Investing ideas with 1ml

[JohnnyDoe]

Have fun

List of U.S. REITs

List of U.S.real estate investment trusts or REITs

stockmarketmba.com

SPG is a common one

That’s a great list. How do you choose the right REIT for you? Any guide out there?

 

[TheCryptoAnt]

That’s a great list. How do you choose the right REIT for you? Any guide out there?

Filter by market cap, then over 5% div yield.
Select the ones you like from there.

Then go to their websites and download their balance sheet/look at what properties they have.
This will allow you to remove some from the list.

Then go check the chart / SPX, this gives you the relative strength in visual form.
Allocate your money based on that.

 

[JohnnyDoe]

Filter by market cap, then over 5% div yield.
Select the ones you like from there.

Then go to their websites and download their balance sheet/look at what properties they have.
This will allow you to remove some from the list.

Then go check the chart / SPX, this gives you the relative strength in visual form.
Allocate your money based on that.

That’s exactly what I already did but honestly it doesn’t give me enough confidence. For example, how can I know if the properties they have are good or not?
How come that the reits with most money have such low yield?

 

[JimBeam]

You basically have three choices:

1.
Read some books on the topic (samples below) to get some knowledge on the topic and then pick some REITS yourself

I advise you to either read some books on the topic:

Amazon.com

Amazon.com

2.
Invest in the common and well known ones like:
O, IRM, STAG, MPW, VICI

3.
Invest in REIT ETF that holds a basket of REITs:
VNQ


In the end it depends in what kind of real estate you want to invest: retail real estate (O), medical real estate (MPV, DOC), industrial real estate (STAG), storage real estate (IRM) or self storage (SELF) or REITs that hold casinos at most popular Las Vegas strip (VICI). There are REITs also for residential real estate, hotels, office space, computer data centers...

 

[TheCryptoAnt]

That’s exactly what I already did but honestly it doesn’t give me enough confidence. For example, how can I know if the properties they have are good or not?

I usually go on GMaps and check around the location.
Are there houses? Is it downtown? What other biz are around?
I also search for renting and selling prices around that property.

Then search for crime rate of said location, any news I can find... and go from there.

How come that the reits with most money have such low yield?

% yield is whats left after operative costs so id assume the ones with the most money (and prolly the most properties/most expensive ones) are more expensive to run.

 

[JohnnyDoe]

3.
Invest in REIT ETF that holds a basket of REITs:
VNQ

The current adjusted effective yield is 1.86% as of 07/31/2022.
We are back at stock picking. I don’t think one can do better than Vanguard.

 

[JimBeam]

Yes, there are many other ETFs but these generally yield about 2% or so.
While all from second list have 4% - 4.5% yield (except the MPW that's about 7.7%).
The ones in mortgages you can even see 10+% yields (like ABR, SACH...)

 

[backpacker]

Why are big REIT ETF's performing the way they perform (i.e. poorly) -> Why I Won't Buy REIT ETFs

 

[JohnnyDoe]

Why are big REIT ETF's performing the way they perform (i.e. poorly) -> Why I Won't Buy REIT ETFs

Is it worth to subscribe to High Yield Landlord?

 

[backpacker]

Is it worth to subscribe to High Yield Landlord?

Try the free 2-week trial subscription first.
They go into the details but it -of course- only covers the USA.

You can definitely outperform all major ETF's by going for normal REIT's but it requires some legwork, despite being being a subscriber to their service.
Do not forget about the tax situation, depending on your country of tax residency.

 

[JohnnyDoe]

Try the free 2-week trial subscription first.
They go into the details but it -of course- only covers the USA.

You can definitely outperform all major ETF's by going for normal REIT's but it requires some legwork, despite being being a subscriber to their service.
Do not forget about the tax situation, depending on your country of tax residency.

Any good source of information for non US markets?

 

[backpacker]

Any good source of information for non US markets?

That is what I am looking for, too. I have not found anything useful yet.
Even though not a REIT in it's pure sense of meaning, it is perhaps worth taking a closer look at Brookfield Asset Management and it's various subsidiaries. At least it is more efficient than an ETF.

 

[Filar]

I would invest in ETFs in growing strong economies that are auto-sufficient energy-wise such as Brazil and Malaysia.

 

[backpacker]

I would invest in ETFs in growing strong economies that are auto-sufficient energy-wise such as Brazil and Malaysia.

It's not the worst idea. However, bear in mind that with rising interest rates in the developed world (specifically the US) all those emerging/developing markets (Brazil and Malaysia are both EM) will suffer even more.
If you can find a special situation (stock picking) in one of these markets it is fine. For a broad based ETF investment in these countries it is probably not the right time.

 

[MiddleEuroAsia]

if I would pick one stock , it would be Blackrock (BLK)

"The forth branch of the US government" as described by Bloomberg, the company that survived every major catastrophe in modern history,

 

[369]

if I would pick one stock , it would be Blackrock (BLK)

"The forth branch of the US government" as described by Bloomberg, the company that survived every major catastrophe in modern history,

there are some documents floating arround they have filled for insolvency which is hard to belive

 

[troubled soul]

there are some documents floating arround they have filled for insolvency which is hard to belive

If I am not wrong...It is riskless Business......

 

[StuartG]

Look at carefully manged Singapore REITS

 

[GeneralGogol]

Look at carefully manged Singapore REITS

As interest rates rise REITS get absolutely crushed. Some 30-50% like Suntec Reit, Frasers.

Because who needs to take risk and buy a REIT for 4-5% div yield when even a normal Singapore bank gives you 3-4% in USD...

 

[backpacker]

As interest rates rise REITS get absolutely crushed. Some 30-50% like Suntec Reit, Frasers.

Because who needs to take risk and buy a REIT for 4-5% div yield when even a normal Singapore bank gives you 3-4% in USD...

Exactly.
The same is valid for real estate in general: With rising interest rates it is a bad asset class.

@GeneralGogol : 3%-4% in USD with a normal SG bank account seems overstated and not achievable at the moment. Where did you source that rate?

if I would pick one stock , it would be Blackrock (BLK)

"The forth branch of the US government" as described by Bloomberg, the company that survived every major catastrophe in modern history,

Dividend yield is about 3.2%. If you deduct US-withholding tax which for most of us amounts to 30% we will be in low-dividend territory.
What I want t say with this: In a time of rising interest rates we need dividends that are very high to compensate for the risk of holding equity.

Did you check listed private equity which has come down significantly? There is usually a discrepancy between NAV and market price + high dividends.