For those new to this blog, I have a passion for educating on Real Estate Investment Trusts (REITs) to help subscribers achieve financial freedom.

My passion is deeply rooted in both my successes and my failures.

I love speaking about the latter in particular to help investors avoid some of my pitfalls.

And I can assure you that with over 30 years of experience in commercial real estate, there have been plenty of failures. 

When I was an active developer, I learned to face a lot of adversity—and keep going.

Weather delays, cost overruns, zoning delays, tenant defaults, recessions, partnership disputes, poor construction, and many other risks were commonplace.

Over the decades, I learned to mitigate these risks, although none of them were inescapable.

For example, no one can control weather… but I could make sure the building structure was fully framed before winter arrived.

I didn’t allow change orders because they cause costs to go up (and boy, aint’ that the truth these days).

And after a few tenant defaults (i.e., Econo Lube n’ Tune) I began to seek out clients with better balance sheets and strong liquidity.

Recessions are inescapable… And as many know, the Great Recession led me to pivot to my current job as a REIT analyst.

I love sharing these failures with readers, and that’s why I plan to commence a new “Lessons Learned” series, in which I will provide lessons from my failures and blueprints for success.

Value creation isn’t easy—if it were, we’d all have the same net worth as Warren Buffett.

But even Buffett has seen his share of failure. He bought the failing textile company, Berkshire Hathaway, in 1962 and bought as much stock as he could. According to Buffett, he spent $200 billion over 20 years to keep it afloat but it was a huge disappointment.

But when making investments, if at first, you don’t succeed, move on to a new strategy.

As I tell my students, investing really boils down to learning from your mistakes.

So, I’m excited to share some of my failures with you, and I hope it help you in becoming a more intelligent REIT investor.

The World According to REITs

NewLake Capital Partners, Inc. (NLCP) made the news today as it acquired a cultivation property in Missouri for $34 million dollars. 

As some of you may know, I recently interviewed Gordan DuGan, the chairman of NLCP. He talked about properties they were investing in, and now it’s officially being announced.

As published in a recent article by New Cannabis Vestures,

“NewLake’s $34.0 million aggregate commitment will be invested across three parts. Part-one begins with NewLake’s $7.3 million purchase of the company’s flagship Missouri cultivation facility with a commitment to fund an additional $5.2 million to finish construction, which is expected to be completed by June 2022.”

For those that know me, I am long several cannabis REITs. The return on investment is no small matter.

The Daily REITBeat

In other REIT news this morning, Colliers Securities initiated Whitestone REIT (WSR) with a buy rating ($15 price target).

• PS Business Parks, Inc. (PSB) announced Stephen W. Wilson has been appointed as the company’s president/CEO effective immediately. He has been serving as interim president/CEO since January 17 and has been a director of the company since July 2019. He will continue to serve as a director.
• INDUS Realty Trust, Inc. (INDT) announced updates on leasing, its acquisition pipeline, its development pipeline, and dispositions for the three months ended March 31, 2022. It had one new lease and one renewal totaling 48,846 square feet, with an average straight-line rent basis up 18.5% (15% on cash basis). It ended March 31 at 100% occupancy.