news at 9:00 am. And we happily offer samples of that here as well.
Here’s a snippet of what we’ve got to look at today:
- Corporate Office Properties Trust (OFC) completed the second and final close of its new joint venture with Blackstone-affiliated funds. The deal was initially announced on November 2, allowing The Blackstone Funds to acquire a 90% interest in six data-center shell properties worth a combined $203 million. That majority stake comes from COPT’s 40% interest – which it received about $84 million for – and another investor that held 50%.
- Power REIT (PW) released more information about its latest rights offering, including a subscription price of $26.50 per share. The proceeds will go toward buying new acquisitions and funding its subsidiaries.
- Simon Property Group (SPG) signed agreements with giant Spanish fashion chain Mango to lease space at its Roosevelt Field (Garden City, New York), Menlo Park (Edison, New Jersey), and Dadeland (Miami, Florida) locations next quarter.
Last but not least, here are yesterday’s biggest winners and losers. Clearly, there were some doozies in the latter category…
(Source: Daily REITBeat)
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On behalf of the entire Wide Moat Research team, have a safe and happy holiday, and thank you for the opportunity to be of service.
It is truly our pleasure to serve you.
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