Realty Income website says 3.4% of portfolio is Walgreens. Wonder if the store closures could be a material event.. likely not.. But drug stores in general are 5% of portfolio..
Well if they own profitable locations it will be OK. But if those all closed, that would be material. Ballpark 5% to FFO/sh, on top of the interest rate headwinds.
Price / yield matters . I am sure there are 100's of "bargains" in the current market but I can't seem to find them outside the energy space which I will not allow myself to throw any more $$ at. I desire to substantially increase my REIT holdings but despite current prices appearing attractive other than a few I already own I do not see it that way especially considering my desire to invest in the higher quality operations AND bare min divy yield requirements. Originally ignored ADC because its retail focus but if I had known two months what I know now I would certainly have bought a position in the $55-$56 range. As it is if it gets below $60 I''m starting a position.. I find your charts / tables insightful.
Thanks. I can relate. Only believe in a thesis of big interest rate drops makes most REITs a strong buy today. So that's what you see pumped over on SA, but will it happen?
Thanks for the article. I often think of them as an alternative to my other favorite net lease REIT, EPRT. It seems to me that EPRT's properties are somewhat riskier but have better escalators and organic growth. Both pursue an external growth model, but EPRT is more balanced with internal growth. It seems to me that EPRT should grow faster but may be more exposed in a downturn. Joey talks a lot about the value and quality of his properties but I have a hard time quantifying this.
You are welcome! I'm not sure the risks during the leases are that different. EPRT gets property financials and ADC does not, so EPRT can exit when they see problems coming. And based on the experience with STORE Capital, annual losses are unlikely to be large. But the good point Joey makes is that some of their properties are inherently less fungible than the simple boxes ADC favors. So if EPRT starts getting back car washes at lease end, and can't sell them into an overbuilt car-wash sector, then they will suffer.
Of course that would be a move toward security and growth and the expense of 100 bps in dividend yield. To be clear, I don't think O will fall off a cliff economically. But my view is that there is more that can go wrong there. As you know, I do not hold O.
Paul--A more thorough piece I cannot imagine. Seems like an excellent SWAN REIT, and well run. I would buy if I could get myself to stop extending my reach for yield! Best wishes!
Thanks. To be honest, I think my REIT ETF investments a mostly an effort to stabilize my portfolio. As to my REITs, some have already had their big losses, and stabilized at lows, so I'm hanging in. Others have stabilized with gains or even. So not much movement at this time. Biggest new REIT for me, as shared, is EPR. Also have invested over the last couple of months in some name companies at what I saw as lows: UPS, MDB, TOST, BROS, PANW.....
Thanks Paul, would have to AGREE with your assessment, but as always I am grateful you dive much deeper than I can swim. I loaded up around 55, thinking that 5.4% YOC was an attractive entry. I like Joey's visibility, accessibility, and his open market purchases, as well as the fact that they seem to have a focused discipline, and patience, one thing most others lack. Personally, I like these monthly payers and this allows be to continue to DRIP, and add when their is market price dislocation. AGR and EPR were bought for this purposes monthly income (adding at lower prices) with some price upside. Also, I never had a big enough position in NNN in the mid 30s, and was looking to replace, still have not sold the NNN, but using AGR as my replacement. Thanks again sir, hope summer is treating you well. Let Sheronne Cook!!! Go Blue.
Realty Income website says 3.4% of portfolio is Walgreens. Wonder if the store closures could be a material event.. likely not.. But drug stores in general are 5% of portfolio..
Well if they own profitable locations it will be OK. But if those all closed, that would be material. Ballpark 5% to FFO/sh, on top of the interest rate headwinds.
Price / yield matters . I am sure there are 100's of "bargains" in the current market but I can't seem to find them outside the energy space which I will not allow myself to throw any more $$ at. I desire to substantially increase my REIT holdings but despite current prices appearing attractive other than a few I already own I do not see it that way especially considering my desire to invest in the higher quality operations AND bare min divy yield requirements. Originally ignored ADC because its retail focus but if I had known two months what I know now I would certainly have bought a position in the $55-$56 range. As it is if it gets below $60 I''m starting a position.. I find your charts / tables insightful.
Thanks. I can relate. Only believe in a thesis of big interest rate drops makes most REITs a strong buy today. So that's what you see pumped over on SA, but will it happen?
Thanks for the article. I often think of them as an alternative to my other favorite net lease REIT, EPRT. It seems to me that EPRT's properties are somewhat riskier but have better escalators and organic growth. Both pursue an external growth model, but EPRT is more balanced with internal growth. It seems to me that EPRT should grow faster but may be more exposed in a downturn. Joey talks a lot about the value and quality of his properties but I have a hard time quantifying this.
You are welcome! I'm not sure the risks during the leases are that different. EPRT gets property financials and ADC does not, so EPRT can exit when they see problems coming. And based on the experience with STORE Capital, annual losses are unlikely to be large. But the good point Joey makes is that some of their properties are inherently less fungible than the simple boxes ADC favors. So if EPRT starts getting back car washes at lease end, and can't sell them into an overbuilt car-wash sector, then they will suffer.
Time to cut out my O position and increase ADC :D
Of course that would be a move toward security and growth and the expense of 100 bps in dividend yield. To be clear, I don't think O will fall off a cliff economically. But my view is that there is more that can go wrong there. As you know, I do not hold O.
Paul--A more thorough piece I cannot imagine. Seems like an excellent SWAN REIT, and well run. I would buy if I could get myself to stop extending my reach for yield! Best wishes!
Thanks, MZ. This one was not officially in the Go-Fishing portfolio last winter, but will definitely be in the next one. Be careful out there...
Thanks. To be honest, I think my REIT ETF investments a mostly an effort to stabilize my portfolio. As to my REITs, some have already had their big losses, and stabilized at lows, so I'm hanging in. Others have stabilized with gains or even. So not much movement at this time. Biggest new REIT for me, as shared, is EPR. Also have invested over the last couple of months in some name companies at what I saw as lows: UPS, MDB, TOST, BROS, PANW.....
Thanks Paul, would have to AGREE with your assessment, but as always I am grateful you dive much deeper than I can swim. I loaded up around 55, thinking that 5.4% YOC was an attractive entry. I like Joey's visibility, accessibility, and his open market purchases, as well as the fact that they seem to have a focused discipline, and patience, one thing most others lack. Personally, I like these monthly payers and this allows be to continue to DRIP, and add when their is market price dislocation. AGR and EPR were bought for this purposes monthly income (adding at lower prices) with some price upside. Also, I never had a big enough position in NNN in the mid 30s, and was looking to replace, still have not sold the NNN, but using AGR as my replacement. Thanks again sir, hope summer is treating you well. Let Sheronne Cook!!! Go Blue.
You are welcome, Lawrence! Thanks for sharing your related thoughts and actions. Go Blue!