Wrong. Wrong. Wrong.
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.
- I know that a few readers got upset the last time I wrote about the jobs numbers.
- As I recall, the comment said something like, “There are so many factors involved in predicting such things. It’s unfair to expect them to be right"
- Yet, with all due respect, that’s what these people are paid to do. They’re supposed to be highly trained and studied in analyzing all of those factors.
- So when they’re hundreds of thousands off… I’m not going to apologize for calling them out for a job poorly done. Which is precisely what happened again on Friday with November’s numbers.
Quote of the Day:
“The naked intellect is an extraordinarily inaccurate instrument.” – Madeline L’Engle
I know that a few readers got upset the last time I wrote about the jobs numbers. I even had one chastise me about criticizing the economists who had failed so intensely in predicting jobs added.
As I recall, the comment said something like, “There are so many factors involved in predicting such things. It’s unfair to expect them to be right.”
Yet, with all due respect, that’s what these people are paid to do. They’re supposed to be highly trained and studied in analyzing all of those factors.
So when they’re hundreds of thousands off… I’m not going to apologize for calling them out for a job poorly done. Which is precisely what happened again on Friday with November’s numbers.
Economists expected 545,000 new positions added to the U.S. economy. Instead, there were only 210,000. Not even half of what should have happened according to their calculations.
Not even close. That’s a failing grade.
The more positive numbers reported on Friday don’t change a thing in that regard. Like how labor force participation rose a bit to 61.8%. (Though it remains 1.5% lower than February 2020 levels.) And how the unemployment rate fall to 4.2% instead of the 4.5% expected.
But a fail is still a fail for those economists. For the economy too, especially certain sectors considering the following data from Yahoo Finance:
- Leisure and hospitality “added just 23,000 payrolls after October’s increase of 170,000”
- “Retail trade shed payrolls on net… by more than 20,000” after gaining almost 40,000 in both October and September.
- Motor vehicle and parts employers erased “more than 10,000 positions after adding 19,300 in October.”
Clearly then, the economy still has room to improve. And so do those getting paid to study it.
The World According to REITs
I think it’s worthwhile to point out these economists’ failings because it’s relevant – both to understanding which sources to trust and how to assess present data and future possibilities. Plus, it can remind us of how unaware we can be about what’s really going on.
We’re prone to being detrimentally distracted by some things and fixated on others. We come to conclusions based on what we see, but so often what we see is exceptionally limited.
That’s a handicap I can’t see us ever completely overcoming, but it is something to always work at improving… constantly being open to seeking other perspectives.
That way, for instance, we’re better prepared to handle volatility when any cryptocurrency investments of ours take a deep dive like this one:
That’s why I keep sharing three Daily REITBeat real estate investment trust updates for you each day that I can…
- Four Corners Property Trust (FCPT) acquired a dual-tenant New York property for $3 million leased to Aspen Dental and WellNow Urgent Care. It also bought a RadNet Imaging property in Florida for $2.2 million at a 7% going-in cash cap rate.
- Franklin Street Properties (FSP) declared a special cash dividend from taxable gains from its $600 million of 2021 aggregate assets. The $0.32 per share will be payable on January 12 to stockholders of record by December 31.
- SL Green Realty (SLG) reported several transactions, including selling a 25% interest in One Madison Avenue. The buyer promised to put in no less than $259.3 million, leaving SLG a 25.5% interest. It also sold its ownership interest in 110 East 42nd Street for $117.075 million and its leasehold interest in 1080 Amsterdam Avenue for $42.5 million.
And here’s another past perspective to consider before we end:
(Source: The DailyREITBeat)
Inflation Is a Monster REITs Can Help You Beat
One of my readers recently wanted to know if I was worried about inflation – an intensely legitimate question.
The simple answer is that I definitely do have it on my mind. Fortunately though, I also have REITs.
As I wrote months ago, real estate investment trusts offer “natural protection against inflation” since rental contracts tend to include such considerations. In fact:
“… many leases are tied to inflation. This supports REIT dividend growth and provides a reliable stream of income regardless, helping to support the following fact…
“That, in all but two of the last 20 years, REIT dividend increases have outpaced inflation as measured by the Consumer Price Index.”
Not bad, right?
Not bad at all! Just as long as you know which ones are worth your money at any given time – both from a valuation and quality perspective.
That’s why iREIT on Alpha gives members ahead-of-the-curve advice on what’s what in REIT-dom through:
- Insightful articles
- Profitable portfolios
- Proprietary tools…
This is your chance to try us out – without any strings attached. Activate your two-week free trial period now and see if iREIT is right for you.
I can’t wait to show you everything you’ll have at your disposal when you do!
Analyst's Disclosure: I/we have a beneficial long position in the shares of FCPT, SLG either through stock ownership, options, or other derivatives.
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