What's does one do after losing a lot of weight? Buy ALL new clothes!!
Paid
Members
Public
GLP-1 weigtht loss drugs like Ozempic have been a top story in financial news over the past few weeks wreaking havoc on shares of food and medical device companies. Stock market participants believe major changes are afoot in American consumption patterns and are voting with their wallets. While the verdict
Shopping Center REITs
Paid
Members
Public
Broadly speaking, I believe there have been several meaningful positive changes which have occurred over the past several years in the shopping center REIT space which are currently under appreciated by investors. Positive changes include: -Portfolio rationalization (moving up the average household income/density curve) - Below I show the
Univar + Brenntag back of the envelope
Paid
Members
Public
Late last week it was reported that the global leader in chemical distribution Brenntag (BNR.GR) is considering an acquisition of the number two player Univar (UNVR). While I think BNR could pay $45 per share, fund the deal almost entirely in debt, and have the transaction be nicely accretive,
Multifamily REITs ALL raising guidance in 2Q....
Paid
Members
Public
In short, results are good...very good. AVB CPT ESS MAA and UDR all increased guidance. Rental growth remains very strong in July and renewals sent out for Aug-Oct have large rental increases. This means that 2023 will be another very good year as 2022 rental increases have a full
Buying apartment buildings below pre-COVID prices
Paid
Members
Public
Back where we started nearly 2 years ago -> While rents have increased significantly and private apartment values have soared, the apartment REITs are again selling at a significant discount to the value of their assets. A combination of interest rate and recession fears have lead to a selloff
Other things I've done (pt. 2) - Towers
Paid
Members
Public
Welcome to the wonderful work of economically resilient communications infrastructure assets. During the Jan/Feb selloff I was able to purchase shares of American Tower (AMT), a global operator of cellphone towers, at a reasonably attractive price. Cell towers house critical piece of the communications landscape and cell tower REITs
Things I don't much like that I've nibbled on
Paid
Members
Public
While 1Q22 allowed me many opportunities to buy high quality businesses at attractive prices, over the past week I've done a little bit of dumpster diving. In no particular order: KB Homes (KBH) & M/I Homes (MHO)- While I've owned many building products companies
Some other things I've done this Quarter (part 1)
Paid
Members
Public
In no particular order: * Significantly reduced exposure to Kilroy Realty (KRC) which I've written about repeatedly [https://www.privateeyecapital.com/tag/krc/]. The company continues to successfully execute life sciences development and is building NAV per share. I continue to think this is the best of the office
