My Oh My, A New SAFE Strong Buy
Summary
- Every Friday our team at iREIT conducts an hour-long Zoom call to discuss our iREIT Ratings Tracker.
- Over the past 12 months we have interviewed well over 100 CEOs and we provide our members with the full video and a copy of the transcript.
- Yesterday after interviewing NTST CEO, Mark Manheimer, we decided that we would upgrade the net lease REIT to a Safe Strong Buy.
- If you subscribe now, I will ship you my REIT book, so you have it just in time for Santa Claus.
Although many of you know me as the top REIT analyst on Seeking Alpha (with over 98,000 followers), some of you may not know that our marketplace service has a robust suite of research tools.
Every Friday our team at iREIT conducts an hour-long Zoom call to discuss our iREIT Ratings Tracker.
For example, yesterday we surveyed the deepest bargain buys – what we refer to as Strong Buys – to pinpoint the safest names and highlight some of the higher risk alternatives.
During this call, we decided that it would be prudent to define the term Strong Buy as either
- a safe strong buy
- a strong buy, or
- a speculative strong buy.
In order to determine whether the company is “safe” or “speculative” we decided to use our quality scoring model (called the iQ). And in order to be a “safe strong buy” the company must have a wide margin of safety and an iQ (quality) score of 75 or higher.
One of our members' favorite tools (that members love) at iREIT on Alpha is our “Ground Up Podcast” in which I regularly conduct interviews with C-suite executives. This week I interviewed:
- The CEO at STAG Industrial (STAG)
- The CEO and CFO at Innovative Industrial (IIPR)
- The CEO at NetStreit (NTST)
Over the past 12 months we have interviewed well over 100 CEOs and we provide our members with the full video and a copy of the transcript. We put a lot of work (and money) into these videos, but based on our customer feedback, the exclusive interviews are highly valuable (and extremely entertaining).
Source: iREIT on Alpha
Over the holidays we have lined up over a dozen more interviews including CEOs at:
Yesterday after interviewing NTST CEO, Mark Manheimer, we decided that we would upgrade the net lease REIT to a Safe Strong Buy. The interview with Manheimer was extremely helpful as he explained to me,“…we're actually pretty bullish on Walgreens (WBA) and CVS (CVS)…”.
As iREIT on Alpha members know, we avoided the drama associated with EPR Properties (EPR) and Manheimer and I speak the same language when it comes to theater real estate.
“… the reason why we don't have any movie theater exposure goes back to the real estate. In the event that there's a lot of headwinds associated with that industry, even pre-pandemic.
I think that certainly was accelerated with the pandemic, but in the event that it doesn't work as an AMC or a Cinemark, or a Regal, you're left with likely a dollar movie theater where they're not going to be able to pay you nearly as much rent, or you're going to have to scrape and rebuild it.
We just don't want to be in the business of scraping and rebuilding large properties. That's just not how we want to make money.”
Well said!
Anyway, NTST checks all of the boxes and based on our fundamental analysis, we consider the company not only a Strong Buy, but a “SAFE” Strong Buy.
Source: iREIT on Alpha
The REIT Mastermind Series
As many of you know, I recently published a book called The Intelligent REIT Investor Guide, and as I explain in the book,
“In many ways, my love of REITs can be correlated to my love for my five kids. That’s why I dedicate this book to Lauren, Lexy, Nicholas, Riley, and A.J. They’re always worth investing in.”
Beyond my family, my love for REITs is educating investors, and in 2022 I plan to once again guest lecture at NYU. I enjoyed the first class I taught in 2021 and I’m currently finetuning the curriculum such that I can provide a REIT mastermind series in the future.
In fact, we have an entire menu of iREIT products that we will be launching in 2022, including my very own REIT ETF.
We’re extremely excited for the growth at iREIT on Alpha, as 55 new members have signed up over the last 30 days.
We’re also excited that we recently added a terrific new analyst, Wolf Report, to the team and of course this means that we’re able to expand operations in Europe (Wolf is based in Sweden).
Of course, the reason we’re successful at iREIT is because we understand our customers. Over the last few months we have enhanced the platform and we now have record retention. This week we received 20 new testimonials – all 5-stars, and I’ll share a few here:
Source: iREIT on Alpha
As you can see below, our marketplace service is simply unmatched:
Source: iREIT on Alpha
And to be clear, we are not focused on high-yield, because we recognize that our members are interested in principal preservation.
We have seen too many examples of retirees going broke because they put all of their hard-earned savings on REITs like CBL Properties (CBL) or EPR Properties (EPR).
Many of our articles are focused on REITs to avoid, because we know that it only takes one torpedo to sink a ship.
Just take a look at our core REIT portfolio – known as the Durable Income Portfolio. It has returned an average of 25% per year since 2013:
Our higher risk REIT portfolio – the Small Cap Portfolio – has smashed every Index on the planet, delivering annual returns of over 40% since January 2016:
We recently sold Power REIT (PW), a nanocap in the Small Cap Portfolio in which we had over 15% exposure. Since our initial investment, this REIT generated returns in excess of 168%.
Hopefully I’ve given you enough reasons to take the 2-week FREE test drive….
But I’m providing you with one more reason…
My brand new book …
If you subscribe now, I will ship you my REIT book, so you have it just in time for Santa Claus.
What a great stocking stuffer…
Feel free to direct message me if you have any questions whatsoever. As I said above, I love helping investors and I would love to see you become part of the iREIT on Alpha family.
Happy Holidays!
Brad Thomas
CEO of Wide Moat Research and Senior Analyst at iREIT
Analyst's Disclosure: I/we have a beneficial long position in the shares of abr, iipr, o, sach, stag, wba either through stock ownership, options, or other derivatives.
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.