What is up with REITs

Discussion in 'Stock Message Boards NYSE, NASDAQ, AMEX' started by justaguy, Aug 23, 2020.

  1. justaguy

    justaguy New Member

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    I am puzzled why even Profitable REITs are down 10% after excellent earnings?

    Any suggestions why?

    Take CDR collected 90% of June rents, FFO of 0.06 so even paid a modest dividend.

    Being a grocery store, Home Depot or Walmart anchored mall owner would have seen positve growth after earnings but down 10%!
     
  2. A55

    A55 Well-Known Member

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    They collected 90%. Not 100%.

    The company stock is a commodity. Price is driven by supply and demand. Collecting rent is not sexy. Nobody pumps REIT to Robinhood traders. The REIT sector is dragged down by vacancies, unpaid rents, failing retail, and mREIT are hurting from low interest.

    There is a limit and budget for everyone. You have $XXX capital to deploy. You can't buy everything. A lot of buyers don't see a devalued REIT as a company with potential. So if I have $XXX of my own money, do I buy an REIT, or Apple, or Tesla, or Amazon? People look at a REIT trading for XX% of value in Feb, and don't see the same upside as you do.
     
  3. A55

    A55 Well-Known Member

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  4. A55

    A55 Well-Known Member

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    Screenshot_2020-08-20-16-26-19_kindlephoto-294807181.png Screenshot_20200823-221001_kindlephoto-456965201.png Screenshot_20200823-221019_kindlephoto-456987817.png Screenshot_2020-08-24-15-41-35_kindlephoto-481382734.png
     
    #4 A55, Aug 24, 2020
    Last edited: Aug 24, 2020
  5. A55

    A55 Well-Known Member

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    Simon Property Group, Inc. (SPG)
    NYSE - NYSE Delayed Price. Currency in USD
    Add to watchlist
    68.50+3.98 (+6.17%)
    At close: 4:00PM EDT
    68.97 +0.47 (0.69%)
    After hours: 6:07PM EDT
     
  6. TomB16

    TomB16 Well-Known Member

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    I speculate a lot of rent will be written off and never paid, by the time this is over. We haven't seen all of the damage.

    I own a lot of reits and like them but it's clear that tenants will pass losses along to the landlords who have no one to pass it along to.

    Reits will be sexy again in a couple of years. It's cyclic.
     
  7. A55

    A55 Well-Known Member

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    Some landlords go into forbearance. REIT with strong balance sheets, cash, and credit lines will not. They could also sell off properties. Ultimately, it's passed onto the shareholders. Stock prices go down. Dividends are cut.

    Simon Property has filed suit against Gap. This will set the precedent. If Simon wins, then everyone must pay rent as their lease agreement stipulates. If Gap wins, then most tenants in rent deferral can refuse to pay without fear of reprisal.

    Small landlords are the victims. A guy with a rental who depends on the monthly rent. The tenant can't be evicted from the home. There's no way possible to enforce rent collection. In some places, that tenant may continue to live in the unit without paying rent, without a calendar day limit. The small landlord has zero recourse. And depending on locality, may even have to refund the security deposit. Not unheard of for a landlord to have to pay 10s of 1000s of dollars to the tenant, before they will vacate the unit.
     
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  8. The Brontide

    The Brontide Active Member

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    There aren't as many small landlords since the 08/09 washout. They were all snapped up out of forclosure just like as it is happening now again.

    And many landlords aren't under federally backed loans, so let the evictions begin, as they already are.

    With 40 or so million renters soon getting bounced out to the street, their credit ratings thrashed, and malls closing at an even faster rate,...

    ... Who is going to be renting and who is going to be buying.

    I am currently not in that market.

    As tomb16 said, it is cyclical. But this isn't the cycle I want to be in atm.
     
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  9. A55

    A55 Well-Known Member

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    is

    Except in markets with laws to protect tenants. Rent control areas typically have laws that protect tenants. Tenants could go a very long time without paying. Then you take them to court. Then to have appeals. Years could go by. Resulting in a judgement where the landlord pays the tenant. I get it. Lawmakers don't want greedy landlords to throw people out on the street. But a guy like me, with a rental, is screwed it a tenant decides to take the system against you. It happened to a guy I know. 20 months of unpaid rent. Then he had to pay $10,000 to the tenant for kicking the tenant out.
     
  10. The Brontide

    The Brontide Active Member

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    Aka: California
     
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