The author presents a well-diversified six-stock REIT portfolio that has consistently outperformed the Vanguard Real Estate ETF (VNQ) since 2005, with a 14.1% annual return and a lower standard deviation, suggesting that building a REIT portfolio tailored to individual preferences can beat VNQ's performance without elevated risk.
This article does not mention any specific stocks. The author's advice is to rotate out of historically overvalued financial assets and into historically undervalued critical resources. The author's core argument is that there is a high probability of a recession in the next twelve months, and they believe that the Fed's policies will contribute to this recession. The author also highlights potential risks in the junk bond market, the private equity industry, and the banking sector.
The article mentions VICI Properties (NYSE:VICI) as the stock the author has been adding to their portfolio and recommends buying. The author believes that VICI Properties is set for double-digit earnings growth and has the potential for multiple expansions towards a 18-20x P/FFO. The key information and data mentioned about VICI Properties include its transition from junk-rated to IG-rated, a dividend of 5.14% at the current share price level, 100% occupancy rate, 41.8 years of average weighted lease, inflation-protected leases, and its investments in over $30B worth of assets. The author also highlights VICI Properties' move into the wellness sector through its acquisition of Canyon Ranch. The author expects a conservative price target of no less than $38/share for VICI Properties and concludes that it fulfills all their investment criteria, making it a "BUY" in their opinion.
Realty Income's shares have hit a one-year low, but the REIT's strong operating performance, dividend coverage, and diverse real estate portfolio make it an attractive investment with a 5.6% dividend yield.
The article mentions Wynn Resorts, Limited (NASDAQ:WYNN) stock. The author's advice is to remain on the sidelines and not buy the stock at the current time.
The author's core argument is that while there are positive aspects to Wynn Resorts, such as well-covered dividends and improving trends, the relative valuation of the stock is not attractive in comparison to other investment options. The author mentions the importance of the casino aspect of Wynn Resorts' business and how it has not fully recovered to pre-pandemic levels. The author also discusses the financial performance of the company, highlighting increases in revenue and net income compared to the previous year but lower levels compared to 2019.
The key information and data provided include the drop in Wynn Resorts' stock price over the past two months, the breakdown of revenue sources within the business, the recovery of casino revenue, the valuation ratios (price to sales and dividend yield) compared to historical levels, and the market's growth rate forecast for Wynn Resorts.
The article mentions VICI Properties (NYSE:VICI) as the stock that is being discussed. The author's recommendation is to buy VICI Properties, as they believe it is an attractive income investment for retirement.
The author's core argument is that VICI Properties provides a reliable source of passive income through its increasing quarterly dividends. The author also highlights the company's focus on long-term leases, high-quality assets, and strong execution as factors that contribute to its potential for growth and stability. The article provides information about VICI's dividend history and projections, as well as its revenue growth and investment-grade balance sheet. The author also discusses a short strangle strategy involving covered calls and cash-secured puts to generate additional income with VICI shares.
Overall, the article presents VICI Properties as a solid choice for retirement portfolios, offering stability, income, and growth prospects. The author rates VICI as a buy.
This article mentions two specific REITs: Realty Income (NYSE: O) and Medical Properties Trust (NYSE: MPW). The author's suggestion is that investors should be cautious with REITs that have unfavorable debt maturity profiles, as there is a risk of expensive refinancings and increased interest costs. The author provides analysis and calculations for Realty Income and Medical Properties Trust to illustrate the potential negative impact of high interest rates on their finances. The key argument is that the recent drop in REIT valuations is justified, and the higher interest rates may last for a longer period of time, leading to expensive refinancing for many REITs. The author advises investors to select REITs with long debt maturity profiles to mitigate the risk of unfavorable equity dilution.
