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Dividend Growth Newsletter Portfolio Holding Realty Income Keeps Chugging Along

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Image Shown: Shares of Realty Income Corporation have performed quite well over the past year, keeping recent headwinds in mind. By Callum Turcan Dividend Growth Newsletter portfolio holding Realty Income Corp (O) posted a modest increase in its adjusted funds from operations (‘AFFO’) on a per share during its third quarter 2019 earnings report published November 4. Billing itself as “The Monthly Dividend Company” with a ~3.5% yield as of this writing, this REIT has paid out over 590 consecutive monthly dividends during its 50-year long operating history and has increased its per-share payout over 100 times since going public in 1994. We caution that shares of O will continue to experience volatility as expectations of future interest rates are … Read more

DGN Holding Realty Income Continues Moving Higher

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Image Shown: Shares of Realty Income Corporation (O) have been on an upward tear this year as excitement over a lower interest rate environment, courtesy of the Federal Reserve, is driving up interest in real estate investment trusts. By Callum Turcan A holding in our Dividend Growth Newsletter portfolio, Realty Income Corporation (O) invests in single-tenant properties both domestically and now abroad after expanding overseas for the first time earlier this year. The REIT pays out a monthly dividend and has done so for 590 consecutive months (as of early-September 2019), pushing through 102 payout increases since going public in 1994. Shares of the REIT yield 3.6% as of this writing. We like Realty Income’s “A” rated credit ratings (A3/A-), … Read more

Shares of DGN Holding Digital Realty Climbing Upwards

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Image Source: Digital Realty Trust Inc – IR Presentation By Callum Turcan One of our favorite holdings in the Dividend Growth Newsletter is Digital Realty Trust (DLR), a data center REIT whose shares yield 3.4% as of this writing. Digital Realty expects to generate $6.60-$6.70 per share in core FFO this year, up 5% at the midpoint when excluding a new lease accounting standard and foreign currency headwinds. Please note that due to those two factors and pressure from rental renewals (DLR had a lot of leases expire in 2019 and some of the new leases were signed at modestly lower rates), Digital Realty’s reported core FFO ($6.65/share at the midpoint of guidance) in 2019 will only grow marginally from … Read more

Realty Income Posts Solid Earnings, Acquires Overseas Real Estate for First Time

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Image Source: Realty Income Corporation – IR Presentation By Callum Turcan Realty Income Corporation (O) is a REIT focused on free-standing, single-tenant commercial properties in 49 US states, Puerto Rico, and now the UK. At the end of the second quarter of 2019, Realty Income had economic interests in almost 6,000 properties. The REIT reported second quarter earnings on August 5, and we liked what we saw. Realty Income is included in our Dividend Growth Newsletter portfolio and shares of O yield 3.9% as of this writing. Please note that the REIT pays out a monthly dividend and has been doing so for 589 consecutive months (~49 years). Financial Overview As you can see in the graphic below, Realty Income … Read more

Latest Channel Checks at Malls…Scary

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We know malls come and go, and location is everything, but our latest visit to a few malls in the Chicagoland area leave us scratching our heads in a big way. One was eerily empty. By Brian Nelson, CFA A small sample set is never one to extrapolate, but our latest checks of malls in the northwest Chicagoland area came up a little surprising. We’re not sounding the alarm bells just yet, but we think some caution is in order for the largest mall REITs, including Tanger Factory (SKT), Macerich (MAC), Simon Property (SPG) and Taubman (TCO). Something just wasn’t quite right on our latest visit, and we attribute it primarily to failing anchor department stores, namely Carson Pirie Scott … Read more

Digital Realty 2019 Guidance Indicative of Datacenter Pricing Trends

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Image shown: Digital Realty’s top 20 customers by annualized base rent. Source: Digital Realty investor presentation. Digital Realty expects weakness in rental rates on renewal leases on a cash basis in 2019, which is indicative of negotiating power held by large cloud operators, but the REIT expects top-line growth to continue thanks in part to ongoing growth in leasing volume. By Kris Rosemann Shares of simulated Dividend Growth Newsletter portfolio idea Digital Realty Trust (DLR) faced selling pressure following the release of its 2019 guidance January 9. The update revealed expectations for a high-single-digit decline in rental rates on renewal leases on a cash basis and core funds from operations (FFO) guidance of $6.60-$6.70, the latter of which came in … Read more

Valuentum Stock Screeners

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This article was sent to members via email December 29. That email can be accessed at the link that follows this article. By Brian Nelson, CFA Hi everyone, I wanted to provide an update with respect to Valuentum’s stock screeners. We believe our stock screeners are among the most robust when it comes to providing forward-looking data, or data that is important with respect to the investment decision-making process. We publish screens in each of the monthly newsletters, but we also provide a basic weekly screener for download on the left column of the website, “Download Weekly Stock Screener (xls) — login required.”   We also have other products. The more robust DataScreener, for example, is part of the quarterly Financial … Read more

Market Mayhem — Alerts for Members

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During these extremely volatile times, it’s important to stay focused. On December 15, we informed all of our members to “Pay Attention.” Shortly thereafter, we notified members of the potential for a stock market technical breakdown. This morning, we offered a pre-market briefing about the importance of thinking about portfolio protection. For Best Ideas Newsletter and Dividend Growth Newsletter members: http://campaign.r20.constantcontact.com/render?preview=true&m=1110817109903&ca=e2406cd6-c113-4344-8731-493f33fc44a4&id=preview For High Yield Dividend Newsletter members: http://campaign.r20.constantcontact.com/render?preview=true&m=1110817109903&ca=b3ba530f-38b3-489a-ac96-2961dca89c6b&id=preview For Exclusive members: http://campaign.r20.constantcontact.com/render?preview=true&m=1110817109903&ca=ba6d90c0-4433-48b2-9b8a-aac4ddf9006e&id=preview We’re here for any questions. Please just let us know how we can help! Kind regards, Brian Nelson, CFA  brian@valuentum.com

Valuentum’s Weighted Average Cost of Capital (WACC) Distribution

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The weighted average cost of capital is one of the most subjective measures in corporate finance, but it is also one of the most important ones. “The most important item over time in valuation is obviously interest rates…If interest rates are destined to be at low levels…It makes any stream of earnings from investments worth more money. The bogey is always what government bonds yield….Any investment is worth all the cash you’re going to get out between now and judgment day discounted back. The discounting back is affected by whether you choose interests rates like those of Japan or interest rates like those we had in 1982…When we had 15 percent short-term rates in 1982, it was silly to pay … Read more

Digital Realty Remains Acquisitive, Well-Positioned

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Image shown: The performance of Digital Realty Trust’s stock since the beginning of 2016. The data center REIT continues to be on the acquisition hunt, and momentum in its business couldn’t be stronger, in our opinion. Its debt levels are elevated, but not unlike that of other REITs that are dependent on the external capital markets. We continue to like the strength of Digital Realty’s end market and think the REIT is fundamentally well-positioned to capture increased demand. By Brian Nelson, CFA On the heels of Digital Realty Trust’s (DLR) increased guidance for core funds from operations (FFO) for 2018 to the range of $6.50-$6.60 from $6.45-$6.60 when it reported first-quarter results in April, the REIT in mid-June issued $650 … Read more