Another Day In REIT Paradise: The Intelligent REIT Investor
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.Summary
- Essex Property Trust (ESS) announced Q4 core FFO of $3.02 per share and issued 2021 guidance of $11.86-$12.46.
- Corporate Office Properties (OFC) reported Q4 AFFO of $0.56 per share, with expectations for $0.54-$0.56 in the first quarter and full-year guidance of $2.16-$2.22.
- Members have 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.
Quote for Today:
“If you're saving, you're succeeding.” – Steve Burkholder
(Source)
The REIT earnings headlines are mixed this morning, with the following three listed one right after another on Yahoo Finance:
- “Omega Healthcare Investors (OHI) Q4 FFO Match Estimates”
- “Monmouth Real Estate (MNR) Misses Q1 FFO and Revenue Estimates”
- “Cedar Realty Trust (CDR) Q4 FFO and Revenues Surpass Estimates.”
(Emphasis added.)
For its part, Cedar owns 54 grocery-anchored shopping centers in high-density cities from D.C. straight up to Boston. On paper in the Covid-era, two out of three of those designations look downright awful.
Who wants to be in retail or big urban areas these days?
Truth be told, Cedar’s funds from operations did fall for the quarter year-over-year. It made $0.71 per share in Q4-20 as opposed to $0.73 in Q4-19. But that was still an intense amount better than the $0.59 Zacks was projecting.
I have to be clear that I am not recommending Cedar as a Buy at this point. Yet, the way I see it, these results do prove my repeatedly preached point that – pandemic or no pandemic – people still have to eat.
It also very much seems to indicate that select REITs remain worthwhile investment targets. And as for those reporting less impressive results, well, you have to take them on a case-by-case analysis.
Some of them, it’s true, might not recover for several quarters – maybe even several years. Others might not recover at all.
To state the obvious, the shutdowns and social distancing did a number on commercial real estate. There’s no other way of looking at it. Moreover, the damage was startlingly sudden and never seen before.
But as we’re seeing as February continues to roll out, there are success stories out there nonetheless. And I expect more ultimate winners than losers to emerge this year.
You just have to know where, when, and how to look.
The World According to Commercial Real Estate
With that goal in mind, I’m providing members at iREIT on Alpha with quite a few updates today, including news on:
I’m also lining up CEO interviews to provide members with the very best information so they can make actionable investment decisions. I already interviewed Physician Realty’s (DOC) chief executive this week, which elicited very impressed responses such as:
“I've made a few really good investments over the years. This is one of the best. Good interview!”
and
“Excellent. I thank you both... looking to me like a breakout around the corner.”
Members also get daily news powered by the Daily REITBeat, such as:
- Essex Property Trust (ESS) announced Q4 core FFO of $3.02 per share and issued 2021 guidance of $11.86-$12.46. Same-property gross quarterly revenue fell 8% year-over-year, and net operating income (NOI) dropped an even more significant 12.7%. With that said, Essex repurchased 211,681 shares of common stock, totaling $46.3 million at an average price of $218.84 per share. And as of February 1, it had about $1.2 billion in liquidity through undrawn capacity on its unsecured credit facilities, cash, and marketable securities.
- Corporate Office Properties (OFC) reported Q4 AFFO of $0.56 per share, with expectations for $0.54-$0.56 in the first quarter and full-year guidance of $2.16-$2.22. Same-property cash NOI rose 1.6% last year, and its core portfolio was 94.3% occupied and 95% leased.
- CorEnergy Infrastructure (CORR) purchased Crimson Midstream Holdings, LLC, a regulated crude oil pipeline owner and operator for a considered value at around $350 million. The acquisition includes four critical infrastructure pipeline systems amounting to approximately 1,800 miles across northern, central and southern California.
So there’s that news. And here’s your top 10 summary of winners and losers in the REIT space:
(The Daily REIT Beat)
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Analyst's Disclosure: I am/we are long doc, ess, mnr, mpw, ofc, OHI.
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