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Old 05-19-2020, 01:22 PM   #21
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I have a few shares of Realty Income (O) which I purchased when the market was in a funk. I have been eying storage REITs such as Public Storage (PSA) and CubeSmart (CUBE). Cramer had the CEO of Alexandria (ARE) on his show a week or so ago - that REIT focuses on bioscience properties, its P/E is sky high and yield comparatively low - not a buy IMHO.
I have followed ARE for many years. It is a very well run and solid REIT, but I agree that its current price/FFO of around 19 is elevated and I would not buy at this level.
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Old 05-19-2020, 04:12 PM   #22
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I wanted to write that there are better places to put your money nowadays than in REITs. The post that REITs were up 6% on a day when lots of other things were up 7% is reflective of that. OTOH, one can also say that REITs were not the worst asset class today.

The neat thing is that we can find out what worked by just waiting a few years.
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Old 05-19-2020, 06:09 PM   #23
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I wanted to write that there are better places to put your money nowadays than in REITs. The post that REITs were up 6% on a day when lots of other things were up 7% is reflective of that. OTOH, one can also say that REITs were not the worst asset class today.

The neat thing is that we can find out what worked by just waiting a few years.
REIT index was up 6% and Total Market Index was up 3.5% yesterday - a large out performance for one day. Of course the REIT index had been beaten down harder.
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Old 05-19-2020, 08:49 PM   #24
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I agree that real estate will be going through a huge change, if I am buying an REIT I must consider the underlying business plan. I wouldn't consider hotels, mall investments as viable in my lifetime. O has a couple of lessors who I would consider dead but they comprise maybe 7% of their business.

At that, the other REITs that I have been looking at are u-store its. Much depends on whether or not their assets are in 'built out' markets, and whether or not their customers are abandoning their 'stuff'. We are at a cultural fork in the road, keep stuff, or take it to Goodwill.

I invest in an REIT for income and the picking is slim. AT&T anyone?
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Old 05-19-2020, 10:12 PM   #25
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I agree that real estate will be going through a huge change, if I am buying an REIT I must consider the underlying business plan. I wouldn't consider hotels, mall investments as viable in my lifetime.
Add office buildings to that list as the work from home paradigm becomes the new norm.
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Old 05-20-2020, 02:35 PM   #26
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Well, I'm impressed so many of you are investing in specific sector REITs. I probably should have looked at what VGSLX invests in before now, but here it is:

14.4% - Residential
10.7% - Industrial
8.9% - Office
8.5% - Retail
8% - Healthcare
2.7% - Hotels & Resorts
40.4% - Specialized?

The first two might be ok, but the rest aren't looking good. Anyone have a guess what "specialized" might refer to?
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Old 05-20-2020, 04:39 PM   #27
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Well, I'm impressed so many of you are investing in specific sector REITs. I probably should have looked at what VGSLX invests in before now, but here it is:

14.4% - Residential
10.7% - Industrial
8.9% - Office
8.5% - Retail
8% - Healthcare
2.7% - Hotels & Resorts
40.4% - Specialized?

The first two might be ok, but the rest aren't looking good. Anyone have a guess what "specialized" might refer to?
Everything else - Communication towers, prisons, student housing, self storage, trailer parks, etc.
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Old Today, 03:45 PM   #28
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When you have a diversified portfolio, there may always be one asset class that is underperforming - and is the leader in other years. That being said, I would look at the type of properties the REITS hold and determine if you should switch to another REIT. I have one REIT that is data farm/cloud facilities. I think that's a lot better than one that holds generic office spaces right now.
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Old Today, 04:19 PM   #29
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I do think there could be some upside in Residential REIT’s. If a much bigger percentage of workers are going to work remote then I’d expect them to move and upgrade their spaces. Also could be an advantage for Home Depot and Lowe’s. I wouldn’t touch retail or corporate REIT’S but residential is interesting.
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Old Today, 04:27 PM   #30
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When you have a diversified portfolio, there may always be one asset class that is underperforming - and is the leader in other years. That being said, I would look at the type of properties the REITS hold and determine if you should switch to another REIT. I have one REIT that is data farm/cloud facilities. I think that's a lot better than one that holds generic office spaces right now.
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I do think there could be some upside in Residential REIT’s. If a much bigger percentage of workers are going to work remote then I’d expect them to move and upgrade their spaces. Also could be an advantage for Home Depot and Lowe’s. I wouldn’t touch retail or corporate REIT’S but residential is interesting.
I think you guys are making the classic mistake of confusing a good business with a good investment.

The relative business strength of the REITs you mention may well be as you say, but until you look at prices you cannot possibly know which REITs are good investments. The REITs that you favor may well be overpriced and the REITs that are out of favor may well be underpriced.
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