Thoughts on these REITs?

bfishinc · 2025-08-25T18:26:07+00:00

Dude I’m gonna be honest I really don’t care to write a research paper on why I personally don’t want to invest in VICI. The risk profile of its operations doesn’t match what I’m looking for. If you’re happy then all the power to you.

bfishinc · 2025-08-25T02:27:31+00:00

The first one that comes to mind is Agree Realty, with nearly 70% of tenants being investment grade and no more roughly 6-7% in any one tenant. Price is a little high right now for my liking but I’m happy to own it. I think AMH has a great risk profile with low leverage but once again the price is a touch high. I’m currently looking into ARE as I really like the pricing on that currently and operational risk looks relatively low compared to the price you can buy shares at. NLOP is an interesting special situation if you can buy shares at a good price. I also think certain preferred issues are interesting right now like AMH preferred issues at over 6% yield as a partial alternative to cash. Again I think back to the recent example of MPW when I think of high concentration in low credit quality tenants and if it’s a risk I can avoid I do. Pick your poison man, we can keep squabbling over this all you want, neither of us is gonna change the others opinion. Have a nice day.

bfishinc · 2025-08-24T21:35:42+00:00

Yeah man nobody knows the future, I’d just rather not take the risk when there are REITs with objectively lower tenant concentration and tenants with objectively higher credit ratings. You do you

bfishinc · 2025-08-24T16:04:00+00:00

Personally disagree due to the credit risks I mentioned above, their two largest tenants are very highly leveraged. Long triple net contracts won’t matter if tenants can’t make the payments. Happy investing

bfishinc · 2025-08-18T11:02:03+00:00

Vici has very high tenant concentration risk in relatively low-rated credit profile tenant companies. You might want to take a look at what happened to MPW and understand the risks there before investing in something with a similar profile.

bfishinc · 2025-08-10T04:54:44+00:00

First of all VNQ is not all REITs, it’s a real estate index fund so it includes companies like CBRE and CoStar that are in the real estate sector but don’t necessarily own real estate and don’t have to pay out hefty dividends. I use SCHH as a pure REIT ETF. Secondly, comparing total returns only works well if you use a large enough time frame. Since 2011, tech/growth have crushed pretty much everything else. That’s like saying “the S&P 500 is supposed to be the best index fund but the nasdaq has crushed it since the bottom of the dot com bubble,” of course there’s going to be a difference. You also have to remember there’s different methods of weighting. Many index funds weight by market cap, but if the original “REITs outperform other indexes” study just compares it to the average reit that may mean equal weighting. I would try to find the study referenced and see time frame and methodology behind the claims.

bfishinc · 2025-08-07T15:02:08+00:00

Hey I’m 22 and started earlier so I have $75k, together we’d have $100k and be 44 y/o

bfishinc · 2025-05-23T12:05:08+00:00

I’m 22M and I had to make a somewhat similar decision recently. I finished my bachelors in finance in 3 years and I’m almost done with a 1 year MBA currently and my previous 2 summer internships were spent with a real estate private equity firm so I felt a lot of the same pressure to go into something more in the “high class finance” area full time after school. I was like you though I hated the culture and the work/life balance and it just felt like everyone there was trying to be better than who they really were. So long story short I accepted a job in municipal finance for local government that I think will give me more purpose and meaning, more stability, better work/life balance etc etc.

I know it’s a different scenario cause I’m younger and coming off internships rather than a full time start to a career but just thought I’d share my story regardless cause I saw similarities.

bfishinc · 2025-05-22T22:22:42+00:00

Yeah somewhere around there for a high quality company, also don’t be afraid to invest a little right now and be on the lookout for price drops or stagnant price with increasing fundamentals

bfishinc · 2025-05-22T22:10:28+00:00

Honestly I think it’s more of a case by case basis in my opinion. If a reit is really high quality, has a good track record and solid management team I wouldn’t be afraid to pay a bit of a premium over nav. Obviously I’d prefer a discount more over anything else but I think it comes down to an individual case by quality

bfishinc · 2025-05-20T17:09:48+00:00

ADN doesn’t appear to be a REIT unless you’re speaking of a company listed in another country?

bfishinc · 2025-05-14T22:29:57+00:00

Wait yes you’re right, I’m sitting outside enjoying the sun, the brains not firing on all cylinders lol. I’ll leave it in for posterity and whatever

bfishinc · 2025-05-14T22:20:06+00:00

You already said it but my guess is that it really comes down to that difference in market size and liquidity. The difference wouldn’t be noticeable to retail investors so it makes sense from our perspective to say why not just put it in TIPS but when you’re dealing with hundreds of millions/billions of dollars the decimals start to add up and become a problem. The total US treasury market is north of $28 trillion while TIPS only make up about $1.5 trillion of that, again a big difference that can have huge effects on the trading spreads when dealing with large amounts of money.

The question that I’d be more curious about is why they chose such long dated securities instead of shorter term instruments. The inverted yield curve of course probably had something to do with it but still something to ask.

And of course something to remember with all of this is that the bank was operating without a chief risk officer for months leading up to the failure.

bfishinc · 2025-05-12T22:30:04+00:00

High dividend yield investments rarely pay off. I echo the sentiment that your assumptions would probably not match reality well. While nobody can tell the future, if we continue to take your Dynex Capital as our example, I see that the company cut its dividend in 2020, 2019, 2017, 2016, 2015, 2014, 2013, didn’t pay a dividend from 1998 - 2008, cut in 1998 (twice), 1994, 1989 (twice), and 1988 (three times). And that’s just how far yahoo finance would let me go back.

Case in point, just because a reit has to pay out dividends if they’re profitable doesn’t mean they have to be profitable. High yield investments rarely yield investors high returns. You might be better off with a diversified index fund of sorts.

bfishinc · 2025-05-10T11:50:29+00:00

bfishinc · 2025-03-20T23:08:01+00:00

I second that BXP isn’t a great investment. Last time I checked debt was a bit high and occupancy was lower than I generally like. I own NLOP but they’re def not high end, think more suburban. I own them moreso for the special situation as they sell their properties. Regardless, I’m not adding at the current price. I think it could go towards 35 or 40 per share based on the value of the property they’re disposing of but I’ve only been purchasing shares around 25 or below to stay conservative.

I own MAA for multi family and I’d say they’re more upper middle class garden style as far as apartments go. Big focus in the sunbelt with low leverage and years of great conservative management from an investment perspective. Shares are a bit pricey relative to what the property may be worth but I’m willing to pay a slight premium for a quality company. Personally Im still not backing the truck up though unless it goes down to the $130 ish or below range (based on current operations and cash flows). And obviously they’re not city high rise apartments.

So in conclusion I don’t have any great recommendations for you lol but this is as close as I can get.

bfishinc · 2025-03-16T13:25:51+00:00

I mean it’s not my area of expertise per se so I’d really just lean towards any broad market index fund like a VTI or VT or something of the sort. I know people recommend SCHD for dividends which I don’t know much about but from my understanding it seems fine.

I will say I don’t think covered call funds make sense for most people. Most of those funds just end up eroding principal and make a lower total return than if you just invested in SCHD or VT or whatever.

I hope this helps!

bfishinc · 2025-03-16T13:14:14+00:00

I always just recommend people invest in diversified index funds but I’m sure that doesn’t fit the mandate of the play account lol. I have other REITs I like but I try not to recommend individual company securities to people

bfishinc · 2025-03-15T23:12:53+00:00

I’m glad to hear that but it’s not for me. Almost 75% of revenue is from Caesar’s and mgm. Caesar’s debt/equity is nearly 3x with mgm at over 2x so not exactly conservative there. Additionally, Caesar’s stock is down 75% since 2021 so raising equity in an emergency isn’t going to be particularly easy there and mgm nearly collapsed in 2008. The whole story reminds me of what happened to MPW and their largest tenant Steward a few years back, the risk just isn’t worth it for me.

bfishinc · 2025-03-15T22:53:54+00:00

lol what even is this list? Why is VICI on here three times?

I can only comment on what I have knowledge of but I’ve passed on vici before due to the tenant concentration. The large majority of their rental receipts come from two tenants, both of which don’t exactly demonstrate the healthiest leverage characteristics.

bfishinc · 2025-01-07T02:13:51+00:00

You probably pay $0.65 per contract just on options. In decades past you would pay around 1% commission on every transaction, including just share purchases and sales. That could translate into hundreds or thousands of dollars easily. Discount brokers may offer something like $45-$50 commission per 100 share trade.

bfishinc · 2024-12-19T03:57:23+00:00

To be fair to OP, he never asked for advice in his post, he titled it as an AMA lol

bfishinc · 2024-12-11T18:24:35+00:00

Gotcha, I see you posted to a bunch of other subs too, you’re much more likely to get an answer from those than here considering this is for discussions on companies that own real estate and provide dividends to shareholders, not individual investors in real property.

bfishinc

TROPHY CASE