PEAK

High-Yielding Digital Realty Is Committed to Rewarding Income Seeking Investors

by

Image Shown: Digital Realty Trust Inc continues to secure new leases which supports its growth outlook. Image Source: Digital Realty Trust Inc – Second Quarter of 2022 Earnings Press Release By Callum Turcan Data center real estate investment trusts (‘REITs’) are a great source of income with ample growth opportunities given the secular tailwinds underpinning data demand growth. The proliferation of cloud computing, the Internet of Things (‘IoT’) trend, the rise of autonomous automobiles, households that previously did not have access to the Internet gaining access (particularly in sub-Saharan Africa and South Asian), the rollout of 5G wireless services, and other factors are all driving up data demand around the world. In turn, that makes it easier for data center … Read more

Nelson: Executing the Valuentum Strategy

by

Video: Valuentum’s President Brian Nelson, CFA, explains why he’s turned bearish on the equity markets after a great bull run. In this 8-minute video, learn about the fantastic returns of the stock market the past three years, and how the Valuentum way has cushioned the market decline in 2022. Watch now to learn about the textbook execution of the Valuentum strategy and more! –——— Tickerized for holdings in the SPY. Brian Nelson owns shares in SPY, SCHG, QQQ, DIA, VOT, BITO, and IWM. Valuentum owns SPY, SCHG, QQQ, VOO, and DIA. Brian Nelson’s household owns shares in HON, DIS, HAS, NKE. Some of the other securities written about in this article may be included in Valuentum’s simulated newsletter portfolios. Contact … Read more

Video: We Expect A Huge Market Flush! Looking to “Raise” Incremental Cash

by

Video: Valuentum’s Brian Nelson, CFA, breaks down the current market environment, highlighting reasons for the poor market sentiment driven by “tapped out” consumers and investors alike. He expects a big market “flush,” and a challenging next couple years but remains a big fan of stocks for the long haul. Valuentum continues to seek to “raise” incremental cash in the simulated newsletter portfolios as it prepares to weather the storm. Video length: ~10 minutes. –——— Tickerized for holdings in the SPY. Brian Nelson owns shares in SPY, SCHG, QQQ, DIA, VOT, BITO, and IWM. Valuentum owns SPY, SCHG, QQQ, VOO, and DIA. Brian Nelson’s household owns shares in HON, DIS, HAS, NKE. Some of the other securities written about in this … Read more

Valuentum’s Unmatched Product Suite

by

Hi everyone! — We continue to be huge believers in the concept of enterprise valuation, which emphasizes the key cash-based sources of intrinsic value–net cash on the balance sheet and strong and growing future expected free cash flows. Meta Platforms, Inc. (META) and Alphabet Inc. (GOOG) remain two of the most underpriced ideas on the market today, and we remain huge fans of their tremendous long-term investment prospects. — There are a couple things worth reminding readers, however. A good relevant rule of thumb I learned early in my career working for my first portfolio manager is that a stock’s return in the near term is driven roughly 40% by the market, 30% by the industry it operates in, and 30% … Read more

Nelson: I Have Been Wrong About the Prospect of Near-Term Inflationary-Driven Earnings Tailwinds

by

Transcript During the past several weeks, we’ve grown increasingly concerned about the health of consumer-tied entities across not only the consumer staples but also the consumer discretionary spaces. Many consumer staples entities, while raising prices, aren’t raising them fast enough to drive operating-income and bottom-line expansion, while many consumer-discretionary companies are facing higher freight and logistics costs and weaker performance in China, perhaps best revealed by Nike’s most recently-reported quarter, where inventory advanced 23% compared to the prior-year period. The tell-tale sign about the health of the consumer may be Amazon (AMZN) Prime Day, which is coming up on July 12-13, but based on many of the reports we’ve monitored this past earnings season, even if sales are strong on … Read more

Prologis Buying Duke Realty as Logistical Real Estate Market Consolidates Further

by

Image Shown: Prologis Inc is merging with Duke Realty Corporation through an all-stock acquisition that will see Prologis cement itself as a logistical real estate powerhouse in the US and worldwide. Image Source: Duke Realty Corporation / Prologis Inc – June 2022 IR Presentation announcing the acquisition of Duke Realty by Prologis By Callum Turcan On June 13, Prologis Inc (PLD) announced it was buying Duke Realty Corporation (DRE) through an all-stock transaction worth ~$26 billion when including the assumption of debt. In the wake of severe capital market volatility, some major deals in the real estate investment trust (‘REIT’) space are still getting done. Back in May 2022, Duke Realty rejected Prologis’ previous offer worth ~$24 billion as being … Read more

American Tower Beats Estimates and Raises Guidance

by

Image Shown: An overview of American Tower Corporation’s global asset base. Image Source: American Tower Corporation – First Quarter of 2022 IR Earnings Presentation By Callum Turcan American Tower Corporation (AMT) is a real estate investment trust (‘REIT’) with a global portfolio of ~221,000 multi-tenant communications properties. We include American Tower as an idea in the High Yield Dividend Newsletter portfolio as its dividend growth track record and outlook are rock-solid. Shares of AMT yield ~2.3% as of this writing. Historically, the REIT has generated substantial “excess” free cash flows (after fully covering its total distribution obligations). Looking ahead, American Tower should continue to be a cash flow cow, highlighting one of the reasons we are big fans of the REIT. … Read more

Public Storage Getting Ready To Report First Quarter 2022 Earnings

by

Image Shown: Public Storage, a longtime idea in our High Yield Dividend Newsletter portfolio, has seen its share price skyrocket over the past year with room for additional upside, in our view. By Callum Turcan After the market close on May 3, the self-storage real estate investment trust (‘REIT’) Public Storage (PSA) intends to report its first-quarter earnings for 2022, which will be followed up by an earnings conference call a day later. Shares of PSA have been a long-time idea in the High Yield Dividend Newsletter portfolio, and we continue to be enormous fans of the name. The high end of our fair value estimate range sits at $445 per share of Public Storage, indicating that shares of PSA have … Read more

High-Yielding American Tower Is a Free Cash Flow Cow

by

Image Shown: American Tower Corporation operates the tower structure and related land parcel of cell tower assets, while its tenants handle the remainder. Image Source: American Tower Corporation – Third Quarter of 2021 IR Earnings Presentation By Callum Turcan Rising geopolitical tensions, inflationary headwinds, supply chain hurdles, and pressures from the rising interest rate environment are all weighing negatively on equity markets. Through the end of normal trading hours on February 19, the S&P 500 (SPY) is down over 9% and the Vanguard Real Estate Index Fund ETF (VNQ) is down over 11% year-to-date on a price only basis. In our view, this selloff presents an opportunity for investors with a longer term focus to consider high-quality REITs such as … Read more

High-Yielding Life Storage Has Tremendous Dividend Strength

by

Image Shown: Life Storage Inc is committed to rewarding income seeking investors. Image Source: Life Storage Inc – January 2022 IR Presentation By Callum Turcan We recently added Life Storage Inc (LSI), a self-administered and self-managed real estate investment trust (‘REIT’) focused on self-storage properties in the US, as an idea to the simulated High Yield Dividend Newsletter portfolio (more here). Life Storage owns 1,000+ self-storage properties across 30+ states and has received an investment grade credit rating (Baa2/BBB) from two of the ‘Big Three’ rating agencies. The REIT also operates a third-party management platform for self-storage properties. Back in 2016, Life Storage rebranded from Sovran Self Storage and changed its ticker to LSI from SSS. Impressive Dividend Strength  The … Read more