PEAK

Dividend Growth Idea Realty Income Makes an Intriguing Purchase

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Image Shown: Dividend growth idea Realty Income Corporation is acquiring its first real estate property in the gaming realm through a sale-leaseback transaction with Wynn Resorts Limited. Image Source: Realty Income Corporation – February 2022 IR Presentation By Callum Turcan On February 15, dividend growth idea Realty Income Corp (O) announced its 620th consecutive monthly dividend. Since going public in 1994, Realty Income has increased its monthly payout over 110 times. Realty Income is a real estate investment trust (‘REIT’) focused on single-tenant commercial properties. We include the REIT as an idea in our Dividend Growth Newsletter portfolio and continue to be big fans of Realty Income. Shares of O yield ~4.4% as of this writing. Recent Acquisition  Realty Income … Read more

Don’t Throw the Baby Out with the Bathwater

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Image: Erica Nicol Takeaways: Junk tech should continue to collapse, but the stylistic area of large cap growth and big cap tech should remain resilient. Moderately elevated levels of inflation coupled with interest rates hovering at all-time lows isn’t a terrible combination. In fact, it’s not bad at all. The markets are digesting the huge gains of the past few years so far in 2022, and the excesses in ARKK funds, crypto, SPACs, and meme stocks are being rid from the system. Our best ideas are “outperforming” the very benchmarks that are outperforming everyone else. The BIN portfolio is down 6.4% and the DGN portfolio is down 3.2% year to date. The SPY is down 7.8%, while the average investor … Read more

Public Storage Is Simply A Monster REIT Idea!

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Image Shown: REITs have struggled relative to other investing areas during the past 5 years. Absent the areas of crypto tokens, speculative disruptive innovators and technology, the most prudent area has been large cap growth the past five years, an area that we have been materially overweight in the newsletter portfolios. By Brian Nelson, CFA  REIT returns haven’t been that great the past several years (as shown above), but that may be no reason to fret. Some of the top yielding REITs across our coverage include Arbor Realty Trust (ABR), Iron Mountain (IRM), LTC Properties (LTC) and Omega Healthcare (OHI). These REITs come with significantly elevated risk, however. There’s one REIT that may not yield quite as much, but it … Read more

ICYMI: Dividend Growth Idea Realty Income Completes Transformation, Further Expands Overseas

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This article originally appeared on our website November 17, 2021. Image Shown: An overview of dividend growth idea Realty Income Corporation’s tenant base, though this appears to be before taking into account its recent merger with VEREIT and spinoff of its corporate office properties portfolio. Image Source: Realty Income Corporation – November 2021 IR Presentation By Callum Turcan On November 1, Realty Income Corporation (O) completed its stock-for-stock merger with VEREIT, a deal that according to an April 2021 press release had an enterprise value of ~$50 billion. When the merger closed, shareholders of Realty Income owned ~70% of the new entity and shareholders of VEREIT owned the remainder. Realty Income is a real estate investment trust (‘REIT’) with a … Read more

Hard Work and the Trust That Binds

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Image Source: Terry Johnson By Brian Nelson, CFA We’ll have our traditional Valuentum Weekly email coming out on Sunday, and I’m excited to say our team is putting the finishing touches on our technology industry update, so we’ll have a whole bunch of fresh reports for you to look at Sunday evening/Monday morning. It’s easy to forget how much we’ve been through the past two years. Often, we forget how helpful the warning that markets were going to crash was the weekend before they did on February 22, 2020, “Is a Stock Market Crash Coming? – Coronavirus Update and P/E Ratios,” how we thought dollar-cost-averaging made sense at the bottom in March 2020, and how we went “all-in” in April … Read more

Digital Realty Boosts Guidance and Further Extends Growth Runway

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Image Source: Digital Realty Trust Inc – Third Quarter of 2021 IR Earnings Presentation By Callum Turcan On October 26, Digital Realty Trust Inc (DLR) posted third quarter 2021 earnings that beat both consensus top- and bottom-line estimates. The data center real estate investment trust (‘REIT’) saw its GAAP operating revenues come in at $1.1 billion (up 11% year-over-year) and its non-GAAP core funds from operations (‘FFO’) per share come in at $1.65 per share (up 7% year-over-year) last quarter. Digital Realty also increased its guidance in conjunction with its latest earnings report, which we appreciate, as that signals the REIT is growing confident that it will exit 2021 on a high note. Digital Realty’s business is steadily recovering after … Read more

High-Yield Idea CyrusOne Considers Selling Itself

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Image Shown: Shares of CyrusOne, an idea included in our High Yield Dividend Newsletter portfolio, are on a modest upward climb of late. The data center real estate investment trust (‘REIT’) is reportedly considering putting itself up for sale, though we like the REIT’s income generation upside regardless of whether a sale does materialize as its outlook continues to improve after posting stellar performance during the first half of 2021. By Callum Turcan Reportedly, CyrusOne (CONE) is actively exploring a potential sale according to Reuters. We include shares of CONE as an idea in the High Yield Dividend Newsletter portfolio (more on that here). The data center real estate investment trust (‘REIT’) has experienced significant turnover in its top ranks … Read more

Dividend Growth Idea Realty Income Is on the Rebound

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Image Source: Realty Income Corporation – August 2021 IR Presentation By Callum Turcan Realty Income Corporation (O) is a real estate investment trust (‘REIT’) that is steadily recovering from the worst of the coronavirus (‘COVID-19’) pandemic. For reference, Realty Income focuses on freestanding singe-tenant commercial properties in the US and the UK. The financial health of the portions of its tenant base that were hit particularly hard by the pandemic, such as movie theater operators, has improved considerably of late. Back during the second quarter of 2020, Realty Income collected 86.5% of its contractually owed rent across its entire portfolio as many of its movie theater and health & fitness tenants, and to a lesser extent its causal dinning tenants, … Read more

High Yielding Idea CyrusOne Beats Estimates and Raises Guidance

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Image Source: CyrusOne Inc – Second Quarter of 2021 IR Earnings Presentation By Callum Turcan The data center and colocation service provider CyrusOne Inc (CONE) is a real estate investment trust (‘REIT’) that is included as an idea in the High Yield Dividend Newsletter portfolio (more on that here). CyrusOne reported second quarter 2021 earnings July 28 that beat both consensus top- and bottom-line estimates, and CyrusOne also increased its full-year guidance in conjunction with its latest earnings update. We liked what we saw in CyrusOne’s latest earnings report. Earnings Update Last quarter, CyrusOne’s GAAP revenues advanced 11% year-over-year while its non-GAAP normalized funds from operations (‘FFO’) increased 4% year-over-year, though on a per-share basis, its normalized FFO per share … Read more

Two High-Quality Self-Storage REITs Beat Estimates and Raise Guidance

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Image Shown: Shares of CubeSmart (depicted by the blue line) and Public Storage (depicted by the orange line), two self-storage REITs that are included as ideas in the High Yield Dividend Newsletter portfolio, have surged higher year-to-date. By Callum Turcan We are big fans of the self-storage real estate investment trust (‘REIT’) industry, particularly in the US. These REITs offer their customers an economical way to maximize their living space at a time when domestic housing prices are surging from a baseline that is already quite high. Additionally, self-storage REITs are well-positioned to push through continuous rent increases given that the monthly rental expense for a self-storage unit for an ordinary US household likely represents just a sliver of their … Read more