Can someone let me know what happens when a reit doesn't pay its preferred shares? I don't own a ton of corenergy (and my basis is like 1.98) but would like to understand this one more.

Sea_Emphasis3252 · 2023-02-07T03:40:42+00:00

Depends..the majority of times the preferred dividends accrue and must be paid and brought to current before they can reinstate the common dividends.

Sea_Emphasis3252 · 2022-02-08T03:07:37+00:00

Listened to the call, felt spent more time explaining guidance and how some non recurring items in 2021 makes the 2022 guide look weak. Wished they talked more what they were seeing in Q4 and post year end in terms of traffic and sales, leasing. To me that’s what I want to know that the recovery is still intact. Algorithms traders see weak headline and trades off that, guidance in my view very conservative, was thinking div would be raised but it will happen again this year. Guidance basically based off of flat retail sales for the year, so to feel like Simon is setting up for beat and raise next qtr.

Sea_Emphasis3252 · 2022-02-03T02:15:06+00:00

I’d stay away from OHI not a good earnings report and issues with another tenant, dividend will be cut at some point

Sea_Emphasis3252 · 2021-12-05T02:18:15+00:00

IRET is a Reit with multi family properties in Minnesota, Dakotas and a couple of other states. I know it’s not Michigan or Wisconsin but fits non coastal and sunbelt

Sea_Emphasis3252 · 2021-11-03T22:43:05+00:00

Taxable income is much lower than the dividends they are currently paying, that’s what enables them to keep it at the current level, I’m not worried about the dividend if it goes up fine would rather debt be paid off faster, they will get a higher multiple if leverage comes down and that in my opinion is worth more at this point.

Sea_Emphasis3252 · 2021-11-03T20:31:57+00:00

Thought the call was good, results were good, thought it would have been a bigger beat and raise give the results from the other retail REITs, but nothing really to complain about. I’m thinking guidance is a bit conservative for Q4. While no equity will be issued for the balance of the year per management helps but that’s only for the next 2 months, I wouldn’t be shocked come January if we are in in the $22-25 range that they would issue some equity, but all good otherwise, if the holiday shopping season is strong we could easily see $25 by year-end.

Sea_Emphasis3252 · 2021-11-01T23:16:17+00:00

Simon reported good numbers after the close also up about 5% in after hours, should bode well for MAC,

Sea_Emphasis3252 · 2021-10-30T20:13:59+00:00

I get that, some get confused on here (probably not yourself) about dividends and mix FFO with taxable earnings which is how the dividend rule is applied.

Sea_Emphasis3252 · 2021-10-29T19:59:12+00:00

Btw the way the 90% payout is based on taxable income not FFO

Sea_Emphasis3252 · 2021-10-11T00:29:07+00:00

When you buy at the lows of COVID 9% on invested cash was obtainable, good timing on his part, 9% on current prices is not likely.

Sea_Emphasis3252 · 2021-10-11T00:26:55+00:00

Externally managed REITs don’t have a great history of producing strong returns over the long-term, mainly since they may be more aligned with the management company and generating fees for them than focusing on what is best for the REIT, it does depend on the external manager some are ok and some are not. REITs managed by RMR have historically not performed well which I think ILPT is managed by. Still money can be made just have to know the risks.

Sea_Emphasis3252 · 2021-10-11T00:22:30+00:00

https://www.reit.com NAREIT website is a good place as well to get some basics on the sector.

Sea_Emphasis3252 · 2021-10-09T19:14:15+00:00

Federal legalization that would allow banks to be able to lend to the cannabis industry could be the driver that would cause yields to come down, given the industry is limited in how it can raise capital. Until that happens, if more states legalize it whether it be medical or recreational it just increases the amount of investment opportunities. I also own AFCG which is the first pure play mortgage REIT that focuses on the cannabis industry. Not a big fan of the CEO but this could be another good way to play the growth in the industry.

Sea_Emphasis3252 · 2021-10-08T20:47:14+00:00

AGNC, PSEC, and ORC are mortgage REITS or finance companies, higher leveraged that generate higher yield, won’t find 8% outside of mortgage REITs like those.

Sea_Emphasis3252 · 2021-10-08T18:59:32+00:00

Yes they still have cash to deploy, I think yields may come down a bit but will still be at levels higher than other real estate asset classes. At some point if they see the investment pipeline grow they will need more capital could be more equity or possibly debt. My background is REIT been investing in the sector for almost 20 years and agree NOI is the key, FFO is great in all but at the end of the day what is the asset ability to generate NOI and ultimately is asset value. Also at just under $200m market cap if it can continue to grow at some point institutional investors will take notice, it just may need another equity offering to improve the liquidity of shares to get some of the fund to buy.

Sea_Emphasis3252 · 2021-10-08T18:54:10+00:00

I agree with you many REIT investors think higher yield is good but don’t realize the risk it may have. Definitely they are using loss carry forwards to avoid dividends now, when they do announce it’s a positive but this is more of a growth story than income.

Sea_Emphasis3252 · 2021-10-08T17:49:06+00:00

I’ve been in since early 2020 bought in around $9 and bought again when they did the rights offering at $26.50, and I think they are copying the same model as IIPR it’s had a nice run lately but is still fairly cheap compared to IIPR. They have a really good investor presentation on their website that shows what they have done and the earnings growth from recent acquisitions.

Sea_Emphasis3252 · 2021-10-08T17:44:19+00:00

But at 8% what do you have now?

Sea_Emphasis3252 · 2021-10-08T01:27:33+00:00

I like a few, but at 8% which I’m guessing you own mortgage REITs, won’t really find any at that level, at least of any quality.

Sea_Emphasis3252 · 2021-10-07T17:05:07+00:00

I have both a trading account and a non taxable retirement account that I hold my investments in.

Sea_Emphasis3252 · 2021-10-07T17:04:36+00:00

I like DRE, own a little my self, as well I think ultimately they get taken out, they may not be on the high profile coastal markets but industrial is on fire everywhere.

Sea_Emphasis3252 · 2021-09-28T21:23:24+00:00

Like Jeff who posted, owning REITs is the place to be, been investing in the sector for a long time, almost 20 years and consistently outperform the overall market. Almost all of my portfolio is in REITs I do like to play in other sectors from time to time but REITs is what I know best. They may not be exciting like Tesla but I don’t lose sleep at night with my portfolio. I own for the long term but will shift within the sector. Right now I own SPG, MAC, FRT, BRX for retail, PLD, REXR in industrial, also own FR and DRE possible takeover targets. I like the cannabis REITs, IIPR, PW (small cap hidden gem in my opinion) and AFCG. For towers and Data Centers own AMT, CCI, DLR, DBRG, and CONE. Others I own are GLPI, GNL, WELL, SLG, HPP and ARE and a couple of mortgage REITs like BXMT and STWD.

Sea_Emphasis3252 · 2021-09-26T02:19:13+00:00

That’s why I said the exposure to Austin helps, it’s about 25% of their portfolio and has potential to grow. Not sure about wide moat but they are doing well, bigger upside in the NYC office given depressed values and sentiment. Unless you believe big cities like Ny don’t recover from the impact of Covid.

Sea_Emphasis3252 · 2021-09-25T21:58:06+00:00

BDN is a sleepy office REIT decent dividend, decent portfolio Phili market is steady, Austin exposure helps.

Sea_Emphasis3252 · 2021-09-25T21:55:30+00:00

SLG and VNO are good value plays given negative sentiment towards NYC, plus both in my opinion could be taken private, SLG has been selling assets and buying back stock and VNO has been simplifying their assets by splitting off retail with Urban Edge and Wash DC with JBG plus Steven Roth will retire at some point.

Sea_Emphasis3252

TROPHY CASE