If you are looking for an income stream from your portfolio then Realty Income and Agree Reality are almost like "must own" businesses. Both are fantastic REITs with excellent balance sheets, great management, and a strong-strong moat.
How do you start to define a moat for a REIT?
Looking externally, consider the geography of their properties and the tenants leasing those properties. If you tried to drop red dots on a map to show Realty's and Agree's properties then you would see a smear of red across the entire map. That geographic diversity. Then look at the tenants and the business sectors they work in. It's like looking at a wall of candy where you see something of everything, from retailers to services ... from Target and Lowes to Bank of America to Burger King to AMC Theatres. That's diversity in income stream. Not everything will thrive in a heavy recession but not everything will collapse either.
Now look internally for the moat. Quality of leadership is high for both. Presentations are clear and easy to understand because management wants you to understand them. Capital allocation and management is prudent as seen by manageable debt levels and low cost of capital. Realty has an A- credit rating from S&P and Agree is BBB. This is great!
I don't know too much about STAG. For the industrial space, I look to Modiv Industrial, symbol MDV. The CEO of Modiv is Aaron Halfacre. He is a super clear communicator with a superb sense of snark and humor. What makes Modiv special? They are focused on industrial manufacturing vs simply "industrial" which may contain warehouses and logistics. Interesting fact about Modiv: they are headquartered in Reno, NV but do not own any properties in their home state!
I'm afraid if I wrote a newsletter I will have a reader making a paper airplane out of the paper! 🛩️ I'm not sure that would be the desired ... response. 🤭
These are great recommendations!
If you are looking for an income stream from your portfolio then Realty Income and Agree Reality are almost like "must own" businesses. Both are fantastic REITs with excellent balance sheets, great management, and a strong-strong moat.
How do you start to define a moat for a REIT?
Looking externally, consider the geography of their properties and the tenants leasing those properties. If you tried to drop red dots on a map to show Realty's and Agree's properties then you would see a smear of red across the entire map. That geographic diversity. Then look at the tenants and the business sectors they work in. It's like looking at a wall of candy where you see something of everything, from retailers to services ... from Target and Lowes to Bank of America to Burger King to AMC Theatres. That's diversity in income stream. Not everything will thrive in a heavy recession but not everything will collapse either.
Now look internally for the moat. Quality of leadership is high for both. Presentations are clear and easy to understand because management wants you to understand them. Capital allocation and management is prudent as seen by manageable debt levels and low cost of capital. Realty has an A- credit rating from S&P and Agree is BBB. This is great!
I don't know too much about STAG. For the industrial space, I look to Modiv Industrial, symbol MDV. The CEO of Modiv is Aaron Halfacre. He is a super clear communicator with a superb sense of snark and humor. What makes Modiv special? They are focused on industrial manufacturing vs simply "industrial" which may contain warehouses and logistics. Interesting fact about Modiv: they are headquartered in Reno, NV but do not own any properties in their home state!
Love this! I feel like you should be writing the dividend newsletter, Boris! Your insights are amazing. :)
I'm afraid if I wrote a newsletter I will have a reader making a paper airplane out of the paper! 🛩️ I'm not sure that would be the desired ... response. 🤭
You are underestimating yourself!