Another Day In REIT Paradise: Money Doesn’t Grow On Trees

Summary

• We had two excellent interviews yesterday at iREIT on Alpha, one with Omega Healthcare Investors (OHI).
• I also interviewed Arbor Realty (ABR) CEO Ivan Kaufman.
• Next up, I’m interviewing C-suite executives at Hannon Armstrong (HASI) and Essex Properties (ESS). That’s today, with more scheduled as the week winds down.

Quote for Today:

“Money doesn’t grow on trees.” – Unknown

(Source)

The mainstream financial news seems filled with tech stock news this morning:

• Reddit, it turns out, didn’t just raise “more than $250 million” in its private stock sale earlier this month. It raised $368 million.
• Tesla (TSLA) is just as loved – and as hated – as ever.
• Bitcoin got some serious love from Jack Dorsey’s Square (SQ)… to the tune of $170 million.

There were no real estate-labeled headlines in sight, as if tech was and is taking over the world.

Mainly because that’s true.

Consider the Kohl’s (KSS) activist investor news that broke earlier this week, where a group of significantly sized shareholders decided to channel its inner Carl Icahn. They have a list of demands, including bolstering the company’s online capabilities.

If that push is successful though, it could actually end up making brick-and-mortar retail a much more attractive concept – odd though that may sound.

I’m also going to point to Mighty Building’s recent move, a business you probably never even heard of before. While this isn’t commercial real estate-specific, it does show the ever-increasing power of technology…

And how real estate can adapt with it.

MillionAcres writes:

“Construction technology startup Mighty Buildings just raised $40 million from investors in a Series B round of funding…

“Mighty Buildings says that it can handle the entire homebuilding process from permitting to finishes. The company’s Chief Operating Officer, Alex Dubo, said, ‘We aim to unlock productivity in construction by introducing new materials, 3D printing, and robotics to the industry… Basically what we are making a reality to be able to build in a more sustainable, efficient, and affordable way.”

That capability is still obviously in its infancy, with the company full-on acknowledging that it doesn’t print its material onsite. All the same, who knows?

This kind of construction could eventually find its way into commercial real estate as well.

So, no, as our quote for the day says, money really doesn’t grow on trees. But that doesn’t mean it’s not growing all around us all the same.

The World According to Commercial Real Estate

We had two excellent interviews yesterday at iREIT on Alpha, one with Omega Healthcare Investors (OHI). CEO Taylor Pickett told me that, “If the company gets more clarity as it rolls into 2021, at some point it will be increasing the dividends.”

Interpretation: It’s very likely that OHI will continue to build an impressive track record for dividend growth, which is already over the decade-and-a-half consecutive mark.

I also interviewed Arbor Realty (ABR) CEO Ivan Kaufman, where he explained that the company has “the best-performing rate five years in a row with a 22% average return.” Sure enough, ABR has been one of the best REITs to own during the pandemic – not to mention another dividend grower worth paying attention to.

Next up, I’m interviewing C-suite executives at Hannon Armstrong (HASI) and Essex Properties (ESS). That’s today, with more scheduled as the week winds down.

Keep in mind that all our members at iREIT on Alpha can view this exclusive content in video and transcript formats at their leisure. Though, naturally, I’d suggest sooner than later.

This information is time-specific, to say the least. And I don’t want to see you missing out in the meantime.

As for our Daily REITBeat summary, here’s more data to digest:

• Kite Realty Group (KRG) has authorized a new $150 million share repurchase program that will run through February 28, 2022 unless its board of trustees decides otherwise in the interim.
• Iron Mountain (IRM) will be forming a joint venture with Web Werks, one of India’s top colocation data center providers. The agreement includes expectations for IRM to invest $150 million over the next two years to support Web Werks’ existing and planned infrastructure in the rapidly growing pan-India region.
• Equinix (EQIX), in collaboration with Vodafone (VOD), plans to build a new subsea hub that strengthens connectivity across Europe. The partnership involves Vodafone landing the 2Africa cable system at Genoa and using Equinix's GN1 facility as a strategic interconnection point for the subsea cable system.

See what I mean about real estate adapting?

(Source: The Daily REITBeat)

The #1 Site for Reliable REIT Income

A membership with iREIT on Alpha means you get instant access to insightful articles, profitable portfolios, and our iQ scoring model, where the Q stands for Quality.

This extremely powerful system lets data determine the best REITs to own based on their most basic and essential fundamentals.

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.

Join this in-the-know community with a two-week FREE TRIAL that includes my new book as an added incentive to stick around.

I truly think becoming an iREIT on Alpha member will be worth your while considering everything you receive. It’s a long list that involves access to the dozens of C-suite interviews I’m constantly scheduling on my Ground Up podcast, such as those mentioned above.

They’re designed to give you the kind of insider information that puts people ahead of the game. Just think about all the possibilities to profit from when you’re not in the middle of the rat race anymore…

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.