Real Estate Summary for Week ending 6/3/22
Earning Presentations 📊
Last 2 weeks of Earning Presentations for the stocks in my portfolio.
Maybe some of you can be interested in 👇
Johnson & Johnson $JNJ
Lockheed Martin $LMT
Procter & Gamble $PG
Sonoco Products $SON
Genuine Parts Co. $GPC
Kimberly-Clark $KMB (report only)
Verizon $VZ (infographic)
Coca-Cola $KO (report only)
PepsiCo. $PEP (report only)
Archer Daniels Midland $ADM
Microsoft $MSFT (ppt presentation)
Essex Property Trust $ESS (report only)
The Southern Company $SO
McDonald’s $MCD (report only)
Now without Fincredible, I need to do the dirty work myself 🤣
Hello, share with you this interesting map of the biggest REITs in the World.
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AvalonBay 💸 $1.59/share
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Pretty cool to see it come all the way back from the Covid drop. There's a lot of Covid plays that had the same drop and recovery... but have all fallen off a cliff again. How are you feeling about REIT's overall now that we're coming out of Covid?
My REITs Recap 🏘️ 🏥
Hello fellow investors,
Last week 3 of my 4 REITs had Earnings Reports.
$ESS - Apartments West Coast
$AVB - Apartments East/West Coast
$OHI - Senior Care Facilities
So let's take a look:
Apartment REITs are doing good across all the US.
Rents are increasing, occupation too and as we can see Costal one, which suffered more in the covid era, are now back on track. As we can see from the next chart, both $ESS and $AVB are now trading higher than the pre-covid ATH, a sign that the market considers the sector fully recovered.
I was lucky to average down on both these REITs during 2020, having now a wonderful $ESS +36% and $AVB +54%. But, of course, I am not planning to sell these dividend beasts anytime soon.
Regarding Healthcare and Senior Living REITs, the situation is a bit worse.
Even both my investments, $NHI and $OHI, didn't report any additional dividend cut, they are still struggling cause the industry is under pressure.
Rent collection and occupancy are a bit low, creating danger for the sustainability of their dividends.
The situation is not good. But I believe in the future needs of Senior Housing and Skilled Nursing Facilities.
Stocks are trading way under the pre-covid levels, and there is a great opportunity for a strong price rally if they can survive such hard times.
I don't plan to increase my investment at this stage; for sure, I will first wait for the Earning Reports of $NHI, which will be the end of February, before taking any decision.
Do you invest in REITs? What's your vision of the market?
Let me know 👇
For the REIT ❤️ Lovers
Hello fellow investors,
I want to bring to your attention a series of interesting resources for all the REITs lovers out there.
REITs are a superb investment vehicle, especially for non-US investors, which cannot benefit from websites like Fundrise, for example, to invest directly in the US Real Estate market.
Here is the link to one podcast from Alexis Assadi. It's dated 2018, but the information in each episode is timeless cause it explains how REITs work. It's a lighthearted approach to understanding the world of REITs, and if you are not familiar with it, I suggest you take a look.
Episode from 2 to 9 are REIT oriented
REIT Database 🗂️
There are plenty of websites talking about REIT investment, but I found that Nareit www.reit.com is one of the best places to go. Extensive database of private and public REITs, articles, statistics, and market data. I suggest taking a look there.
REIT Analyst 🔎
Without a doubt, we need to talk about Hoya Capital https://www.hoyacapital.com
Those fellas are nuts. The level of analysis and the quality of their articles are top quality. Unfortunately, most of their articles are for paid members, but if you subscribe to them on Seeking Alpha from time to time, come out free analysis. I have to say, they are gems.
Hoya capital also runs 2 ETFs on the REIT market:
1) $HOMZ Hoya Capital Housing Index 🏘️
Offers diversified exposure across the entire United States residential housing industry, seeking to invest in many of the fastest-growing real estate companies.
Link to factsheet: https://www.hoyaetfs.com/homz
2) $RIET Hoya Capital High Dividend Yield💸
Provides diversified exposure to 100 of the highest dividend-yielding real estate securities in the United States. Distribute the dividend monthly.
Link to factsheet: https://www.hoyaetfs.com/RIET
Hope you folks are interested in REITs as much as I am, so hopefully, such links can be useful.
What REITs I own: you can check my profile, connected directly with IBRK account, but here is the list: $ESS $AVB $O $NHI $OHI
I will post articles and graphics about the Real Estate market from time to time, so if you are interested, upvote this post and follow me here on SC.
My best 2021 investment
Hello fellow investors,
There is no secret that 2021 was a remarkable year for investors and was especially good for long-term dividend growth investors like me and probably many of you.
I want to take this occasion to write down here and share my three best investments of 2021:
Best by % Return
AvalonBay Communities $AVB
This Residential REIT returned an impressive +58% over the last year, and this doesn't include the juicy dividends I keep receiving any quarter.
Best by $$$ Return
Pfizer Inc. $PFE
The company doesn't require any presentation, I believe :) It stamped an impressive +50% return during 2021. It's lower than $AVB but considering my holding in $PFE is way bigger; this is my best-returning investment by $$$ point of view of 2021
Best Dividend Increase
Best Buy Co. $BBY
The stock didn't perform well in 2021, but it nailed the dividend with a juicy +27% increase. Massive!
Essex Property Trust $ESS +48.7%
The Home Depot $HD +47.8%
Microsoft $MSFT +43.8%
Prudential Financial $PRU +41.1%
Tyson Foods $TSN +40.8%
Let's hope for a similar 2022
Curious about my portfolio? Check my profile or read this memo:
Do you Love Dividend Stocks? Then follow me here on CS
REITs for the Win 🥇 2022
Hello fellow investors 👋
I believe that REITs can be one of the hot class of stocks for 2022 cause they perform better than the market during moderate-high inflation.
Below 👇 graph (courtesy of Nareit) shows historical performance during inflationary pressures
Rent price tends to follow inflationary conditions, also considering that many long-term contracts have inflationary clauses inside.
As a dividend investor, REITs are also a safe and reliable play if you want to collect stable-growing income every quarter 💪
I love ❤️ REITs - Here the ones in my dividend portfolio:
🌀Do you own any REIT?
Let me know which one in the comments 👇
I__f _you_ enjoy _these_ typ__e _of _content, _like&s_hare
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The five that you listed if you had to choose a top two, which two would you pick?
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Insights on the Real Estate Market from Lennar Corp
This morning, Lennar Corp $LEN, a home construction and real estate company, reported its Q3 2021 earnings. The company's earnings call delivered several insights into the current state of the real estate market. Here are some of the quotes that jumped out to me:
- The real estate market is still strong: "From a macro perspective, the housing market remains strong, and these continue to be the best of times. Demand has been consistently strong, while the supply of new and existing homes remains limited. Since new home construction cannot ramp quickly enough to fill the void of the production deficit that persisted over the last decade, short supply is likely to remain for some time to come."
- Supply constraints continue to affect homebuilders: "The supply chain for both land and construction is significantly stressed and that will continue into the fourth quarter and beyond. Accordingly, we expect our community count at the end of the year will be up only approximately 7% versus the 10% we previously guided, and our deliveries will be approximately 18,000 a versus the 19,000 to 21,000 we previously guided."
- Gross margin expansion indicates strong pricing power by homebuilders: "Even with the supply chain constraint, we still grew our deliveries 10% year-over-year, while our revenues from home sales grew 19% to over $6.5 billion. And by remaining focused on orderly targeted growth, with our sales pace tightly matched with our pace of production, we drove a 420 basis point gross margin improvement from 23.1% last year to 27.3% this year."
The U.S. real estate market might have cooled down a bit from a couple of months ago, but the market trends that favor builders and sellers will likely stay a while longer. $EQR $AVB $IRT $ACC $CPT $MAA
If you'd like to read the full earnings call, here's the URL: Lennar Corp Q3 2021 Earnings Call
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