REIT

Rare-ish_Birb

What you're not contemplating is the yet unseen move for the hyperscalers to go capital lightagain by dumping all the data center assets into quasi REIT structures, paying slightly over 30 year treasury yields. There - solved it for ya. 🥳🥳🥳

Arboga_10_2

We're 65% equities (60/40 US/International), 30% bonds and 5% alternatives (REIT ETF/Gold). We have paid off our house plus a rental unit. And then we have 2-3 years of living expenses in cash.

jonclod_vundum

Bayer AG Smart Centres REIT Vale SA

Derpapotamus

Maybe I'm biased because I did the same DD independent of you, and came to the same conclusion, but your evaluation is spot on. What makes it more juicy is their Dana Farber cite showing it helped with patient selection for Enhertu (AstraZeneca's monoclonal antibody cancer treatment). If they get a Companion Diagnostic deal, it's beyond mooning. It's going to $10 overnight. The problem, which Jeff Busch identified immediately, is the value is trapped in a dumpster fire wrapped in a tire fire. Ignite is commercial stage. It works, it's backed by Medicare, and it has been shown to be very useful and of interest to big pharma. But no one will touch it because it's in the process of burning down. Better to dump $10m into shorting it, bankrupt them, then buy the IP for pennies on the dollar. And now the current situation is somewhat interesting. They've reached the 1b share cap, so they cannot dilute any further. Which is good for shareholders, but bad for them. They need cash to make it to September and finish the merger. Bear case is still very, very valid: They're swimming in toxic debt. They've just been delisted. The price is in the gutter. They're on the brink of bankruptcy. The bull case however, is also valid: They're sitting on hundreds of millions in locked up value. It's value that has evaluated by a 3rd party at $150m, so even if you don't trust my DD, Copley did their own research. The new guy at the helm has built one billion dollar medical REIT empire. Maybe he can do it again. This isn't even to mention Adimune and Pearsanta, two other assets they own that definitely are promising.

Any_Influence_8305

WEN is the only REIT I'll ever "invest" in. Loading up on calls, and baconators intraday to pump the stock

Nottwosmrt

Aren't 10s of thousands of Wendy's owned by YUMM REIT? How does that work out if locations are privately owned, owned en mass by a REIT, and the stock is for the franchise over all? Nice locations or bad locations, were you at corporate run stores, ones owned by YUMM, or stores owned by one dude who did a bad trade on IBM contracts in the 80s, found himself out back by the dumpster to make ends meet, and just took the keys from the old owner one day? More research is needed. I suggest counting strips of bacon at various locations baconators to be sure of quality, or profit gouging.

skilliard7

Depreciation is a real expense and shouldn't be ignored. It's not like a REIT where its just a paper expense. Hardware loses its value over a span of ~5 years, so you can't just ignore that.

jaysamu3l

Armour Residential REIT is a better play, 0.24 cts dividend every month. With current stock price thats almost 17% dividend a year... https://preview.redd.it/0zftgf8ojg9h1.jpeg?width=1220&format=pjpg&auto=webp&s=a28be7337c91ab377b04edb844a2c9f6542fa112

Rare-ish_Birb

Yep. Exactly. Move the debt and assets, via sale and leaseback agreements into some some new REIT structure. The SPA deals they've done so far have interest rates at SOFR + 8%, which is insustainable in perpetuity. They'll transfer the assets off their b/s, take a little hit on the present value calc, and pay a lease fee that generates enough cashflow for the REIT to cover maintenance, depreciation and a slightly juiced divy to long term shareholders like insurance companies. It'll work, if the insurance companies stay solvent after the upcoming private credit implosion. 😂😂

Rare-ish_Birb

We may not see the bubble actually burst, if the hyperscalers offload the datacenter assets and related debt vehicles into some new independant REIT structures while the hype is still keeping valuations high. It'll happen. That may be an initial clue the capex cycle is ending. Hyperscalers want to be asset light again, but their clean almost debt free balance sheets were the only f/s that could absorb the massive debt needed for the buildout. Just my view.

1000_Faces

Well you can do that, but after 20 years in commercial real estate I can tell you that means absolutely nothing. Cuz what's going to happen is the corporate raider that now owns a huge chunk of this is going to make a push to take it private, they're going to spin off all the real estate into a triple net REIT and they're going to borrow against it massively and do whatever they want with the money. The real estate is incredibly valuable to this group that's trying to take it private. That's what they're after. You can go ahead and look at balance sheets and I'll look at straight assets. The value in the real estate is going to dictate any stock buyback price. Period.

aronnax512

REITs are fine in a Roth (provided thr company is actually good rather than some weird mortgage REIT levered to the gills).

the_secret_my_gf_dk

This is the next reddit takeover movement, the goal is literally to get redditors on the board. We need to get $1 so we don’t get delisted. And we are spinning off a division for 150M. The CEO was CEO of a $1B REIT before.

Succulent_Rain

Consumer staples and financials have been range bound for the past couple of months which is why I’ve been adding to them since they will be poised for a breakout once this AI bubble bursts. REIT’s are very dangerous because interest rates are going to go up. Energy will crash once the next recession arrives, similar to what happened right after June 2008. I exited all my energy positions in March, when they reached a peak. With healthcare, you have to be careful where you invest: biotech and Pharma are ATH, while medical devices and insurers are not.

RowdyAuklet4000

Salesforce prints billions in free cash flow and trades at 10.5x forward earnings, and the market is treating it like a regional mall REIT. Meanwhile some semiconductor company that has never been profitable is up 40% this month.

the_secret_my_gf_dk

The compant is spinning off Ignite at 150M which will keep it listed on the Nasdaq. Once it stays listed. The new CEO is an absolute beast (former CEO of a $1B REIT). Once the spin off is done the company gets into offensive territory.

HunterMichael92

Agree, the company is financially sound in a interest-high environment, it is like a Marketplace REIT, that has upside potential from strong liquidity and expansion of products/services. They aren't boggled with store leases like PETCO and the debt other pet brands have. Hence, why I chose to heavily position my portfolio for upside from here.

_galaga_

I doubt anybody can explain exactly why you're seeing what you're seeing, tho. Bad managers harvesting fees and uninformed clients that don't have the financial expertise to understand how sub-optimal their portfolio looks? People with enough money to not care as much about the details? For some things like the guy with the REIT at 1.5% there could be some basic financial planning box checking going on. I've seen that with some advisors as well.

derpinard

For a kid, something in the defense sector could offer a simple link with news. Drone stocks tend to be cheap. Or maybe just a REIT like O or ARE, so he can feel like a landlord and get his monthly/quarterly paycheck

greytoc

FYI - OP is asking about a BDC - not a REIT.

anthematcurfew

So drop the RE from REIT

anthematcurfew

That’s just a REIT.

Familiar_Potato1244

Respect for actually running it instead of just yelling scam. But you've gone after the one number they already flagged as hypothetical and skipped the actual bet. The $29B, they literally label it "subject to actual pricing, utilization, deployment." That's a ceiling with a warning sign on it, not a forecast. Knocking it down isn't a takedown, it's tipping over something they handed you. Your power/solar math assumes each canopy's gotta be a closed energy island, power and cool 480 GPUs off its own 2,000 sq ft. That's not the model. It's compute on existing grid connected lots, solar offsetting load, storage buffering. Power sovereign means not needing a new hyperscale substation, not "runs 100% off its own roof.", it's a design they didn't even pitch. And the whole thing skips what you're buying at a $6M cap. Hyperscalers are getting blocked on power and land right now , and it's the entire reason a distributed REIT sited model exists. One binding deal + one running deployment re rates this whether or not the total caps way under $29B. Where you've actually got me: per canopy cooling cost and whether it's in the model. Don't have that, not gonna pretend I do. But, I think "physically impossible" is the wrong call.

OShaughnessy

Here's my quick mafs on the business, yeah? ### They say: | They Say | Quick Mafs | | -------- | ---------- | | Each canopy = 2,000 sq ft | 4M sq ft ÷ 2,000 sq ft = 2,000 canopies possible | | Each canopy holds 480 GPUs | 2,000 canopies × 480 GPUs = 960,000 GPUs total | | GPU rental = ~$30,488/year | 960,000 × $30,488 = $29B/year (TAM) | ### What's gotta happen: | What They Need | Reality Check | | -------------- | ------------- | | Sign binding REIT contract | Currently has non-binding LOI (could walk away) | | Build 2,000 canopies | 0 canopies built, 0 GPUs deployed, 0 revenue | | Buy 960,000 GPUs | GPUs cost $28-58 BILLION total | | Power all GPUs from solar | 480 GPUs need 80,000+ sq ft solar (canopy only 2,000 sq ft) | | Get paying customers | No contracts, no revenue, unproven business | | Stop burning $5M/year on audio | Current business loses $5M annually | ### Them vs. Laws governing our universe | What They Claim | Physical Reality | | --------------- | ---------------- | | 2,000 sq ft canopy fits 480 GPUs | 480 GPUs need 80,000+ sq ft of solar panels (40x bigger) | | Solar powers 480 GPUs | 480 GPUs need 0.42 MW; canopy produces 0.1 MW (4x too little) | | $29B annualized revenue | $0 revenue, 0 GPUs, 0 canopies, non-binding LOI | | "Zero-water liquid cooling" outdoors | 480 GPUs need industrial HVAC (this adds $millions$ in costs and can't fit in the canopy) | | Cooling costs included in rental | Cooling 480 GPUs = $hundreds of thousands$+/year per canopy (uncalculable?, not in model) | | "Power-sovereign" datacenter | Needs $millions$ in BESS + grid backup for 24/7 operation | | $250M DCF valuation | Current $6.9M cap = betting on all this math turning real | Bottom line: The TAM, as stated now, is physically impossible. Happy to hear a counter / where my calcs are off. Make of this what you will.

Alarmed-Camp8489

Thanks for the DD. Couple things I haven't seen mentioned that made me pull the trigger, because I think most of the bear takes in here will just look at the chart and go "down 90%, scam, next." The thing that flipped it for me is realizing this isn't a company diluting to stay alive. It's basically a clean shell being used to list four businesses that already exist. That's a totally different animal than your usual penny stock that's burning cash with no actual product. And they all run on one shared platform instead of four separate burns, so it's one small team leveraged across infra, healthcare, travel and audio. If even one of those works the rest is kind of free upside. Then there's the timing, which I think people are sleeping on. S-4 is already filed and in review, and the cash condition (the thing that usually kills these) is also already done with the $12M raise. So you're not hoping the deal gets funded. IT'S FUNDED. You're just waiting on it to close. That's a way smaller window of stuff that can go wrong, and it's shrinking every week. Most people are gonna find this after the ticker flips to MCFN and it's already run. Whole point is to be in before that. But the real reason I got in here is LT350. AI datacenters are getting straight up blocked right now over power and land. LT350's whole thing is distributed compute that gets around that (solar canopies, battery buffering, no-water cooling) on land that already exists, parking lots, hospital lots, whatever. And they've got an LOI with a REIT that owns like 200 properties. You don't even need the giant $29B number to be real. You need one hospital site to actually go live and the whole story changes. And the founder taking 80% in stock, 130+ patents, putting his own companies in... that's not a dude setting up to dump on you. That's a dude who thinks it's worth way more than this. So yeah. Floor's tight (we're basically sitting on the all-time low), catalysts are lined up and close, and the gap between a $6M cap and a $250M valuation is the kind of thing you almost never get with this much of the deal risk already gone. Obviously not advice, size it small, it's a microcap and the businesses are early and the $250M is their own model not a real quote. But "it dropped so it's a scam" is lazy. Real question is whether something real is showing up, and the filing, the funded cash, the REIT stuff all say yes.

Loose_Hornet4126

Land/REIT. You can put it into a remedial education you so desperately need

Kbarbs4421

I appreciate the detailed thoughts. Brevity can be dangerous in this sector. I agree that Trulieve (the parentco) has proven itself to be a top tier operator with strong fundamentals, though that's partially because it has a bit of a monopoly on its home state and expansion beyond that will eat into that moat. Harvest is the company they acquired. As for REITs in this sector, I've personally been skeptical and avoided them for three reasons. First, there are a lot of shit operators out there that are going atrophy or go under altogether, leading to defaults a la Pharmacann. Second, of federal reform leads to banking reforms, then I imagine traditional financing avenues will undercut the current REIT performance, though this is an assumption that I'd love to be countered on. Finally, if fed reform leads to interstate commerce, then I assume a lot of the smaller, state specific facilities will likely be absorbed into larger regional hubs (again, assumption). And I believe IIPR and NLCP both have large portfolios of small to mid regional sized facilities. Cumulatively, that feels like a REIT model that worked really well during prohibition, and may fail as things get more laissez faire.

Prestigious-Fix-3304

wild that utilities get absolutely wrecked when CPI runs hot but makes sense when you think about it. those dividend yields start looking less attractive when rates might go up and people rotate out of the "safe" plays been watching some REIT plays recently and this data confirms what I suspected about real estate sensitivity. the -0.88% delta is pretty brutal compared to like consumer defensive actually going positive during hot prints your timing might be solid too since we got that employment data suggesting things aren't cooling as fast as fed wants. just remember these sector rotations can be quick and violent so maybe don't go all in on one play curious if you looked at the timeframes for these moves? sometimes the initial reaction gets reversed in following days when people actually digest the numbers

gls2220

They aren't a REIT yet. That's likely several years away.

GloriousLebron

Short-term fully depends on how the overall market performs, especially AI, a lot will also depend on their new announcements. Long term is the goal since they're an REIT, they only brought 100MW online so far so they have a long way to go to actually get the revenue. give it 2-3 years

Top_Performance_732

2 btc, spx, short term bonds, a little in gold/metals, maybe REIT. Then keep a small bankroll to keep yoloing

RJ5R

That's like saying your $3,800/mo luxury apartment is basically free from a relative standpoint bc the REIT spent $100M to build the 400 unit complex

sl33ksnypr

It's a mortgage REIT $AGNC. I also have another stock that has paid similar yearly dividends but it's a shipping company. I hardly have any money in it though because I don't trust it that much. $TORO

L_DUB_U

What stock pays that high of a dividend? Is it a REIT?

adarkuccio

Fixed for you -> Realty Income (REIT), ticker: O

turkeybags

You fat fingered the ticker you're trying to pump. Classic WSB ETRACS Monthly Pay 1.5X Leveraged Mortgage REIT ETN (MVRL)

Ill_Ground_1572

Awesome dude. Well done! I am trying a similar approach. Between me and my wife we are up about $200k now. Too scared to buy options. I am also starting to buy some copper, gold and silver mining stocks because I think this will be a good area of growth for the next decade. Was this in an RRSP? You probably now this, but don't forget when you decide to retire, you could also buy Canadian dividend stocks and live off them tax free (up to $60k per year anyway if it's your only source of income). My neighbor did this with him and his wife. They made $120k per year and never paid a dime in taxes for 20 years. With their house paid off, had more money then they could spend. His biggest problem was donating the extra income when his dividends went over $120k to avoid taxes. That and he did rebalance and reinvest some of the dividends into different stocks to keep the total around 120 per year between the two of them. I believe he had about 12 different blue chip companies such as RBC, Suncor, TD, CNR, Enbridge, one of the REIT companies, one of the utilities if memory serves. But I haven't talked to him since we moved about a decade ago. But those stocks are all worth many multiples now.

Striking_Astronaut38

They did the same thing with their REIT. Good call on this one

thewimsey

If you are going to post something like this, you need to be a little more thorough. >The original 90-stock index was way too narrow to capture the massive post-WWII expansion of the US economy. 90 stocks was chosen because of the difficulty of updating the stocks daily before computers. Its expansion in 1957 had nothing to do with the postwar expansion of the US economy, and everything to do with the fact that everything could be calculated electronically. The S&P was, if not the first, one of the first fully electronic indexes. >Expanding it created the modern concept of "the market" and gave John Bogle the mathematical foundation to invent the first retail index fund in 1976. Why mention Bogle? He didn't invent the index, or create the first index fund. He did make the first fund available to non-institutional investors, 20 years after the S&P expanded to 500 stocks...but that's not much of a reason to name drop him. >While morally well-intentioned, an index's job is to ruthlessly reflect the reality of the market, not to act as an activist policing corporate governance. I mean, maybe. But the S&P 500 is a subset of the entire market and they've always had criteria for what they include and don't include. I get that you don't like this criteria, and I don't necessarily disagree with you, but if you really want to >ruthlessly reflect the reality of the market you should buy a total index fund. >This structurally drove up REIT valuations and permanently tethered commercial real estate closer to the broader stock market's volatility. Ultimately a good decision. This is not clear either. >Right now in mid-2026, they are quietly rewriting the rulebook to accommodate the incoming wave of massive IPOs like SpaceX and Anthropic. They aren't "rewriting the rulebook" and they aren't "quietly" doing anything. They are taking comments on whether they should change rules around profitability and the waiting period. Why not explain *exactly what they are doing?* It's a long enough article. >A lot of people treat the S&P 500 like it is a passive, mathematical law of nature. This is a kind of strawman argument designed to make what follows seem important. TL;DR: C-. See me in my office after class.

LookAtMyUnderbite

REIT investments are ass rofl long term investments that are so long, you can barely see the dot that is your profit. Playing landlord without any of the glory or reward. Is there at least a dividend? Why not just invest in AI and be at the top of the food chain? There are safer investments that make the same returns as REIT. You might as well invest in hotels like the good 'ol monopoly game analogy. You're better off investing into the energy sector if you're planning to piggy back off AI and datacenters. Real Estate is like the most bottom feeding bit for AI, land is cheap and a plenty for that demographic. You're going to be bag holding for a long time. Unless you know something I don't, if so, please educate me.

Downtown-Ad-9611

This was the only REIT I'd seen where the insiders routinely bought stock (per openinsider.com). Things have sure gotten rocky.

Accidental-Genius

Welltower is a REIT and it’s popping. Not all REIT’s are bad. Hell, there’s a pretty solid argument that McDonalds is a REIT wrapped in a bun.

madhattr999

> Many people when they stock pick avoid REITs. I just wondered if you knew why people were avoiding REITs.. Is it just that they are less aggressive? I have a REIT etf for diversification.

Jac_Mones

I am just a random fuck on the internet so take this with a grain of salt. I will tell you what I would buy. NLCP Why? Because they are a small cannabis REIT in a sector that is considered "risky" for stupid reasons. Their financials are rock solid, they pay an enormous dividend, and they have a P/E of like 12 right now.

Krasmaniandevil

I'm no accounting wizard, but IRM is a REIT and I believe that can make earnings wonky. The metric I see more often for valuing REITs is P/FFO.

srfdriver99

You can always invest in a REIT to get real estate exposure without dealing with the hassle. However, without the ability to juice it with leverage, it's generally not going to produce the returns. There are some anti-correlations to the S&P, but they're not in a way that is super useful, so I wouldn't recommend it as a super large portion of your portfolio. The big upshot is they spew out a ton of dividends, which is useful in retirement/unemployment situations, and there are non-residential REITs (datacenters, cell towers, etc) as well as triple net commercial (like the venerable $O) or you can just go for an ETF like VNQ (or VNQI and get international exposure, which you definitely aren't doing on your own). So it still serves a role in a diversified portfolio in my book, but a small one.

SaucyCouch

Yeah the main risk with buying 1 house vs investing in a Real Estate Investment Trust (RE fund ETF basically) is that if your 1 house is vacant, you’re screwed vs having a professionally managed portfolio of homes (could be up to 1000) You get lower returns from the REIT than just owning a rental property, but you do 0 work and have diversification. Basically you can invest in any sector and do no work through the stock market, you just have to choose wisely. Also just to mention the point about the leverage aspect: this can benefit you more because it magnifies gains, but the main risk is vacancy. If your property is not rented for 6-12 months, can you service the debt? If not you lose everything

Ill-Emergency-6949

MAA is a reasonable starting point for residential REIT exposure — Sunbelt-focused, strong same-store NOI growth historically, and the 25% drawdown reflects rate sensitivity rather than fundamental deterioration. The balance sheet is clean compared to peers. A few alternatives worth evaluating: EQR (Equity Residential) — coastal urban focus, higher quality tenant base, more rate-sensitive but better positioned if remote work reversal continues pushing people back to gateway cities. NMR/Camden Property Trust (CPT) — similar Sunbelt exposure to MAA but slightly smaller cap, historically strong dividend growth track record. INVH (Invitation Homes) — single-family rental rather than multifamily, different demand dynamics. Benefits from the same affordability crisis keeping people renting longer but with lower tenant turnover. The macro backdrop actually favors residential REITs right now despite rate pressure. Home affordability is at historic lows with mortgage rates above 7% — that structural demand for rental housing is not going away regardless of Fed policy. The risk is if Warsh cuts rates faster than expected, home buying resumes and rental demand softens at the margins. On Arrived specifically — you are right, the fee structure erodes returns significantly versus direct REIT exposure with full liquidity.

vcpowerlaw

Arrived is probably fine as a small learning allocation, but I wouldn’t treat it the same as direct real estate or even public apartment REITs. Private platforms tend to add fee layers and friction getting your money back out. Public REIT ETFs aren’t exactly fun, but at least you know what you own and you can sell whenever the market is open.

WesternPirate4448

If you are looking to pivot away from Arrived, Fundrise or Roots are probably the closest direct competitors in terms of a low barrier to entry, but the massive platform fees across all fractional platforms can really drag your net returns down below a basic high-yield savings account or a public REIT index like VNQ, fr. I have been moving most of my real estate allocation toward private credit funds lately because the yields are a lot more consistent than single-family vacation rentals that sit empty for months, lol. My current setup for tracking everything is Excel for running the raw cash flow math, Runable for spinning up custom visual dashboards and performance reports from my spreadsheets, and standard Vanguard tools to monitor my core index funds. Definitely check the liquidity lock-up terms on whatever alternative you pick because your capital will likely be completely frozen for a minimum of five to seven years, tbh.

junbun2

oh i forgot, I owned a bit of JEPI ... It's tied to S&P500 but they sell options for income i think. last year i think the div were 8.5% . how do you think this compares to REIT? I saw O div was 5.5% which is good. seems like both of them have -alpha compared to s&p 500 last few years.

SirGlass

I have always been skeptical of these crowd funded real estate investments. I mean we have multiple ways to fund a real estate venture, from getting a loan from a bank. To public REIT , to private REIT, to various other people who will gladly loan you money or do some sort of partnership with you. Rich people love real estate for all the tax advantages that come with it and will throw money at just about anything real estate related. Meaning I have always been skeptical of these companies that pitch real estate deals to retail investors. It probably means banks , private relestate companies or even private credit took a look at their plan and said "we going to pass" so they are now pitching it to retail investors with the promise of 12% returns.

Jax_Alltrade

NLCP and TCNNF. Cannabis rescheduling = tax write-offs = bigger profit margins = better MSOs / REIT performance. NLCP is an extremely well-run REIT with an amazing dividend, and TCNNF is one of the most connected, well-run MSOs in the industry. Additional tailwinds from the looming Hemp loophole deadline at the end of the year will propel profits even higher as a section of the $21.8 billion THCa hemp market either switches over to Medical / Recreational, or lobbying for full legalization drives hype.

notapersonaltrainer

Any look at his career, Warsh is an inflation hawk, even to a fault. He was banging the inflation drum years after TARP despite it never materializing. Meanwhile Powell, who Reddit suddenly has the biggest hard-on for: * Rate hikes came generationally late, with ZIRP and QE maintained well past the point when inflation had exceeded 5%. * Four consecutive years of above-target inflation. * Supervision failure. Known vulnerabilities at Silicon Valley Bank were not adequately addressed, culminating in failures on a scale not seen since the Global Financial Crisis. * Oversaw extremely high concentration of ethics and trading scandals, Robert Kaplan (stock trades), Eric Rosengren (REIT trades), Richard Clarida (portfolio), Raphael Bostic (blackout trades), Adriana Kugler (rule violations), Jerome Powell (trust trades), all before Cook and the renovations were brought up. Number one alone should put Powell's legacy alongside Arthur Burns. And unlike Burns, Powell had the cautionary hindsight of Burns' legacy. Collectively this was possibly the worst Fed term in central bank history.

red7standinby

Well, she lost a pile to a ponzi-REIT scam from her former accountant. He went to jail for it. Got convinced to purchase a couple rental houses across the country only to be fleeced by the property manager that talked her into it. Got out of that one and bought a couple condos in Mexico... and now trying to get out of these only to discover they were never properly titled. Finaly had a a chunk of cash from a divorce and for the first time in her life decided to invest in the market in January of this year. She called me in a panic in March saying she was going to sell becasue of the tarrifs (while down). She didn't listen to me.

cheezweiner

You know REIT dividends are legally bound to be extremely high right? All REITs **HAVE TO** pay 90% of all profits out as a dividend. It’s a law.

iamgover

This is exactly why the market feels untradeable right now — the macro playbook says pullback, but the liquidity playbook says buy the dip. Both are right at the same time, which means neither works cleanly. Honestly the hardest part isn't reading the macro. It's knowing whether any of this actually breaks your specific thesis on your specific holdings. Does sticky inflation matter to the REIT you've held for 3 years? Does it change the AI infrastructure story? Depends entirely on why you own what you own. That's the part I outsourced. I use [http://www.InvestorYachtClub.com](http://www.InvestorYachtClub.com) — you tell an AI agent your actual thesis in plain English, and it watches news, filings, and analyst actions through that lens 24/7. So instead of doomscrolling macro Twitter every time yields spike, I just get flagged if something actually threatens my position. Bad news not mattering unless it's catastrophic is kind of the point — you just need to know which catastrophic actually applies to you. 3 agents free, worth a look.

Fantastic-Ice-1402

Here's some slop/receipts to consume: IREN (IREN Ltd) and APLD (Applied Digital Corporation) are actively transforming from crypto-mining into key players in AI data center infrastructure. AMT (American Tower Corporation) is also heavily involved, serving the AI data center market through its subsidiary CoreSite. Here is a breakdown of their involvement in AI data centers as of mid-2026: 1. IREN (formerly Iris Energy) • Role: An AI cloud computing provider that is pivoting its crypto-mining capacity to high-performance computing (HPC) data centers using renewable energy. • AI Focus: IREN focuses on developing large-scale GPU clusters for AI training and inference. • Key Developments: As of May 2026, IREN partnered with NVIDIA to deploy up to 5 gigawatts of AI infrastructure. They also secured a major $9.7 billion, 200MW, five-year AI cloud contract with Microsoft. • Capacity: Currently, they are expanding to 150,000+ GPUs to support AI workloads. 2. APLD (Applied Digital Corporation) • Role: A builder and operator of next-generation, high-density data centers specifically designed for AI and high-performance computing (HPC). • AI Focus: APLD builds "AI Factories" to provide infrastructure for hyperscalers and enterprises, offering services including GPU compute power. • Key Developments: APLD has secured large-scale, long-term leasing deals, including with companies like CoreWeave, and has secured $2.15 billion in financing for large AI projects (Polaris Forge). 3. **AMT (American Tower Corporation)** • Role: A real estate investment trust (REIT) that owns and operates wireless infrastructure, with a significant data center portfolio. • AI Focus: AMT operates through its data center subsidiary, CoreSite, which provides colocation and interconnection services to support cloud and AI deployments. • Key Developments: They focus on "edge" data centers to support low-latency AI applications and continue to develop multitenant communications real estate to meet AI demand. IREN AI Cloud & Data Centers - Vertically integrated, 100% renewable energy focus, massive GPU deployment. APLD AI Data Center Hosting - Specialized in building high-density, liquid-cooled "AI Factories" **AMT Data Center REIT** - Large-scale, established owner of 28+ data centers (via CoreSite). Note: IREN and APLD are often considered high-growth, higher-risk players in the AI space, while AMT is a larger, more established infrastructure REIT.

dinnerthief

I bought fundrise as a REIT (essentially) back in 2019, saw they were doing the innovation fund and put an addition 25k into it because I wanted exposure to some non public companies. Put more in right before the IPO. Probably will cover my investment and leave the profit in for a bit. havent looked into a FA yet but probably will soon.

Noddite

Coreweave is literally just a REIT without the dividend benefit. They lease warehouses and stuff in the warehosues to tech companies. Their business model is doomed for failure. They are drastically overpaying for ever increasing tech for their warehouses. They will likely never recoup the cost and their earnings will be destroyed by depreciation. Feels almost like this is by design as a shell company for the industry to absorb costs and then be cast off a few years down the road.

vcpowerlaw

I’d probably be concerned as well. This kind of no distribution with a 20% drop is not normal across the whole self-storage REIT space. I would treat it as fund-specific and then confirm their leverage and what the distribution policy says. Also, a K-1x capital account dropping to 42k can be allocations and fees, not a clean market value, so I would ask how they calculate and report NAV and what the exit terms are.

vocation888

There are Natural gas and oil pipelines that have never cut dividends, same with the original REIT from 1974 that's gone strong through good and bad economic cycles- Realty Income Corp ($O). So there's no need to buy a mutual fund or ETF especially when looking at their management fees. That said, only buy dividend yielding stocks as part of a well balanced portfolio. You can't beat inflation and save for the future with dividends alone, you still need stocks, mutual funds and ETFs.

engprog

I’m not sure about this specific REIT but I’ve seen other examples that are essentially single companies. Find a more diversified index.

KweenieQ

You say that now, after the fact. What were you thinking in the moment? What led you to those winners? They matter only if you've changed your predictive investment methodology as a result. 94% of my current holdings are boring. They're what's going to last me through retirement. The remaining 6% are in two accounts, by themselves: a small inherited Roth (where I put growth and high-return issues) and a taxable sandbox account (where I hold cash for impulse purchases and whatever else I want each year). That sandbox has seen a lot of playtime over the last 10 to 15 years. I made a killing on a REIT once to the tune of $2700. At one point, I made almost as much profit on an energy ETF. There's always been something, but the principal's always been small. I've gotten better with practice at equity picking over the years, but enough duds in the mix have convinced me that that's no way to fund a retirement.

AncientGrab1106

Agree. ARE is an incredible REIT which will turnaround

Sturdily5092

So many people who bought way out of their means are now getting that lesson, but there's really nothing celebrate because it's not like now houses are coming to market. Just look at the REIT ETFs blowing up right now, big Corp is buying up the prime properties for pennies on the dollar.

stoweker

The private credit funds themselves take first loss on the shit loans in the CLOs, then the bond holders which are other PE firms hedge funds and like bond managers. Banks aren’t holding bag. I’m more worried about the multi only CLOs than the generalized CLOs, at least retail and industrial and hotels are still doing ok. I’m only investing in real estate directly right now buying 4-6 unit deals for the tax advantaged income and refi machine; I’m not a swap til you drop type of person just buy stuff in one area I know and like get the cost seg and take normal depreciation none of the fuck around stuff. Real estate is useful in that context. For retail investors I honestly don’t know what you’re getting right now owning a REIT other than a ton of volatility and a truly unclear path to what’s next.

snoyokosman

pretty much yah, dealflow has been at a standstill except for the creme de le creme where the (smart) big money can sit on it for years. There have been good MF basis plays out there past couple years (Minneapolis for one) if you are willing to take negative leverage for 5-10 years... REIT's in general have felt dead to me for a while, and I'm not sure im too long on their business model. But it is the only way retail can get exposure to RE. Biggest risk in MutliFam is rent growth though, going to be ugly next few years.. private credit is not just screwed in software. The CLO bomb is fucking huge, I've been sounding that alarm for years. Its all circular funded/bought. The buck has to stop somewhere and I wonder who is going to end up holding the toxic waste. Potentially the debtors themselves. Is Jonathan Grey self dealing all his debt? Very possibly, this stuff is very shady and will have to be regulated big time when the bottom falls out. Will start with tech once the ai bubble pops, and then everything else will as the wealth effect backstop finally collapses.

Recent_Button_1

Both points are exactly right and the rate environment question is one we can actually start answering now. We have VIX history going back to 1990 in the dataset so regime analysis by volatility environment is already on the build list. High VIX versus low VIX recovery times is a cut we can run. The rate environment split is more interesting and harder. We have the data range that covers multiple rate cycles, the zero rate era, the hiking cycle starting 2022, and the cuts after that. Splitting recovery times by prevailing Fed funds rate at the time of each ex-date event is doable once the fundamentals license is in place. Your structural versus weak business distinction is the most valuable framing though. A REIT that recovers slowly because of its size and liquidity is very different from one recovering slowly because the market is pricing in a distribution cut. That separation is exactly what the regression needs to produce to be actually useful for screening.

VuvuzelaSound

I can tell you know what you’re talking about so thank you for your input. But I would advise you reread some parts of what I said. The 18-25 P/FFO I explicitly said was not a likely immediate target, something fundamental has to shift but it’s also not impossible to see it reach those levels in the next couple years. $ARE capturing 35% market share because they own 22% of all the lab space and they rent at much higher occupancy levels than their counterparts. Ergo for every 100 leases signed in biotech lab space $ARE likely can capture more than 22% though if you want to put a lower multiplier than that it’s fine. It seems like your thesis isn’t actually against the core points I made but rather your last statement where you mention that you think fundamentally the lab space REIT sector is moving towards obsolescence, in which case we don’t have a lot more to discuss since I fundamentally disagree with that

stoweker

My brother in Christ, you said 18-25x P/FFO - that’s a 4-5.5% cap - literally nothing is trading in real estate that tight right now. Also sure $ARE is a specialized reit but it’s still fundamentally an office reit just with TI costs like 6x normal fit out. Does that create some stickiness, sure, but it also means your basis creep is out of fucking control if you need to relet. The lab vacancy outside of $ARE is what you should be benchmarking to, not just that $ARE has a lower vacancy rate - there is a fucking ton of unabsorbed space in their core markets that will continue to be a major drag until the VCs step up and turn on the spigot for funding drug development - that’s not on the horizon. So what’s left? Converting buildings back to Class A office and taking a huge L? Even the existing buildings you’re talking about selling - how are those things marked and who’s the bid for them? The only people buying office right now are taking down either super long term lease main+main new build towers or stuff that’s so cheap the land value is like, a negative. I don’t see how you can reasonably UW $ARE to better than a 15% vacancy rate, dropping your renewal assumptions to 50/50 and assuming that even in a renewal you’re coming out of pocket an astronomical amount of TI/SF to retain. I agree they own good buildings BUT the lab market is so saturated right now it’s going. To take years to recover to a normalized vacancy rate, cash drag on vacant buildings is insane, ROI isn’t super accretive on new leasing , and for the non-core office you mention they can unload for $2.9bn would be curious what that does for p/affo; my guess is that at a forward 6x it’s still dilutive to take away that cash flow give how beat cap rates are right now. If I’m going at a single REIT I’ll take MAA all day and just bank on reversion if sunbelt apartment market. My$0.02 from the institutional CRE PE side.

Jumpy_Nose863

Vici is the best REIT out there. They're an even better deal rt now. Load up my friend, you'll be glad you did.

VuvuzelaSound

Thanks for your comment I appreciate the insight, some points I want to make is that it's not a pure office REIT in the traditional sense, its a laboratory REIT. Less affected by remote roles and it's distinguished from Office REITS in material metrics. For example in SF when remote roles decimated office leases, lab space maintained more than a 25% occupancy premium compared to overall office REITs, but office has since started to recover in SF. Companies absolutely need lab space, including non biotech companies that want to research advanced tech including robots. I also never said anywhere in my post that the cap rate would return to 4 anytime soon, in fact I explicitly stated that growth narrative may be stalled but there are other ways forward for the company. My main thesis is just that it is way oversold even for a non growth narrative. If they can sell 10% of their non core assets this year at $2.9 billion that places their market cap valuation back to $15 billion in terms of a more substantiated NAV, basically 2x of the current stock value. It's also certainly not an impossibility that cap rate will go down again, as well as possibly interest rates. Its incredibly hard to accurately predict macro conditions. Final point to make is the oversupply is definitely a big drag on the sentiment and price at the moment. But the occupancy rate for $ARE is quite strong relative to the overall market, they have 5-15% more occupancy in most regions over competitors and are still at 87% despite this being one of the most bearish moments of all time for lab/office REITs. Oversupply is bad but its made so much worse by the fact that the demand has been at a very low point, my bet is that the demand will recover sooner than expected, likely in the next year for biotech. And that they will also be able to pivot some buildings in both SF and SD to Advanced Technology use cases, which would require far less capex to build out and also return more NOI much faster. Also the trend seems to be tenants drifting towards cluster model rather than any random developed lab space. You are not wrong about the oversupply, here are bostons numbers since you brought them up as an example and they are also one of the most oversupplied places at the moment: **- Boston's Occupancy Rate for $ARE:** 88% **- Boston's Occupancy Rate for Lab Spaces in General:** 74% \- **Boston's $ARE oversupply:** \~ 1.68 million sqft **- Boston's total oversupply:** \~ 14.30 million sqft But here's some more concrete numbers to help illustrate some of the main points I want to make that leasing activity is not so doom and gloom: **- The top 10 biotech companies in the US** (Amgen, Gilead, Regeneron, Vertex, Moderna, etc) are likely sitting on an estimated cash reserve base of $70 billion. AI has a very good chance of actually accelerating new drug discovery and research, and create more demand for lab space and also increase VC investment in the field. \- Expected $10-15 Billion into biotech from VCs in 2026. Number looks like it will likely grow in the coming years. \- Historically every $1 million raised in venture for research results in approximately 224 sqft of leasing demand for 7-10 years \- $ARE needs about 1.83 million sqft in new leases to get back to overall 92% occupancy rate. \- 1,830,000 sqft / 224 = 8,169 aka $8.17 billion. But assuming $ARE can only capture around 35% of new leasing demand due to the fact there are other competitors then we do 8.17 billion . 0.35 = \~$23.34 billion in funding. This amount is roughly equivalent to a normal funding year for biotech from VC not including the massive cash reserves that big pharma is sitting on. Currently in the still recovering biotech bear market the number is lower (\~$10-15 billion projected in 2026 + unknown big pharma investments if I had to give an estimate it would be around $10 billion). I would be total funding in 2026 is around the $23 billion mark, and with any luck it will be much greater this year and in the coming years.

Creative_Ad_8338

☝️💯 There's a massive glut of life sciences sqft... not only this but it's going to be obsolete as the industry is transitioning to robotic labs. Cloud labs are the future. This REIT can go lower.

VuvuzelaSound

Yeah it seems utterly insane, I have seen B class office REITs with lower occupancy have 9X P/FFO and I have found no comparable REIT currently trading at 6X levels. I have only ever seen 6X levels for REITs that are actually positioned for bankruptcy whereas it seems like $ARE is in a very unlucky situation with the headwinds but will likely recover, and they have billions of dollars to survive basically indefinitely to weather the storm. People are assuming that the downtrend in lab spaces is going to be catastrophic but they seem to be confusing an emotional and fear based response to the unlucky macro conditions that are affecting occupancy with an existential threat to the business model. If occupancy rates return even just 3% the narrative will shift entirely.

terraformingforsogen

I’ve been on an REIT kick lately anyways so fuck it I’m in

VuvuzelaSound

Also a disclaimer: I am a retard or as some people on stock fourms like to call REIT-tard. I also forgot to mention that the chairman and founder bought 25,000 shares @ $53.92  in March and also stock has open $300,000,000 buyback program they have not tapped into yet since the share price was around $55

VuvuzelaSound

Also a disclaimer: I am a retard or as some people on stock fourms like to call REIT-tard. I also forgot to mention that the chairman and founder bought 25,000 shares @ $53.92  in March and also stock has open $300,000,000 buyback program they have not tapped into yet since the share price was around $55

ShadowBard0962

The audacity of you assuming that I don’t understand what I’m buying, given you know nothing about me or my overall investment strategy(s)! These CC ETF’s are just 8 of my portfolios holdings of some 37 that includes BDC’c, CEF’s, MLP’s, REIT’s and dividend growth stock. I, like most here, have made my share of investment mistakes, but I am a well-seasoned investor at this point. And my investment strategy fits MY needs, not yours. Thank you for the comment.

No_Love_Gained

I think their REIT is an equally good play for MSO expisure as they hold a large chunk of mid teir MSOs thru Vireo, Verano and few others..

dvdmovie1

"Looking to add some passive income to your portfolio in 2025?" No. I don't agree with yield chasing (imho I think anything about particular companies should be thesis first, not what it yields) and I don't think people should be income-focused unless they're older. REITs are having a better year this year but O is an example of how hivemind-y people have become on Reddit - if one looks at REIT mentions over the last 5 years on here, probably 90% of it is O; people just copying off each other and buying after they see "monthly dividend" without even researching what they own.

LLuxifyLife

Or.... do the boring thing take 75% of that put it into REIT and Dividend Bonds, and make the Dividend Bonds DRIP, this and use maybe 3-5% in a high % compounding hourly interest 15-20% crypto account with no lock up time line and now your sitting on boring but working money and u can still take 25% or less and see if you are jusf a fluke win or if your able to control yourself and on take plays which stats and probs say will go in your favor. This strat isnt about the inevitable lose, dont listen to them. If that was true institutions would be losing they dont. So you can try balancing the boring but working money in a completely different accounts portfolio and making slow compounding money on the backend, and high probability plays with the 25% you keep in options.

ATPsynthase12

No way not with QQQ as volatile as it is. If OP is over 60, I’d say do 40% VTI, 60% bonds or the inverse of that and maybe sprinkle in some REIT for dividends.

Mathberis

Why would you hold bonds and REIT if you're bellow 70 ? It's just a drag on your portfolio.

ATPsynthase12

I ran some benchmarks and I think I’m gonna update my portfolio to this: VTI 50% VXUS 25% BND 10% VGT 15% When compared to the benchmark of Berkshire Hathaway over the last 3 years it has had a Sharpe of 1.12 compared to BRK’s .66 and a CAGR of 18.5% compared to BRK’s 14%. It also has a Sortino ratio of 2.03 compared to BRK’s 1.06 and a Calmar Ratio of 1.81 to BRK’s 1.4. So it seems to outperform BRK.A in nearly every metric from a risk to growth perspective. I noticed my REIT percentage was pulling down growth and I don’t need high dividend payout at this stage and I don’t like the tax drag so I’m dumping this as well as QQQ. I’m also dropping BND to 10% which exposes me to more risk from tech exposure but also lets me have more growth over the long term.

ATPsynthase12

Everywhere I saw it recommended it was treated as if it was a tech fund. I might sell QQQ and swap to VGT though after some research. Any thoughts on REIT? When I run benchmark testing, the portfolio appears to grow better without it

Forecydian

REIT ETF , small cap value , international

ATPsynthase12

So I am currently getting into investing and learning the basics but would appreciate some input on my current portfolio distribution. The goal is long-term sustained growth over 30 years or so with a “buy and hold” mentality. I like the Bogleheads mentality, but got a 3 day ban from their sub for even mentioning investing in QQQ. Currently my distribution is based on a standard 3 fund portfolio with tilts in tech and real estate because I think those markets will continue to improve over the next 30 years. My distribution is: 40% VTI 20% VTXUS 20% BND 10% VNQ (REIT) 10% QQQ Any input or changes you’d recommend? I’m aware the REITs aren’t the most efficient in a taxable brokerage, but with my income tax bracket, it would be negligible bump. I like them as an inflation hedge and the extra investable income via dividends. If I were to cut something, I’d sell my. Shares here and move it to VTXUS for more foreign market involvement. I am also aware that tech and QQQ is volatile in the market, however, I do not think we are going to see tech become less of an integral part of our society or economy especially with the rise of AI. It seems silly to not tilt your portfolio to tech a little given that we are closer to colonizing the moon than going back to analog clocks and dialup i

ATPsynthase12

So I am currently getting into investing and learning the basics but would appreciate some input on my current portfolio distribution. The goal is long-term sustained growth over 30 years or so with a “buy and hold” mentality. I like the Bogleheads mentality, but got a 3 day ban from their sub for even mentioning investing in QQQ. Currently my distribution is based on a standard 3 fund portfolio with tilts in tech and real estate because I think those markets will continue to improve over the next 30 years. My distribution is: 40% VTI 20% VTXUS 20% BND 10% VNQ (REIT) 10% QQQ Any input or changes you’d recommend? I’m aware the REITs aren’t the most efficient in a taxable brokerage, but with my income tax bracket, it would be negligible bump. I like them as an inflation hedge and the extra investable income via dividends. If I were to cut something, I’d sell my. Shares here and move it to VTXUS for more foreign market involvement. I am also aware that tech and QQQ is volatile in the market, however, I do not think we are going to see tech become less of an integral part of our society or economy especially with the rise of AI. It seems silly to not tilt your portfolio to tech a little given that we are closer to colonizing the moon than going back to analog clocks and dialup internet.

twenty_three_three

I'm not sure if this is satire, but if not, fuck you. A retiree sitting around doing nothing but scalp off people needing a roof over their heads. If karma hits, maybe you'll end up in some overpriced REIT owned apartment losing all your savings. Sorry, not sorry, that the risk you took didn't go your way. Brings up an interesting point about the intersection of housing and investment.

fallingdowndizzyvr

That would matter if that's what we have been talking about. It isn't. It's this. "Gold. **Real estate.** Farmland. International equities (but there's nuance there). " -- you "Still, a house is a house is a house." -- you "equities get hit much harder than real estate or REITs" -- you We are talking about real estate AKA a house. Not about a REIT. Which by the way is an equity. The thing you were saying that real estate(a house) was better than for preserving wealth during a downturn.

dr_eh

Well rent is what matters when you invest in an REIT

MomentSpecialist2020

Yes, hold REIT’s in a IRA or other tax advantaged account for best returns.

baseball_fanatic0887

I put 50k down payment on my 500k rental. The rent I take in covers mortgage/taxes/maintenance. It doesn't pay me any return other than principal payments to the mortgage. The property can very well go down in value, but as long as rent carries it, over time it should go up. Even if in 25 years the property is only worth what I paid, I have 50k in. 50K in the REIT, without further investments, would be worth around 300K in 25 years.

Ok_Distribution6386

You’re absolutely right — rental returns are often overstated, and the time and effort involved are seriously underestimated. That part is spot on. But on the REIT side, it’s not entirely “stress-free” either. When interest rates rise, REITs can come under significant pressure, since they compete with bonds and their financing costs increase. Liquidity is a clear advantage, but it also means prices are constantly repriced by the market — you can sell tomorrow, sure, but not necessarily at a favorable level. Not all REITs are equal either; risk varies a lot depending on the segment (office, retail, logistics), and management decisions directly impact performance. Add leverage and dividend sustainability into the mix, and “passive” starts to look more like a transfer of control rather than a reduction of risk. In short, the effort goes down, but the risk doesn’t disappear — it just takes a different form.

Careful-One5190

People tend to grossly overestimate the return on rental properties, and grossly underestimate how much time and effort there is in being a landlord and property owner. The yield on my REIT income is about 7%. Hassle-free, completely passive, reliable income, and on top of that they're very liquid assets and could be sold tomorrow, easily. That's the way to make money in real estate.

Sudden_Debt_Overbuy_

It's a race between fat dividend yields and secondary dilutions slamming the stock price. Search "decaying REIT" to learn more!

Orange-Bubblie

I don't think investing in real estate is a good thing. Maybe rental markets, REIT...

D_Pablo67

Here are three Dividend Aristocrats with high yields: Realty Income (O), REIT paying monthly dividend. Federal Realty Investment Trust (FRT), REIT paying a quarterly dividend. Enterprise Products (EPD), a pipeline MLP that pays quarterly dividends.

Chitown_mountain_boy

lol. The US invented REITs. The REIT Act was signed into law in 1960.