REIT

__redruM

There’s an ETF for everything, including REIT. Look at performance though. They’ve been in decline and the housing market is slowing with interest rates. If you really want something diversified, a small allocation of SGOV isn’t the end of the world. Just make sure and rebalance on highs and lows. 15% right now with an ATH would work. Then if the bubble pops and it becomes 20%, rebalance back to 15% to grab some cheap stocks.

Ap3X_GunT3R

REITs are the perfect one stop shop for rental income exposure if you agree that’s a viable inclusion for your portfolio. Accessible on virtually every trading platform. Unless you’re looking at real estate exposure in a specific area or region, then a fractional ownership platform will almost certainly charge you more fees than a generic REIT and be more confusing come tax time. (Also, your index funds almost certainly provide this type of exposure already)

Form1040

Just buy a REIT if you want some real estate exposure. 

Mysterious_Phone_986

your financial advisor is basically telling you to complicate your portfolio for no good reason. index funds already give you real estate exposure through REITs, and those are way more liquid than any fractional platform. these platforms make their money by locking you in, the "sell whenever" crowd probably means "sell whenever there happens to be a buyer on their internal marketplace" which is not the same thing. if you want more real estate tilt, just buy a REIT etf and call it a day

greytoc

It's not the same thing. And are you referring to AB-Lend? AB-Lend is a separate BDC entity where AB provides management services. AB makes money from manageement fees and acts like an external manager as described by u/MrBotANot 's comment in this thread. AB-Lend is pretty new and looks to probably generate about 2-4MM in revenue for AB. That's a small fraction of the 4-5Bn in annual revenue generated by AB. Look at it a different way - would you consider McDonald's a real estate company and consider it the same as a REIT because McDonald's derives 30% of their revenue from real estate holdings? If OP asked about an investment into a diversified REIT like O - would you consider MCD an equivalent investment?

Not_FinancialAdvice

> Just another scam by Eddie Lampert because he wanted to absorb their real-estate portfolio. This right here; turning SHD into a big REIT

ParevArev

Calls on a REIT and LULU holy hell

HistorianAntique7570

If you’re starting from zero I’d keep it simple: put a few thousand into a low‑cost, diversified dividend ETF (SCHD, VIG, or even a total market ETF with a decent dividend 3‑4 %) and use the DRIP to compound. Re‑invest everything until you’re closer to $50‑$80k; that’s roughly a 12‑year game at 3‑4 % yield. Once you hit that range you can start pulling a small portion out—maybe 10‑20 %—into a higher‑yield vehicle like a covered‑call ETF (JEPI or JEPQ) or a quality REIT, which can boost your effective yield to 4‑5 % without shaking the growth core. Keep the bulk of the portfolio in growth‑oriented holdings so you’re protected against inflation, and only add the income tier once you’re comfortable with the principal size. That way you avoid chasing “high‑yield traps” and still meet the $500/mo goal over time.

GPUssydestroyer

Somalian Daycare REIT

novavalue

You can always try REIT stocks like Annally or Invesco which have pretty high monthly paid dividends. Stock price is usually flat, but a high pay way to create dividend income. However, you might get better value from investing in growth stocks

Effective_End8731

I try to put in 10% of my paycheck each paycheck or set it aside for the month. I spread it out between 60% Domestic, 30% International, and a tiny 5% REIT and 5% commodities pocket. inside that domestic I split amongst the S&P 500 and Russell 2000 then keep a small stake in VTI which puts me heavily enough in the top end tech that I want to be in, but its a slight concentration risk I am very aware of. When you are diversifying you need to know what you are diversifying against. I hold BTC which is very unpopular around these parts. It's not a sizeable portion and it is strictly if something dire happens in the U.S. and dollars collapse as the world currency. If the world standard moved from dollars, I wholly expect the internal dollar valuation to follow hyper inflation into the ground. This is a very very very unlikely scenario - but if it ever did come to pass, I have something I could cash out in another currency that isn't dollars and start over in a new country. Actual real estate to me is more about cash flow than long term investment growth. The risk isn't any safer than equities in most cases because there are so many variables around keeping it profitable. You'll rarely double your money over a 7-10 year horizon, but the market does that fairly consistently with the right balanced ETF plays. So simply ask yourself why you are diversifying. If you want to see growth, then diversify amongst different types of growth assets and if you want to reduce risk - balance it with a small subset of assets that move opposite of your growth assets. Crowdfunding and crypto definitely don't make equities safer - you are just mixing different kinds of high risk together with your high risk equities. Mix your risk types but also your risk levels - Treasuries, Bonds, and Tax-Exempt securities are generally very safe so if you are trying to make it safer, you need to go to lower risk levels, not different types of high risk. Hope this helps!

CurrentAirline9065

The damage on the balance sheets of REIT's and Life insurance companies

SteakEater137

I think whats happening is that these companies that **issue** the mortgages/bonds at a floating rate are getting lumped into the rest of the sector that would have to pay more on their bonds, just based on their sector. Just being classified as a REIT or involved with real estate gives you the kiss of death But...thats so retarded, surely the market wouldnt make that simple backwards mistake?

PomegranatePlus6526

Check out the triumverate. NNN, MAIN, and EPD. Three dividend stocks that all yield more than 6%, and have raised dividends for more than 15 years straight, and all three average increasing the dividend by 4.6% CAGR. One is a REIT, one a BDC, and one an MLP. All different sectors, and all pay me very nicely every month or quarter, and pay me more year over year even if I never buy another share. Never have to sell shares.

Over-Computer-6464

REIT dividends typically are 199A dividends taxed at 80% of your ordinary tax rate due to the QBI deduction. So not as good as qualified dividends, but nit as bad as interest or ordinary dividends that are neither qualified nor 199A dividends.

SteakEater137

Some of these REIT valuations are getting absurd. I know they move inversely with bonds but at this point it seems like a major overreaction.

Accidental-Genius

You understand that MCD could stop selling food entirely and still be a multi-billion dollar REIT, right? McDonald’s is a REIT that happens to sell shitty food. They own the land their stores are built on, that’s their actual business.

RickDick-246

And if you want to go direct into real estate rather than buying into a REIT just find a good syndication group. When my portfolio got large enough to justify this level of diversification I just made some initial investments with a syndication group. We’ll see if it really was worth the liquidity freeze but it is a decent way to add leverage to your portfolio.

tonufan

Would rather bet on something like VICI, a REIT. Pays almost 8% dividend and dropped nearly 30% from ATH in the past year. It holds casino properties, 40 year triple net leases.

seasonofillusions

I know this space very well. These are NOT regular REITs. These are “mortgage REITs” (mREITs) and the only thing they share with REITs is how they are taxed. The income they generate is anything but steady. They are highly leveraged, so when credit spreads widen they tend to realize big losses. This, along with their inability to retain earnings (to maintain REIT status) and general costs of running the company leads to NAV erosion over time. I can talk a lot more about them but tldr, stay away. There are periods of time they produce good returns but you really need to know what you’re doing in this specific space. I’m sorry to say you don’t. I’m happy to answer questions though.

RevolutionaryPhoto24

This one’s an investment, actually. Which is neat, as it’s the first new one in ages. (May buy into MCD next year, depending on rates and how it behaves. That would become my REIT, LVHM my consumer staple, and BRKB my ETF/MF as ballast for my volatility trades and venture fund.

sharp315

Avoid real estate at all costs unless either of you have a very solid background in dealing with it. Real estate is not an investment - it is an industry. If you want real estate exposure just invest in a REIT ETF. As for your investment allocation it depends on your tax status and whether the additional contributions to a 401k are still beneficial to your taxable AGI. If yes then you should still maximize 401k contributions for both you and your spouse. At 52 you are in the 'catch-up' period so you can contribute above the standard 401k limit each year. If the 401k contributions are not beneficial to your taxable AGI then you should allocate to a Roth IRA and benefit from the tax-free earnings growth. I don't know your mortgage rate but if it is under 5% there is little incentive to pay it off early. If it's 3% or 4% then you should stop making extra payments altogether as that is a complete waste of capital when the market is returning 4x - 8x that rate. Simply invest in a taxable brokerage and use the earnings to make your monthly mortgage payments. Your portfolio will still increase even with the payment withdrawals.

daygo449

If it were me, I would still max out your 401K and Roth IRA’s/IRA’s. I think you said you were close to doing that, and I would. It looks like you are are. That way you continue to put in the work with compound interest for what you have today. After that, whatever you have leftover, I’d start to look at what other things you can invest it. I’m not sure what you guys mean by real estate. If it’s actual houses or property, and you don’t feel comfortable with that, maybe look at some REIT’s or something like that to invest in. It’s still real estate, but not something crazy. I saw you have a 529, so I know you have kids. I just heard something or talked to someone who had a parent buy a house and rented it out until their kid(s) were old enough to move into it. It was by a college their kids wanted to go to, so they bought something before hand, had it through them going to college, and they then had the option to sell it or keep it. It saved the parent’s money and allows it to gain equity. That might be something you might want to consider as an option. Outside of that, I’d look at BitCoin. I wouldn’t dump everything into it, but crypto currency is here to stay. I’d maybe take a portion and put it there. Another option for you guys is looking into buying into some businesses. It’s a good way to use that money to diversify. Some of them can contribute with a ton of cash flow too.

ZealousidealSector19

Tost and a REIT

jatoba22

I'm aware that book is very volatile for RE right now, however go back and get your choice of REIT NAV. Run forward NAV/ share vs unit price and you'll see a growing gap between the two, while cap rates remain pretty consistent.  if NAV is really being over reported then cap rates would crater, of it's under it would shoot up. CAPREIT (I'm Canadian, drown me in Maple syrup) gap in 2021 was 30 cents price to NAV, it is now 19 dollars per share. Even a swing of 50bps would only explain half of that. I'm not a lover of REIT but this entry price makes me want to apply for a chinese citizenship 

hak8or

>this is not how it works.  I know this isn't the bogglehead community but... Right back at you? VT is a diversification play, and it's one of (if not the) most tried and true method for long term appreciation. Just because a company is at the top in terms of market cap doesn't mean they are most successful or will remain the most successful in the intermediate term. Look at what happened to Japan or even companies like Cisco during the dot Com bubble. VT includes emerging market and developed markets and everything, it's one of the most diversified single investments you can make, heck or even includes real estate via REIT's.

tripstermcgee808

A REIT investment project during my masters in 2023 was on IRM, basically picked it at random cause I couldn’t find anything I liked. Ended up diving DEEP. Holy shit man. Crazy unique value proposition. The way they got the IRS to view their racking assets as property so they could convert to REIT, their legacy storage cash cow, dumb as shit growth and data center play, the stretch for vertical integration from physical to digital. Bonkers, stupid, total insanity. But the numbers didn’t lie. My partner and I correctly forecasted when it was trading at $70 something that it was undervalued, and should be trading around $80 in a few months, and $100+ within two years. That came true, and when the class presented reports to a mid-size firm they stopped us and said they were delighted someone was looking at it because it was on their radar the past year. That was then. I still own a healthy position in my retirement account, but I’m not adding to it. It’s been a while since I calculated FFO premiums 😂. Probably dog shit based on what I remember if they didn’t execute per their 5 year plan. I still love that company, even if it goes to zero.

Business-Evening-816

I'm not clear on your note alongside the real estate/REIT item. You note they perform poorly during rising inflation, which seems counter to inclusion in the list. I've also heard that real estate tends to have durable ability to pass along costs in the longer term, which perhaps is why you listed it?

IronyElSupremo

Goal wise there’s an idea of keeping roughly 5 years of total expenses in “cash” including money mkts and CDs, and/or bonds. Bond funds are a bit different, though now there’s TIPs (actual or target date). The safer recommendation was for the glide path or 60/40. The Great Depression and accompanying stock market crash of 1929 still stung when the stock/bond glide path was thought up as a history lesson. In fact some European investors parking some money into high quality bonds for overall portfolio safety was noticed by American investors much more heavily invested in that stock mkt %-wise. Also rates were higher which meant the 60/40 was pretty optimized until the early ‘00s. Still a little over a decade, EXCEPT 2022 when rates went up … and the present, the 60/40 hasn’t done all that bad usually coming in #4 or # 5 place vs 100% in a major stock or REIT index (also 100% foreign bonds) in terms of what worked in a particular year. Source: one of these matrixes comparing indexes for a year = the S&P 500 vs. their completion index (of mid-, small-caps) vs. AGG for US investment grade bonds vs. the FTSE NREIT for REITs since ‘71, etc... .. I’ll try to find a source. Some form of 60/40 shouldn’t be overlooked and even an 80/20 would have ridden through the financial crisis of 2007-2008.

RedditLeagueAccount

I'd normally save invest. It has more returns than the interest rate. Better math. However, right now is a grey area. Personally, I am currently timing the market which is normally something you shouldn't do. I expect a market crash because I believe that while AI is the future, we are currently in an AI bubble. The pieces are not in place to support AI and their current offerings and benefits primarily lead to less employment even if they succeed so its a no win situation IMO. Never bonds. Real estate is a path to wealth but people often do not fully consider the risks. You say you already own properties so you are already aware of the risks. I don't find it worth the hassle. A bad tenant. Or something like covid where they force you to let people stay for free is concerning. Plus, if young people are lucky, there will also be a major housing crash. Median house buying age is above 55 now... So that boils down to either stocks, or paying the primary off. You didn't mention your age. If you are 50+, I'd do a defense stock like SCHD or I guess it you are a firm believer in real estate, you could get a REIT. If you are younger, who cares if there is a stock market crash. It'll recover by retirement time so the math would be better than paying off the house anyway. You could also DCA into the market. If it crashes, change strategies to pay it off now. But honestly, even then, that's when stocks are discounted. Greed keeps telling me stocks unless retiring soon. The interest rate is low enough that both normal and defense stocks beats the 6% in returns.

Southern_Roll_7035

Chiron (XRN) is a play in the space with a much more reasonable valuation. They are making a strategic pivot from when they were called Global Medical REIT and were invested in medical office buildings. There is, of course, execution risk if the transformation doesn't go well, but it avoids the (IMHO) excessive valuation of Welltower.

Rishodi

Welltower is a REIT. P/E is not useful for REITs; look at FFO/AFFO instead. That being said, those numbers also indicate a substantial overvaluation relative to industry averages.

HeyYoChill

That chart for a REIT is bananas. The price chart follows the TTM revenue chart, but EPS is actually negative over 10 years.

FoolishColossus

VMQ should be VNQ for the Vanguard REIT ETF.

Sweaty_Platypus69

Costco should lease their parking lot - and make it into an REIT or something.. just tolling a buck or 2 - watch that reit stock rocket like Sndk (scam dick)

horseman5K

Good news, you’re getting monthly income and growth with equities too. Maybe buy a REIT if you feel you need more exposure to real estate for some reason. Think of it this way- would you go out right now and take out a loan to buy $700k in stock of a single company? No? Then you probably shouldn’t do it with a single property either. There are a lot of places where things just don’t work right now given where interest rates and the market are. There’s a reason why homebuilder stocks are down yoy while basically everything else is positive.

RJ5R

A tradable REIT fund with a ticker is super easy, trades like a stock. I am referring to the types of funds that OP was asking about. Many of these types of funds will charge you fees if you try to take your money out before the required timeframe

Dr_Colossus

Never heard of a REIT that's hard to take your money out.

Paperback_Chef

With only $10, OP would likely be getting a public REIT like O, and avoid the illiquidity problem you're describing.

Paperback_Chef

They pay relatively high dividends, which is only possible if the REIT itself keeps/realizes the appreciation vs. passing that directly on to investors. Alternatively, if a REIT's properties are depreciating, it won't be around long - they'll fail to meet lender requirements on existing debt and have to sell properties to pay debt on other properties, which creates a spiral toward closure.

ClearOutWest

I tried this with Arrived. I put about $6,000 into small positions across 18 properties, split between their long and short term rentals, and let it sit for 4 years. TLDR: I am working to get what money is left out to pay off some debt instead. Between unrented time, evictions, and renter churn I "made" about $500 in dividends on my $6000 over those years. Ultimately poor liquidity means I will walk away with less to get my money back. Would have just been better off sticking with QQQ or a direct REIT if you really want RE exposure.

Dr_Colossus

Sure, but also he's asking about real estate investments. REIT is the way for lazy exposure. So many people I know have bought investment properties and regretted it later and sold losing money. They would have been better off just buying a REIT.

TheMagarity

Have you considered shares in a REIT?

Dr_Colossus

Just buy a REIT stock if you want real estate exposure.

EmbarrassedPart1256

Jumping around like crazy, good look! The fundamentals look pretty poor & it's a REIT that doesn't even pay a dividend, holding retail space. Now what could that retail space become in the future? Data centers??

Scott7894

What could go wrong? I remember back in the late 80’s early 90’s when they allowed private REIT’S to Main Street. That ended well

dpatel211

I’m trying to move my money away from REIT ETFs, any suggestions?

lmneozoo

Hey there brother! I sold 400 shares at $90 I sold NVDA Jan 2020 and invested the proceeds in a mall REIT Hindsight is 20:20. Don't it gape dat bussy

Brawldud

I mean sorry but if I suddenly inherit a bunch of land I am going to sell it too. Owning land is owning homework. If you gave me $10M of property now I'd park that shit in a dividend ETF or an REIT and I'd be making $300k annually plus capital gains with zero effort.

MammothVegetable7608

I invested around 70% of my money in a custom portfolio of REITS, which for around 10 years wasn't bad, until COVID hit. Needless to say I paid a lot in painful "school fees" to learn the proper application of portfolio diversification and risk management. Also given my personal circumstances the REIT route wasn't tax efficient so I ended up paying way more in tax than I should have. Since then I have read widely on asset allocation and watched lectures on Youtube which has helped a lot in setting up a portfolio that does what its supposed to do whilst minimising risk. REITS as an asset class isn't necessarily bad but too much exposure to a single industry is. Every investment has a specific job to do in a portfolio and knowing how to combine them to suit your specific circumstances is the trick.

ReasonableBrother448

I think you are either robot or fixated of finding perma bears on the forum. I am not predicting a crash, quite the opposite. Trump will never allow markets to crash, he will eat human babies alive on TV show if it will help. Situation is very simple. If bond yields go up the circular never before seen debt driven AI bubble collapses overnight, because it will force EVERY asset on this planet to seek higher returns. It would also affect assets which are connected to yields, say REIT, Dividend stocks etc. They would not crash, but simply correct. Better yield on bonds = better yield on risk assets (= stock prices deflate) The way markets are attempting to price yields would lead to natural de-risking and small correction. I could even argue it would lead to bond markets to retrace and revert. It would force FED to hike and things like that, to control the inflation. Market WANTS to see effective inflation control attempt, it is irrelevant whether there actually is one. But i agree with you that anything Bessent does is short term. That is the MO right now, short term gains, long term pains.

Money-Effective7189

Outside of my normal portfolio, here are some things I participate in as alternative investments. Private credit Private loans/debt Preferred equity investments sec-qualified corporate debt (fixed-income corporate bonds Fractional real estate investing Micro Investing in commercial real estate via a REIT These are Private, can be iliuquid, but I havn't had an issue selling or get quarterly div and if they sell a property/asset my account re ieves growth and original investment back. These are those investments that are good because they are outside of the market, but could be difficult.

FillMySoupDumpling

Yikes exactly. People don’t read - even when making investments unfortunately. I don’t really get into the details myself in the basic funds I’m invested in, but before investing in this REIT I definitely looked over all the documentation including financial statements and more. 

BitteHelfenMirDoch

REITs and REIT preferred pay well.

FillMySoupDumpling

Yes. I am an “accredited investor” and have a small portion of my assets in a private REIT. It’s managed by a company I know well in an area I have sufficient experience in that I feel comfortable with it. It pays consistent dividends.  This investment really isn’t something you’re “missing”, though. I figured it was a way to somewhat have real estate related exposure beyond my basic market investments.

Apprehensive-Mine364

God is good, my $AA is going back up to being less of a loss. Now I just need that shit to hit PUMP harder so I can go into REIT.

DeeDee_Z

> DOES INVESTING HAVE ANY RISKS? Pages and pages of them. Every time some people invest money in «something», and lose some of that money, they sue someone. Their argument is always, *"Nobody told me..."* And therefore, the next Prospectus that comes out for that company, or that fund, or that whatever, has another couple pages describing that particular risk. Last time I invested in an unlisted REIT -- how they all start, BTW -- the Prospectus had **seventeen pages** describing every conceivable risk that I might be exposed to. The goal isn't to scare you off, though; rather, it's to prevent the next lawsuit. Because, you understand, risk and reward are correlated. ---- And if you'd like to be taken a little more seriously by the adults here, try to put all that "Middle School text-speak" behind you. Use complete sentences. Try proper punctuation. It will make you look more "grown-up".

Pie_Dealer_co

With your 25 years of experience can you explain this? Real inflation is around 20% last half a decade if not more. SPY 500 and similar move around 30% last couple of years every year. Then you can even get stocks that moved 60+% no issue the last 5 years. Not making it hard saying X jumped 100% then jumped to Y it made 60% and so on. I have picked a nice flat stock it moves up 5% every year so we beat inflation but growth is lacking. Lets say its a utility or REIT. I sell CC for 2 years and never get assigned. Then we do the math... I made less than just putting it in SPY 500

_galaga_

Cool info, thanks, I’ve recently been wrapping my head around REIT return of capital and at first it seemed like cheating but I get that the tax benefit isn’t permanent and you eventually pay taxes once the basis has been fully returned. A good tool to have in the chest, tho.

laurenthu

Yeah, managed futures is the one I'd single out of that whole list too. Most of those articles bury it, and I get why. Hard thing to sell. But it's about the only item there that actually went up in 2008 and again in 2022 while stocks fell, because it can go short instead of just holding less of everything. Gold is a different animal. I like it, but more as an inflation and currency hedge than a crash hedge, and it doesn't reliably move against equities. A lot of the REIT / private credit / non-traded stuff is really just equity or credit risk in a different wrapper. It looks uncorrelated mostly because nobody marks it to market daily, which is the lockup trap... the gate hides the correlation, and a crash is exactly when you'd want to rebalance and can't. Your 10-20% range feels about right. Under ~10% barely moves the whole portfolio in my experience, and you usually need to get up toward 20% of a real diversifier before the drawdown curve even changes shape. Liquid managed futures you can actually trade does most of that work. Probably the best bang for the least headache...

friedbymoonlight

Let’s gooooooo Lesser Omaha Retail Mall REIT!

Sensitive-Village735

I am 23Y/O and currently have around $48,000 invested pretty randomly in random ETFs and stocks across a few different apps and I am in the process of selling and streamlining into 1 app. Around 15,000$ of that is in a lifetime ISA (I am in the UK, this is an account where the government contribute 25% of your contributions and can only be used for the purchase of a house) The remaining amount 33k$ I am looking to move into a trading212 S&S ISA This is the current allocation I have decided on however I am debating whether to simplify it even further and would like some advice on whether that would be the move. The reason why it is so complicated is because I’m worried about the current tech/ai ‘bubble’ and am trying to protect myself from losing to much when it potentially does pop. It is as follows: 55% Vanguard S&P 500 UCITS ETF (USD) Accumulating 20% Vanguard FTSE All-World UCITS ETF (USD) Accumulating 10% Your REIT Pie 5 individual REITs below 15% Vanguard Global Aggregate Bond UCITS ETF GBP Hedged Accumulating Allocation within REIT Pie Effective portfolio allocation Realty Income Corporation 20% VICI Properties Inc. 20% Prologis, Inc. 20% Digital Realty Trust, Inc. 20% Ventas, Inc. 20% I understand there is a lot of overlap with the S&P and the FTSE all world, but would this really be a problem if the only thing I would replace it with would be more S&P in the first place?

TheoryInttro

Yes. Combining the worst features of REIT, rental and Capex into one company.

9mac

I've actually been loading up on farmland recently via the Gladstone LAND REIT. Interest rates play a large role in price movements, but producing healthy fresh food and strong monthly dividends have attracted me to the play.

Successful_Car1670

Tbf dc was never a “growth” stock but treated like a REIT

Educational_Ant_184

I dont blame you for thinking that, I think everyone will be increasingly fucked as time goes on. That being said, you have just about the largest time horizon of anyone investing. At your age, you can experience a "lost decade" or two and still make money before you retire on even the worst timing of specific buy-ins. Primarily you should be in investing in broad market ETFs, and those will be safe on your investing horizon. The fun gambles are better played somewhere else than your retirement accounts. Here is where I will be controversial. I dont recommend it now for the reasons you're saying, but if there is a large crash, I'd probably some time after go into a leveraged market ETF, in my case TQQQ, which is 3x, but ive read 2x is kind of the golden ratio, so maybe cut it with some non leverage to hit that exposure. Also, dividends are controversial. I invest in RITM, a REIT, which returns 10% per year, and DRIP the proceeds(two acronyms you should become familiar with, i.e. google them and there you go, simple but possibly important). I was losing money and afraid to invest in like 2022, but that dividend and reinvestment would have been nice to have at that time. Most people will say dividends are a waste and thats better pivoted to towards retirement, but I think its a nice hedge and something that can be nicely accrued slowly over time

ptexpat

# CareTrust REIT Announces Second Quarter 2026 Operating Results; Increases 2026 Guidance Thu, August 6, 2026 at 1:20 PM PDT  **Conference Call Scheduled for Friday, August 7, 2026 at 11:00 am ET** **DANA POINT, Calif., August 06, 2026**\--([BUSINESS WIRE](https://www.businesswire.com/))--CareTrust REIT, Inc. (NYSE:CTRE) today reported operating results for the quarter ended June 30, 2026, as well as other recent events. For the quarter, CareTrust reported: * Net income of $89.0 million and net income per diluted weighted average share of $0.38, an increase of $0.03, or 9%, over the prior year quarter; * Normalized FFO of $119.7 million and Normalized FFO per diluted weighted average share of $0.51, an increase of $0.08, or 19%, over the prior year quarter; * Normalized FAD of $118.5 million and Normalized FAD per diluted weighted average share of $0.51, an increase of $0.08, or 19%, over the prior year quarter; * $899.6 million of investment activity closed at a blended stabilized yield of 8.9%; * $578.2 million of gross proceeds from a forward equity offering, which remain unsettled; * $363.6 million of gross proceeds from settlement of equity forward contracts under the ATM Program; * Net Debt to Annualized Normalized Run Rate EBITDA of 1.01x; * 100.0% collection of contractual rent and interest; and * A quarterly dividend of $0.39 per share, representing a payout ratio of approximately 76% of Normalized FAD. ***Increased 2026 Guidance*** The Company provided updated guidance for 2026, projecting net income attributable to CareTrust of approximately $1.53 to $1.56 per share, Normalized FFO of approximately $2.03 to $2.06 per share, and Normalized FAD of approximately $2.01 to $2.04 per share. Mr. Bunker commented, "The midpoints of our new Normalized FFO and Normalized FAD guidance represent increases of 16.2% and 15.1%, respectively, over 2025 results. Our liquidity and capital access remain in great shape, giving us the flexibility to keep funding investments at our current pace. Between a balance sheet built for optionality and deep relationships across capital markets, we have real competitive advantages that provide runway to keep pursuing external growth aggressively."

dpatel211

REIT ETFs are a scam

greytoc

That's a really weird structure if it's equity. Equity means you have shares of the investment company. What is decision making mean? Are the decisions binding or advisory? Advisory means nothing. If the investment company is structured as a REIT - I think it's very unusual to have shareholders sign a personal guarantee. Regardless - afaik - an LLC doesn't protect your personal assets if there is a personal guarantee on a loan and there is a default. And I'm not aware of a way around that - since that defeats the concept of a bank asking for guarantors on the loan.

slowlybecomingsane

Because it takes a couple of years to build the data centers out and it's incredibly capital intensive, requiring large debt. By 2028 these data center companies will be boring REIT like companies, earning billions of 90% margin rental income and paying their debts down. And yes, the demand for compute is only going up so far. The deals these DC companies are getting for their power are improving year on year

JahMusicMan

I have it summarize all my accounts (IRAs, Roth, Brokerages) plus give general inheritance advice and have it give me an overall analysis however I prompt it to tell me the hard facts and not sugar coat anything. I did one big change to my Fidelity account, I was keeping money on hand in SPAXX instead of FDLXX which is exempt from CA state income taxes so I'm saving like $400 in state taxes. I also reduced my REIT exposure since I unfortunately inherited a house (unfortunately because a parent passed) and increased my small cap value percentage and bond percentage because of an incoming inheritance. I'm using Claude with a project specifically prompted with my complex situation with inheritance. Should I get a fee based advisor and an estate CPA? Probably. lol

vandalizethethief

No, it’s worse bc with memory stocks you can wait for the next cycle but with NBIS you’ll end up with a bunch of half built data centers, broken contracts & GPUs that have depreciated w/o the benefits of REIT classification. It’ll make a Tesla Cybertruck just driven off the lot look like a sound investment. Meanwhile Meta and Tesla loaning out compute bc they are losing the AI race or winning (depends how you look at it) plus all these smaller data center owners including REITs like DLR and EQIX are actually recording real record profits and revenue this quarter. I know bc I own DLR and EQIX and although they are only up 23% and 35% YTD, respectively I know they will still be here after tge hype is gone. Ive been seeing these big 20% spikes in after hours earnings and it’s some small cap datacenter owner absolutely crushing estimates and guidance. Now, not in this future AI paradise.

EmbarrassedPart1256

It's not a penny stock, but, it gives me serious $GME vibes... Bought $WU all the way down to $6.30, missed the $6.29s, $6.28s, & $6.27s dammit; someone else can have them. I'm at 800 shares for now, average considerably lower than yesterday's close; today seemed like a good buying day. I may add more to the position over time but I'll definitely be more conservative. I think I've played this one well so far around the ER; get a starter position going & then add in heavily since it dipped so hard. Looks like most of he dividends won't count as qualified dividends this time around but I'll definitely get them qualified the next time around... We're talking a cash cow of a business with a stable dividend whose yield only gets better as the price drops. This isn't a shitty REIT or something; its freaking Western Union... 

Character_Ad_1485

The 30-year is the right thing to be watching. The Fed controls the short end but the long end reflects what the market thinks about growth, inflation, and the supply of Treasuries over the next few decades. Right now all three of those are pointing up, and one 25bp move from the Fed barely registers against that. The mortgage market is probably the clearest place to see this play out. Rates are already making new home purchases nearly impossible for a lot of buyers and refi volume is dead. That affects housing starts, which affects lumber, appliances, everything downstream. That transmission doesn't need September's meeting to happen, it's already happening. On banks you're right to be uncertain. Net interest margin expands on a steeper curve in theory but it depends heavily on deposit beta and loan quality. Regional banks with commercial real estate exposure are the ones I'd watch most closely. Office CRE refinancing into a 5%+ environment is a real problem that hasn't fully shown up in earnings yet. REITs are more straightforward. When risk-free rates are at 5.23% the yield premium you need to hold a REIT compresses the valuations pretty mechanically. The ones with floating rate debt and near-term refinancing needs are in the tightest spot.

zonk84

I say this as someone who - years ago, made a mistake investing in Fundrise... Naive "What's the best way to diversify into real estate?" on my part -- and all the pretty pictures are confidant blurbs sealed the deal. First, the expense ratio is ridiculously high. Again, I was naive -- I very much (thought) I understood and watched expense ratios but figured the high expense ratio was just the price of admission to a closed/private fund (yes and no, really). Second, read the TOS -- again, silly naive me -- I failed to grasp the lockdown exceptions. Again, thought it was just a natural part of a private fund (again, yes and no!) "Fortunately" - I only gave it 2 years and was able to exit and just realize a fairly small loss (i.e., silver lining - taking the loss on taxes). I don't mean to trash them, but I'm just saying... Today me would go back \~5 years and say "No, bad idea." I've since gone REIT --- I like O/Realty Income quite a bit. I've also nibbled into some broader "REIT ETFs" (Fidelity's FREL, for example) and also some niche REITs (STAG, though I don't know I'd recommend that one).

SnooComics5459

it won't matter .. real estate is also represented as REIT tickers which will be subject to dip buying.

zonk84

I'm 52 and I think I can hit my number somewhere in the 3-5 year range. I'm still in the 90/10 to 85/15 range overall. It *is* probably time for me to start trickling, but I don't hate my job and it's relatively secure. I think it's important to take the long view -- and really, since the 2008 GFC? it's been an amazing longterm run - even with the covid hiccup and the 2022 inflation mistake. But - of course - one needs to take the long (long long) view and what has been is no guarantee of what will be. *Personally* \- in hindsight? I think the "old" age-based split rules (or even horizon split rules) were always too conservative. One area I've liked for the last year or three --- REITs. Almost all in a taxable brokerage (plus a bit on a Roth IRA), but my 401k plan doesn't offer any. The recurring income was my reasoning - but actually, they've had a pretty good growth year, especially when you consider the statutory drag that comes with REIT growth.

IWP_InvestingWtPurps

Honestly, it depends a lot on age and risk tolerance. A 25-year-old and a 60-year-old should not be looking at that gold stack the same way. But 64% in one asset should definitely be trimmed no matter what. Gold's had a great run since 2018, but the problem is you're holding a single big position on one asset. That's concentration risk. I wouldn't dump it all at once, but I'd take profits and rebalance in stages. Move a chunk into your global ETFs, add to bonds for stability and income, and grow the stock allocation a bit if the risk tolerance is there. Even go into other metals like silver, copper, etc. Real estate (like a REIT or direct if you can) is a solid diversifier too. And keep some cash for opportunities. Overtime I think gold should go down to 5–15%, with the rest spread across equities, bonds, property, other metals and cash based on your timeline.

tickerscout

Take this with a grain of salt, I wouldn't pretend to give investment advice. But this is the level of reading I would do before considering a particular stock. An Owner of Rooms, Not an Operator of Hotels Apple Hospitality REIT owns hotels and collects what they earn, but it does not run them. Its properties are rooms-focused select-service and extended-stay hotels in urban, high-end suburban and developing markets, flying Marriott and Hilton flags such as Hilton Garden Inn, Courtyard, Hampton, Residence Inn and Homewood Suites. The customer is a traveling salesperson, a project crew on assignment, a family visiting relatives. Because tax rules bar a REIT from operating hotels, every property is leased to a wholly owned taxable subsidiary and turned over to one of fifteen unaffiliated management companies that hire the staff and set the room rates. The company's own payroll is 64 people. What it actually does is allocate capital: buy hotels, sell hotels, renovate them, finance them, and pass the residual cash to shareholders every month. The scale is substantial and the mix deliberately plain. At March 31, 2026 there were 217 hotels and roughly 29,600 rooms across 37 states and the District of Columbia, producing $1.4 billion of revenue over the last twelve months, about 90% of it room revenue. Nothing in that portfolio is scarce or hard to replicate. The thesis follows: a competently run, conservatively financed and thoroughly commoditized collection of real estate whose profits track the American travel cycle with almost no idiosyncratic lever, priced at $16.77 for an occupancy-led recovery that has not yet produced a single dollar of pricing power. Diversification Is Not a Moat What protects the cash flow is real but shallow. Brand affiliation buys access to loyalty programs and reservation systems no independent owner could build. Scale across 217 properties removes single-market risk. Low leverage lowers the cost of capital and permits buying when leveraged owners cannot. The manager arrangement is better designed than the industry norm: roughly 81% of hotels pay a variable fee of 2.5% to 3.5% of gross revenues on short terms, terminable for missed performance thresholds, rather than the base-plus-incentive structure that pays operators regardless of outcome. Each of those advantages is rented. The brands belong to franchisors who charge fees on room revenue, set the standards that drive renovation spending and control renewal terms; concentration in two of them means the counterparties hold the stronger hand. Upscale select-service hotels are among the easiest lodging assets in the world to build, so any sustained excess return invites supply. Diversification does not deliver a return above the market for U.S. upscale lodging; it delivers that market's return, minus fees. The risks are the ordinary cyclical kind: demand tied to employment and corporate travel budgets, a cost base of labor, insurance, property taxes and utilities that does not fall when revenue does, 14 ground-leased properties, and catastrophe exposure in a repriced insurance market. One is already fading: the reduced government travel management blamed for much of 2025's softness, which persisted through an extended shutdown late in the year, is now a favorable comparison rather than a headwind. The live one is the 2026 maturity wall. Occupancy Is Back, Rate Is Not The March 2026 quarter is the inflection the market has seized on. Revenue rose 3.1% to $337.7 million, RevPAR rose 3.1% to $114.43 and Comparable Hotels RevPAR 2.2%, but the composition cools the enthusiasm. Occupancy went from 71.1% to 72.8% while ADR (Average Daily Rate) moved from $156.24 to $157.19, a gain of 0.6%. Essentially all of the improvement was volume, and volume in a hotel is bought with variable cost: labor and utilities scale with rooms sold, so hotel operating expense rose 3.5% against 3.1% revenue growth and Adjusted Hotel EBITDA rose exactly in line with revenue, to $108.5 million, leaving the margin unchanged at 32.1%. Rate, by contrast, drops to the bottom line nearly whole. The recovery so far has produced activity, not earnings power. The longer record sharpens the point. ADR (Average Daily Rate) was $155.76 in 2023, $158.01 in 2024 and $159.06 in 2025, a cumulative gain of about 2% while wages, insurance and property taxes rose considerably faster. Hotel operating expense consumed 58.1% of revenue in 2023, 60.0% in 2025 and 61.3% in the March quarter, and Adjusted Hotel EBITDA margin fell from 35.9% to 33.7%. Full-year 2025 revenue declined 1.3% to $1.4 billion and net income fell 18.1% to $175.4 million, or $0.74 per share, even though G&A fell 24.1% on a reduced executive incentive accrual that reversed in the March quarter. Comparable Hotels statistics for 2024 and 2023 are measured against the current 216-hotel set, so they describe the trend of today's portfolio rather than what was reported at the time, but the direction is not in question. For a lodging REIT, per-share earnings power reads better through FFO than through GAAP EPS. FFO was $363.3 million in 2023, $384.9 million in 2024, $357.6 million in 2025 and $359.2 million over the trailing twelve months; against the weighted average share counts of those periods that is roughly $1.58, $1.60, $1.50 and $1.52 per share. Three years, no progress. One wrinkle limits cross-period comparison: effective January 1, 2026 the company began excluding share-based compensation, about $7.7 million a year, from MFFO and Adjusted EBITDAre, and only the prior-year quarter was restated to match, so quarterly non-GAAP figures sit above the annual ones by roughly that amount annualized and cannot be chained to them; on that basis quarterly MFFO was $80.3 million against $78.8 million. Management raised full-year 2026 guidance to Adjusted EBITDAre of $436 million to $458 million from $424 million to $447 million, and Comparable Hotels RevPAR growth to 0.0% to 2.0% from negative 1.0% to positive 1.0%, a midpoint raise of about 2.6%. Cash After the Hotels Are Fed Operating cash flow was $369.9 million over the trailing twelve months against $95.9 million of capital improvements and $227.4 million of distributions, leaving roughly $47 million of annual surplus. That surplus, not the FFO payout ratio of about 63%, is the true measure of distribution safety. FFO adds real estate depreciation back in full, but hotels genuinely consume capital: brand standards mandate it, and about 21 properties are in comprehensive renovation during 2026 within capex guidance of $80 million to $90 million. Charge the actual spending against FFO and distributable cash is nearer $1.11 per share against a $0.96 distribution, a cushion of about 16%, and renovation costs twice over, since a hotel under construction sells fewer rooms while the work proceeds. Quality is otherwise clean: interest paid of $79.8 million in 2025 sat close to the $81.5 million expensed, and cash taxes of $1.0 million are trivial as REIT status implies. A $31.7 million seasonal build in the receivable from third-party managers held March quarter operating cash flow to $48.9 million against FFO of $76.5 million, and reverses as the year progresses. Low Leverage, a Crowded July Debt principal was $1.6 billion at March 31, 2026 at a weighted-average all-in rate of 4.65%, with 63% fixed or swap-fixed. That is roughly 3.5x Adjusted EBITDAre and about 36.5% of total capitalization, genuinely conservative for a cyclical lodging owner and the single best feature of the enterprise. Corporate cash is thin at $7.8 million, but revolver availability of $558.8 million more than covers it, and all covenants were met. The near-term schedule deserves attention. About $292.1 million of principal falls due between April and December 2026: a $19.5 million mortgage, a $51.0 million three-property mortgage, and the $89.1 million drawn revolver together with a $130 million term loan, both maturing July 25, 2026. The last two are extendable by up to a year subject to conditions, though management stated an intention to refinance instead. Whether that refinancing was completed, and at what spread against the existing SOFR plus 1.35% to 2.25% grid, is not established by anything available here, and the answer sets the interest run rate for the rest of the year. Two swaps covering $200 million also mature during 2026 with replacements expected at higher rates; a 100 basis point move shifts annual net income by about $5.8 million, or roughly $0.02 per share. Beyond that the ladder is manageable at $278.6 million in 2027, $334.1 million in 2028 and $460.0 million in 2030. Because REIT distribution rules prevent retaining earnings, maturities must be refinanced rather than repaid, making credit market access a structural dependency, and committed development at Anchorage and Las Vegas of about $209 million at fixed prices through 2028 will likewise be funded with debt or disposition proceeds against annual free cash near $47 million. A full balance sheet is not available for 2023, so the leverage path can be traced only from the 2024 year end forward; whether 36.5% is drift upward or a return to a longer-run norm cannot be answered from what is at hand.

tickerscout

Take this with a grain of salt, I wouldn't pretend to give investment advice. But this is the level of reading I would do before considering a particular stock. An Owner of Rooms, Not an Operator of Hotels Apple Hospitality REIT owns hotels and collects what they earn, but it does not run them. Its properties are rooms-focused select-service and extended-stay hotels in urban, high-end suburban and developing markets, flying Marriott and Hilton flags such as Hilton Garden Inn, Courtyard, Hampton, Residence Inn and Homewood Suites. The customer is a traveling salesperson, a project crew on assignment, a family visiting relatives. Because tax rules bar a REIT from operating hotels, every property is leased to a wholly owned taxable subsidiary and turned over to one of fifteen unaffiliated management companies that hire the staff and set the room rates. The company's own payroll is 64 people. What it actually does is allocate capital: buy hotels, sell hotels, renovate them, finance them, and pass the residual cash to shareholders every month. The scale is substantial and the mix deliberately plain. At March 31, 2026 there were 217 hotels and roughly 29,600 rooms across 37 states and the District of Columbia, producing $1.4 billion of revenue over the last twelve months, about 90% of it room revenue. Nothing in that portfolio is scarce or hard to replicate. The thesis follows: a competently run, conservatively financed and thoroughly commoditized collection of real estate whose profits track the American travel cycle with almost no idiosyncratic lever, priced at $16.77 for an occupancy-led recovery that has not yet produced a single dollar of pricing power. Diversification Is Not a Moat What protects the cash flow is real but shallow. Brand affiliation buys access to loyalty programs and reservation systems no independent owner could build. Scale across 217 properties removes single-market risk. Low leverage lowers the cost of capital and permits buying when leveraged owners cannot. The manager arrangement is better designed than the industry norm: roughly 81% of hotels pay a variable fee of 2.5% to 3.5% of gross revenues on short terms, terminable for missed performance thresholds, rather than the base-plus-incentive structure that pays operators regardless of outcome. Each of those advantages is rented. The brands belong to franchisors who charge fees on room revenue, set the standards that drive renovation spending and control renewal terms; concentration in two of them means the counterparties hold the stronger hand. Upscale select-service hotels are among the easiest lodging assets in the world to build, so any sustained excess return invites supply. Diversification does not deliver a return above the market for U.S. upscale lodging; it delivers that market's return, minus fees. The risks are the ordinary cyclical kind: demand tied to employment and corporate travel budgets, a cost base of labor, insurance, property taxes and utilities that does not fall when revenue does, 14 ground-leased properties, and catastrophe exposure in a repriced insurance market. One is already fading: the reduced government travel management blamed for much of 2025's softness, which persisted through an extended shutdown late in the year, is now a favorable comparison rather than a headwind. The live one is the 2026 maturity wall. Occupancy Is Back, Rate Is Not The March 2026 quarter is the inflection the market has seized on. Revenue rose 3.1% to $337.7 million, RevPAR rose 3.1% to $114.43 and Comparable Hotels RevPAR 2.2%, but the composition cools the enthusiasm. Occupancy went from 71.1% to 72.8% while ADR (Average Daily Rate) moved from $156.24 to $157.19, a gain of 0.6%. Essentially all of the improvement was volume, and volume in a hotel is bought with variable cost: labor and utilities scale with rooms sold, so hotel operating expense rose 3.5% against 3.1% revenue growth and Adjusted Hotel EBITDA rose exactly in line with revenue, to $108.5 million, leaving the margin unchanged at 32.1%. Rate, by contrast, drops to the bottom line nearly whole. The recovery so far has produced activity, not earnings power. The longer record sharpens the point. ADR (Average Daily Rate) was $155.76 in 2023, $158.01 in 2024 and $159.06 in 2025, a cumulative gain of about 2% while wages, insurance and property taxes rose considerably faster. Hotel operating expense consumed 58.1% of revenue in 2023, 60.0% in 2025 and 61.3% in the March quarter, and Adjusted Hotel EBITDA margin fell from 35.9% to 33.7%. Full-year 2025 revenue declined 1.3% to $1.4 billion and net income fell 18.1% to $175.4 million, or $0.74 per share, even though G&A fell 24.1% on a reduced executive incentive accrual that reversed in the March quarter. Comparable Hotels statistics for 2024 and 2023 are measured against the current 216-hotel set, so they describe the trend of today's portfolio rather than what was reported at the time, but the direction is not in question. For a lodging REIT, per-share earnings power reads better through FFO than through GAAP EPS. FFO was $363.3 million in 2023, $384.9 million in 2024, $357.6 million in 2025 and $359.2 million over the trailing twelve months; against the weighted average share counts of those periods that is roughly $1.58, $1.60, $1.50 and $1.52 per share. Three years, no progress. One wrinkle limits cross-period comparison: effective January 1, 2026 the company began excluding share-based compensation, about $7.7 million a year, from MFFO and Adjusted EBITDAre, and only the prior-year quarter was restated to match, so quarterly non-GAAP figures sit above the annual ones by roughly that amount annualized and cannot be chained to them; on that basis quarterly MFFO was $80.3 million against $78.8 million. Management raised full-year 2026 guidance to Adjusted EBITDAre of $436 million to $458 million from $424 million to $447 million, and Comparable Hotels RevPAR growth to 0.0% to 2.0% from negative 1.0% to positive 1.0%, a midpoint raise of about 2.6%. Cash After the Hotels Are Fed Operating cash flow was $369.9 million over the trailing twelve months against $95.9 million of capital improvements and $227.4 million of distributions, leaving roughly $47 million of annual surplus. That surplus, not the FFO payout ratio of about 63%, is the true measure of distribution safety. FFO adds real estate depreciation back in full, but hotels genuinely consume capital: brand standards mandate it, and about 21 properties are in comprehensive renovation during 2026 within capex guidance of $80 million to $90 million. Charge the actual spending against FFO and distributable cash is nearer $1.11 per share against a $0.96 distribution, a cushion of about 16%, and renovation costs twice over, since a hotel under construction sells fewer rooms while the work proceeds. Quality is otherwise clean: interest paid of $79.8 million in 2025 sat close to the $81.5 million expensed, and cash taxes of $1.0 million are trivial as REIT status implies. A $31.7 million seasonal build in the receivable from third-party managers held March quarter operating cash flow to $48.9 million against FFO of $76.5 million, and reverses as the year progresses. Low Leverage, a Crowded July Debt principal was $1.6 billion at March 31, 2026 at a weighted-average all-in rate of 4.65%, with 63% fixed or swap-fixed. That is roughly 3.5x Adjusted EBITDAre and about 36.5% of total capitalization, genuinely conservative for a cyclical lodging owner and the single best feature of the enterprise. Corporate cash is thin at $7.8 million, but revolver availability of $558.8 million more than covers it, and all covenants were met. The near-term schedule deserves attention. About $292.1 million of principal falls due between April and December 2026: a $19.5 million mortgage, a $51.0 million three-property mortgage, and the $89.1 million drawn revolver together with a $130 million term loan, both maturing July 25, 2026. The last two are extendable by up to a year subject to conditions, though management stated an intention to refinance instead. Whether that refinancing was completed, and at what spread against the existing SOFR plus 1.35% to 2.25% grid, is not established by anything available here, and the answer sets the interest run rate for the rest of the year. Two swaps covering $200 million also mature during 2026 with replacements expected at higher rates; a 100 basis point move shifts annual net income by about $5.8 million, or roughly $0.02 per share. Beyond that the ladder is manageable at $278.6 million in 2027, $334.1 million in 2028 and $460.0 million in 2030. Because REIT distribution rules prevent retaining earnings, maturities must be refinanced rather than repaid, making credit market access a structural dependency, and committed development at Anchorage and Las Vegas of about $209 million at fixed prices through 2028 will likewise be funded with debt or disposition proceeds against annual free cash near $47 million. A full balance sheet is not available for 2023, so the leverage path can be traced only from the 2024 year end forward; whether 36.5% is drift upward or a return to a longer-run norm cannot be answered from what is at hand.

tickerscout

For a company to qualify as a REIT it has to return a certain amount of its income to share holders which is why they are all dividend stocks. And by doing so they have a special tax arrangement where by the owe little to no taxes on the money they return. But it really depends on the company. Depending on the REIT it can be a very cyclical business because they are exposed to whatever companies they rent space too. If say they rent space to all consumer goods stores then they are exposed to that market which has its own cycles. As for owning a REIT, you still pay taxes on the dividends you make like all dividend paying stocks. I can give you an overview of APLE if you would like.

DDonutsLatte598

Thanks for the info - one more question, if you don't mind. Your opinion on REITs and are they worth purchasing. I was looking at the APLE REIT in particular. Also, are they taxed the highest of all stock?

thelonewanderer333

After 5 years of trying to time the markets, I've decided to just DCA into the indices like a normie who doesn't know what a call or put is. So, prepare for black swans in precious metals, managed futures, convertible securities, and REIT's.

BjornIronside2021

What about AGNC and CIM (REIT stocks)?!?! When do they get their retribution?!?!

rbrumble

My dog was a commerical REIT I had been picking up large volumes of before covid, and then they tanked when commercial rentals went south. Five plus years later, it's sitting at about 50% of what I paid, but it does pay a monthly dividend, so I'm going to hold it and keep accruing shares until I decide I need the lump sum. I bought Twitter back in the day and it went to about half for years until it came back, and when Uncle Elon bought all outstanding shares to take it private I made a good profit, so I'm prepared to hold onto this REIT for awhile, I'm stubborn like that.

Ok-Nose29

What does it mean that the top 4 customers of every single datacenter REIT in this picture are Google, Microsoft, Amazon, Meta Who all themselves have their own datacenters I don't think there are any customers for datacenters other than the hyperscalers themselves who all had already won the economy with near infinite high margin free cash flow https://preview.redd.it/mvf1gbz4pkdh1.png?width=1075&format=png&auto=webp&s=56d819c6270e59831d4b655a5ddbcc2cfc856835

bam2350

State income taxes don't apply? Then be sure to include munis that avoid federal taxes. Control costs now. If you're trying to amass wealth on top on the guaranteed 80K/month, more savings early in the timeframe is a real advantage. Likewise, keep after it. If the person is willing/able to work at it some, direct investment into property might be an option to do some tax things. REIT likely wouldn't have the tax advantages but could provide the diversification. One possible allocation could look like this: 25% SGOV or similar, 25% FLMI or similar, 15% international index fund, 35% broad US index such as VOO/VTI/SPYM. If 50% stocks is more than your comfort, dial it back into TIPS and/or SGOV (RETI and/or property fits here too).

CardboardCompass

REIT's are evaluated pretty differently than normal stocks. EPS and P/E can be misleading because depreciation makes the earnings look worse than the actual cash coming in, so most people follow FFO and AFFO instead. Past that, I'd look at occupancy, average lease length, and how the debt is structured. If a REIT has a bunch of loans coming due in the next year or two, it's going to hit way harder by rate changes than one that already locked in low rates for years. Also worth comparing the cap rate to whatever else is trading in that same sector, office etc. That usually tells you more about whether it's actually cheap than the P/E does

JahMusicMan

Depends on if this is in your tax sheltered account or regular brokerage: Tax Sheltered: Bonds REIT High Dividend index funds Small Cap Funds International funds Brokerage: Small Cap International funds Money market funds/Cash Bitcoin Any risky investments

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.