Anyone Need A Lyft?

And just like that, the rally we rejoiced in came crashing down as investors took a step back to assess the Fed’s statement with sober heads. As I said, don’t get caught up in these turbulent market swings. The only way to pin down a profitable portfolio is to stand by solid foundations and strong balance sheets. REITs are obviously some of the best ways to do this.

As far as other sectors, tech is really taking a nosedive in this tumbling market. Tech giants like Zillow (ZG), DraftKings (DKNG), and Carvana (CVNA) all ate the rug this week as the roller coaster of rate increases left the economy in meltdown mode.

Lyft (LYFT), one of Silicon Valley’s most prized rideshare platforms, fell off a cliff after its earnings report revealed driver retention and gas prices are going to cut profits significantly.

The Uber opponent plunged over 33% this week, with a steep descent Wednesday morning right after the report was issued.

Lyft is a great example of how these tech stocks are at the mercy of a very precarious period in our economy. With rising prices and one of the most unstable labor markets in recent history, there are so many problems plaguing private equities.

This is a perfect time to consider diversifying your portfolio with REITs. REITs are not only one of the best hedges against an unstable economy, but the dividend potential and growth opportunities abound. With just a bit of research, you can easily understand the basics of what makes any investment in the REIT market a solid choice for stable returns.

Take Public Storage (PSA) for instance. This REIT acquired 232 facilities and built six more of its own in 2021. It’s now projecting 12–15% revenue growth in 2022. A REIT like this relies on long-term leases, not the whims of consumers, which makes it a great insulation asset against the volatility of other stocks like tech.

American Tower is another great example of a resilient REIT and one I’ve discussed recently as a great inflation fighter. As an owner and operator of wireless and broadcast communications infrastructure in several countries worldwide, this corporation isn’t going anywhere and its reach is only going to expand.

This REIT has been increasing investments in the international market and strengthening its global status through insatiable acquisitions. Also, just last year, it announced the completion of the acquisition of CoreSite Realty Corporation. 

Often, the REIT world moves slowly but steadily. When you’re looking at assets bound to lease terms of up to 10 years and infrastructure tied to essential services like cellphone coverage, there’s a lot of resiliency. If you really want to give your portfolio a lift, these are factors I’d consider.

Other Non-REIT News to Know About

California Enters the Cryptosphere

California —one of the largest economies in the world and our nation’s most technologically savvy state — just became the first state to formally begin the process of adopting cryptocurrency. Of course, with this ratification comes the kind of regulations only California can levy.

Earlier this week, Governor Gavin Newsom signed an executive order allowing state agencies to craft regulations for digital currencies. The order also calls for officials to explore more robust blockchain computing capabilities within government operations.

Newsom believes California is poised to pioneer this new non-fiat form of currency.

“Too often government lags behind technological advancements, so we’re getting ahead of the curve on this, laying the foundation to allow for consumers and business to thrive,” Newsom said in a statement.

Could this set a precedent among other progressive states? I guess we’ll find out.

The World According to REITs

As the first quarter (Q1) earnings season comes to wrap, I thought I would highlight some of the more significant announcements in today’s REIT watch.

Agree Realty Corporation Stays Hungry

Agree Realty Corporation (ADC) announced the results of a pretty remarkable Q1 just the other day, with approximately $430 million invested across 124 retail properties. ADC, a $6B+ industry leader in the acquisition and development of properties net leased to blue-chip U.S. retailers, commenced a record 15 development or Partner Capital Solutions (PCS) projects representing total committed capital of approximately $44 million.

Not only that, its core FFO increased 15.5% to $0.97 and AFFO increased 16.4% to $0.97. It also declared an April monthly dividend of $0.234 per share — a 7.8% year-over-year increase.

This blue-chip REIT has been at the forefront of the industry since the early ’90s and they’re as attractive today as they ever were.

Physicians Realty Trust Gains 15%

Physicians Realty Trust (DOC), a REIT centered on the world of healthcare and hospitals, reported Q1 total revenue of $130.4 million, an increase of 15% over the prior year. With $0.06 net income per share and $0.27 normalized FFO, this portfolio has promising potential headed into the summer.

President and CEO John T. Thomas said in the release:

Physicians Realty Trust had a strong first quarter and has remained focused on disciplined capital allocation for the benefit of our shareholders. We believe our portfolio is built for long-term success by providing stable growth in all economic scenarios and will begin to capture additional upside in this inflationary environment. We look forward to sharing more about our first quarter performance during today’s conference call.

This is the kind of investment I’m alluding to in the article above. In the world of REITs, strength is often defined by stability, as opposed to the tech world where factors of a fearful economy can influence your assets in unstable ways.

Brad Thomas is the Editor of the Forbes Real Estate Investor.

Disclaimer: This article is intended to provide information to interested parties. ...

How did you like this article? Let us know so we can better customize your reading experience.


Leave a comment to automatically be entered into our contest to win a free Echo Show.