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Another Day In REIT Paradise: TGIF!

Jan. 29, 2021 9:57 AM ETBX, D, DRUA, FCPT, GOOD, GOODM, INVH, IRM, MAC, SKT, WY1 Comment
Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.


  • Invitation Homes (INVH) declared a 13.3% increase to its quarterly dividend.
  • Four Corners Property Trust (FCPT) paid $3.5 million for a Goodyear Tire property in a strong retail corridor in Ohio.
  • Don’t forget to take careful note of the following data, which shows Macerich (MAC), Iron Mountain (IRM) and Tanger (SKT) moving back down after a week-long short squeeze campaign.
  • Subscribe to iREIT on Alpha and "ask Brad anything".

Quote for Today:

“Too many people spend money they haven't earned, to buy things they don't want, to impress people that they don't like.” ― Will Rogers


Does anyone else feel like they’re not living in reality anymore? That they’re actually reading a novel about someone else’s life?

There’s so much going on in the markets right now that I’m not even sure where to start this morning. But let me try anyway by borrowing from a Yahoo Finance article opening that proves I’m not alone in regarding the larger narrative as being almost unreal:

“New York markets had just fired up and the investing world was tuning in for Thursday’s episode of the continuing drama: Legions of Robinhood Markets investors versus hedge-fund Goliaths.

“But within minutes, a shock wave invisible to the outside world rattled the mechanics of Wall Street – sending Robinhood rushing for more than $1 billion of additional cash. The stock market’s central clearing hub had demanded large sums of collateral from brokerages including Robinhood that for weeks had facilitated spectacular jumps in shares such as GameStop Corp. [GME].”

So what did Robinhood – the purported little guy’s hero – do? It shut down certain types of trading altogether. After its anti-big guy base “freaked out” about that decision, the platform tried defending the decision by essentially saying it has to follow the rules.

Which, on the one hand, is true.

On the other hand, perhaps Robinhood should change its name to something along the lines of Establishment or HedgeFundsRUs. After all, it was really only hedge funds that came out ahead in the self-described outlaw’s decision.

As for Robinhood itself? It may have won something too. Or at least not lost enough. Though that’s not even close to being clear yet considering how it’s now being sued by multiple parties. New York Attorney General Letitia James even says she’ll be investigating the matter.

The whole debacle was enough to bring Republicans and Democrats together for a split second. Congresswoman Alexandria Ocasio-Cortez (D) lashed out at the platform, calling its restrictions “unacceptable” on Twitter To which her conservative colleague Ted Cruz tweeted back, “Fully agree.”

A beautiful moment of harmony, right?

The moment admittedly died with her response of: “I am happy to work with Republicans on this issue where there’s common ground, but you almost had me murdered 3 weeks ago so you can sit this one out. Happy to work w/ almost any other GOP that aren’t trying to get me killed. In the meantime if you want to help, you can resign.”

Can this drama get any more dramatic?

At this point, I’m not willing to bet against the possibility.

I’m also not willing to bet against the consistent nature of REITs. Because, in the midst of all this, the usually calm, cool, and collected world of commercial real estate continues to turn its sector- and company-specific pages as if there’s no other story to tell.

And perhaps there shouldn’t be.

The World According to Commercial Real Estate

You can find some of this news on your favorite stock site, of course.

For instance, it’s not too hard to find the good news that Invitation Homes (INVH)declared a 13.3% increase to its quarterly dividend, bringing it from $0.15 to $0.17 – a very welcome vote of confidence.

The same goes for timber REIT Weyerhaeuser’s (WY) surprise penny-per-share earnings miss – its first expectations “fall” in three quarters. (If you’ve got to fail, I’d say that’s the way to go considering its impressive year-over-year comparisons.)

But where are you going to get it all in one place in one easily accessible, insider-information-including format? That’s why I rely on The Daily REITBeat every market morning – the full collection of which iREIT on Alpha members always have access to, including how:

  • Gladstone Commercial (GOOD) collected about 98% of its January cash base rent, and portfolio occupancy is over 95%. It also reported that it’s issued 1,633,000 shares of common stock for net proceeds of $29.5 million since July 1, and 214,000 shares of Series E perpetual preferred stock for $5.2 million.
  • Preferred Apartment Communities (APTS) collected 99% of its multifamily rent due in November and December 2020 and 97% from its grocery-anchored retailers. The office category, meanwhile, came in at 100% for November and 99% for December.
  • Four Corners Property Trust (FCPT) paid $3.5 million for a Goodyear Tire property in a strong retail corridor in Ohio. The property is corporate-operated under a triple-net lease with about ten years left to the contract.

Don’t forget to take careful note of the following data, which shows Macerich (MAC), Iron Mountain (IRM) and Tanger (SKT) moving back down after a week-long short squeeze campaign.

(Source: Daily REITBeat)

That’s not to say I don’t still see potential in them… only that we can’t put our hopes and dreams into silly market speculation. Stay short-term aware and long-term minded.

Otherwise, you’re bound to be disappointed.

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Members can now get full access to this sophisticated screening tool whenever they want… as well as deep-dive details about equity REITs, mREITs, preferreds, BDCs, MLPs, ETFs, and, more.

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I’d wager that’s something you need after everything 2020 threw your way. So sign up today to see what iREIT can do for you!

Analyst's Disclosure: I am/we are long fcpt, irm, mac, SKT.

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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