Very Bad News for REITs

[@askjussi]

What REITs are you buying for this new environment? Are you changing anything about your approach? Let me know below. Thank you for your support! Your "likes" help me a lot to keep on growing and I appreciate it. Jussi

[@williebrown1974]

If the dividends are safe and rising I like that oppurtunity.

[@mateomatt123]

Great commentary. Thanks! I like AHH and SILA. Both have held up well throughout the general REIT weakness.

[@naziminfo]

Amazing videos with lots of information. Thanks you Jussi Askola.

[@askjussi]

Thank you for your kind comment!

[@MartinD9999]

Buy them when low and invest in things BEFORE people invest in those things. This should be exciting REIT & Dividend investors.

[@askjussi]

Well said!

[@mitchcuttingedgerealestate]

CCI, NNN, REXR and ARE sub $102.61 is a bargain... HYL subscriber here too and waiting for a small PAX pullback to acquire more!

[@ehaneber]

Great video, thinking that REXR will continue to fall until January 20....so looking to purchase next year if it falls to the mid 30s, targeting a 4.75% dividend.

[@ChrisS010]

There we almost 😅

[@Yami_Spirit]

Jussi, I'm interested on your thoughts on OUT, you mentioned them before in your channel but barely since. I've had some good growth with them for over a year now.

[@Steve-yd1ze]

Jussi, what is going on with ARE?

[@askjussi]

Regular market volatility. No major news.

[@timknizek673]

Just allows me more time to accumulate great reits. Our time in the wilderness continues on. REXR, SBAC look like solid buys. Also like ARE despite the RFK effect. Also own VICI, NLCP, AHH, EPR & SILA

[@askjussi]

Well said. Which one of these is your favorite right now?

[@timknizek673]

@@askjussi REXR and ARE look like great 3-5year buy and holds. Both look like falling knives still but once we get some policy clarity on tariffs and health policy both should bottom in early 2025. Looking for ARE to hold its Oct 2023 low around $90. EPR could be a 2025 sleeper, not much policy blow back, lower gas prices and potential tax cut extensions should all be a boon for EPR tenants. Also EPRs div is much higher than bonds, which is a factor currently hurting ARE and REXR I believe.

[@mitchrils]

@@timknizek673interesting thoughts 👍

[@akarpov949]

Exactly! Contrarian

[@DrBrandonSchultz]

How does this impact financial REITs like ARR?

[@mitchrils]

Just to clarify broadly speaking Jussi would you say net lease REITs are less able to reap the benefits of inflation? ie. NNN, EPR, ADC etc.

[@askjussi]

Yes they are more exposed to the risk of inflation than other REITs

[@jefferysdad1]

NLCP is currently my favorite REIT! Very little debt great dividend, more states legalizing Cannabis Do you think the Trump election could help NLCP get on a more desirable exchange?

[@Martin1-V8E]

Hello Jussi what do think about CARE PROPERTY INVEST (CPINV)?

[@teijovuorenmaa1569]

What you think about bygi? Thank you!

[@askjussi]

I am a big fan

[@mitchcuttingedgerealestate]

CCI, NNN, PLD and ARE have been buys for me

[@askjussi]

I think that there are better options than PLD

[@TheLethargicAge]

@@askjussi Like what?

[@RubbingPotatoes]

I thought REITs would be great during high inflation becausee it's real estate. Am i wrong ?

[@NelloW100]

Only debt free real assets protect you from Inflation. Or at least Long Term fixed debt. Reits are loaded with debt and often short to medium debt. Less than 10% of all reits meet my criteria for Low risk. Examples: ARE, AVB, PLD, HST, PSA, MAA. I am looking for way less than 10% interest expense/revenue and OCF more than 5x interest expense

[@eliboukarim8737]

What about mortgage reits?

[@finmathsci3052]

I guess BDCs will benefit from inflation in that case. 🤔

[@donovandavis5310]

Hey 👋🏼 Jus, How do you feel about O rn?🤔

[@askjussi]

I prefer some other REITs

[@Dave-zl2ky]

EGP? Thanks very much.

[@askjussi]

I own a position but there are better options right now

[@Dave-zl2ky]

@ thanks

[@Ghjgdsfh764]

Love the video. A reduction in population isn't considered disinflationary. In macroeconomics it shifts aggregate supply to the left and Long Run Aggregate supply to the left. You have a reduction in one of the factors of production (labor). Secondly, fewer workers especially skilled labor creates scarcity in the labor market bidding up wages. You could have an increase in productivity which is disinflationary. However, Macro 101 aging population, fewer workers is inflationary. More workers/immigration disinflationary.

[@flarnnetwork2952]

Can you talk about the biggest REIT ETF out there with the new policy environment? SCHH

[@shannonkohl68]

I generally agree with the premise that there are strong deflationary forces in the world today. However, wouldn't these affect REITs also in a detrimental manner? For instance, shouldn't aging population and lack of children mean that Apartment REITs may not be a good bet? I would also suggest that with regard to the growing automation of production via AI and robots that globalization is potentially dead. What would matter the most in production is cheap energy and cheap land to build factories. Not labor costs or the institutional knowledge of how to design things well. (Goodbye Apple, BMW, etc.) Although at least in the near term, institutional knowledge of how to train the AI's that design the products will probably be the winning strategy.

[@ibermudezl7836]

It's true, but the diversification of $O in Europe is being quite positive. It's true that it doesn't increase its clients' rents much, but this also provides a certain stability in occupancy. Plus, who knows what Trump or the economy will pull off next month-maybe a juggling act, maybe a magic trick! Waka Wakaaaa! -

[@askjussi]

Yes I agree. I just think that WPC is more attractive

[@LudVojta]

however, I heavily invested in REITS looking forward to the succesful 2025, but know I am little bit dissapointed yet. 😁Lets see.. And also surprised by Clipper Realty, whats going on? Any idea?

[@GregKischer]

Jussi, have you considered starting an ETF? Between HYL and HYI, would be nice for little guys! FYI, I'm going to keep posting this until it's addressed hahaha

[@davidwysocki1004]

Thanks, Jussi, for an interesting video.

[@theodoroseidler7072]

This is what I discussed with you before: REITs are closely correlated with the 10yr Bond rate. But, in my opinion, it is a generational opportunity to accumulate shares of the best REITs in the market. That is, if you can hold on to stocks over longer than a weekend...

[@MrDboydeluxe]

It got a hell of a lot worse today, I haven't even checked year to date total returns for clunkers VICI, O, WPC amongst others, all I heard January thru July..."wait until rates start going down!!!, reit's will skyrocket!!!" 4 cuts later...2024 is a lost year, no reason to expect in 2025 with two cuts will be any better.

[@askjussi]

REITs are up 30% since October 2023. 2024 was a good year.

[@MrDboydeluxe]

@askjussi 2024 is a good year?? Give me the YTD returns of VICI, O, WPC... I'll wait...

[@askjussi]

@@MrDboydeluxe Look at since October 25, 2023

[@Steelersfootball45]

They will be fine long term

[@TheLethargicAge]

Stick to REITs in sectors that either don’t depend on the consumer or that employ a B2B model.

[@mysterio1336]

like what ?

[@TheLethargicAge]

@ Industrial, cell towers, data centers

[@CR-lv1fs]

WPC?

[@choongching]

Need your new video to hear your POV regarding the FOMC announcement earlier today. 😢

[@askjussi]

Update coming at HYL later today

[@TheAhmedvienna]

NNN and ADC.

[@askjussi]

Which one do you prefer?

[@TheAhmedvienna]

@ I put 50/50. This market is too irrational for me.

[@TheAhmedvienna]

@ I bought some extra adc on the latest dip.

[@Eusebio-investimentos]

harvest year 😎

[@STAR-nw4qv]

What do you think about entering ARE at current values? Otherwise, I'm already in VICI, O and ADC.

[@askjussi]

I think that it is one of the best opportunities at these prices

[@STAR-nw4qv]

@@askjussi Thank you .

[@martinahager4931]

In my opinion the EUR interest rates will drop because Germany and France will ne in a recession next year.

[@Kibatsume1]

Economy wise I think we are doomed no matter who got in office 97% GPD and growing.

[@nickbailey9622]

So I can buy more cheaper.... oh no...

[@John-vf8qe]

Reits were such a popular choice because of their consistent income, but with the fed hesitating to cut interest rates and inflation continuing to rise, it's a tough time for a lot of these companies. It’s like a perfect storm for them, and investors are getting skittish. You can see it in how they're selling off

[@georgeearling905]

The problem is that REITs are so sensitive to interest rates. When rates go up, the cost of borrowing increases, which can really hurt their profit margins. A lot of these companies are highly leveraged, so if it becomes more expensive to finance their properties, their bottom line is going to take a hit

[@NelleHummell]

higher rates mean investors might move their money into bonds and other fixed income investments, which are seen as safer when yields are higher

[@christopherherbert2407]

That’s true, but I think it’s important to remember that not all REITs are created equal. While companies like Realty Income and Crown Castle might be struggling, there are others like Rexford Industrial that could actually benefit from the current environment. Industrial REITs, in particular, have been doing well because of the boom in e commerce and the need for more warehouses and distribution centers.

[@LoydJohnson-kp3jv]

Rexford focuses on industrial properties in high demand areas like Southern California, so they’ve got a bit of an edge in this market.

[@DianaTownsend-kj5kj]

Not all Reits are going to sink. The industrial sector has been one of the few bright spots, especially with the demand for logistics and warehousing. So, while higher interest rates are bad news for a lot of Reits, companies like Rexford have more resilience. They might face some pressure, but their fundamentals are still strong

[@MikeUSD1]

Mortgage rates dropped allot after Trump was president for 2 years.

[@DoseBoi303]

VNQ

[@askjussi]

Why VNQ over individual REITs?

[@DoseBoi303]

@@askjussi not saying VNQ over individual REITs, just throwing it out there, indexes do pretty well over long periods of time

[@Txyleo]

What's up Jussi? Are you tired or went through a flu? I see your eyes are not the same. My best wishes

[@taco7043]

Ok did not expect the pivot towards tech communism at the end of the video. If we're in tech communism no one is going to care about investing in anything or obsessing over spreadsheets.

[@askjussi]

I don't get your point here, Can you elaborate

[@ZerriJoseph]

Thank you Lord Jesus for the gift of life and blessings to me and my family $14,120.47 weekly profit Our lord Jesus have lifted up my Life!!!🙏❤️❤️

[@ghazanferfazli7335]

I'm 37 and have been looking for ways to be successful, please how??

[@ZerriJoseph]

Sure, the investment-advisor that guides me is..

[@ZerriJoseph]

Elizabeth stark

[@freddiearthur2151]

Same, I met Elizabeth stark last year for the first time at a conference in Wilshire, after then my Life has changed for good.God bless Elizabeth stark

[@laurawilliams713]

Her services is the best, I got a brand new Lambo last week and paid off my mortgage loan thanks to her wonderful services!

[@henrim9348]

Who cares about REITs? BTC is killing it. How about MSTR?