The Dangers of REIT Investing: 5 MUST KNOWS Before Buying Real Estate Investment Trusts!

Any other mistakes that I missed? Let me know in the comment section.
Thanks for all your support! All your "likes" are making a big difference and I appreciate it.
Jussi

That is opex not capex

What do you think of MPW stock currently?

Valuable lessons Jussi! Thank you!

Thx again for a great Video and insightful articles on SA!
Maybe an Idea for the next article: To list a few non-American REIT, like Big Yellow Group, Cibus, Vonovia, TAG etc. And maybe Asian, Austrialian too?

Great video! I would add another mistake : investing in small market cap REIT. They typically have low liquidity and are more volatile. Furthermore, they don't attract large institutional investors ; they may actually attract private equity investors who will try to push other shareholders out. Would you know how to assess future CAPEX needs?

how on earth do you measure good management? lol I wish i knew.

Thanks for sharing your experiences, these give credibility to your insights. I admit being guilty of at least few of these mistakes, learning along the way. In times like these when REITs continue to be pummeled and WPC (one of my biggests...) crashing because of management decisions, it is difficult to hold on to one's beliefs and try to remember that this too will pass. Or will it? Good to see you enjoyed some mökkimaisema as well, visited our land of midnight sun during summer? :)

I avoid office REITs because of the higher risks. Global REITs are exposed to currency risks, so no. If you are new to investing, REITs provide a stable income but you need to buy those with rising share prices, which means it is doing better, with rising dividends. Avoid catching a falling knife, even though it is cheap. This is everyone's first mistake: buying cheap thinking it will recover.

In other countries REITs might be subject to different rules. E.g. in Germany property companies are treated like normal corporations with the same taxes and the same regulations as car manufacturers. So there are no actual REITs.

mine is MPW. i cutloss few months already

Real Estate provides cashflow, tax benefits, equity building, competitive risk-adjusted returns, and inflation protection on its own. Whether you invest in physical properties or REITs, real estate may help you diversify your portfolio and reduce volatility. Dividends are what got me into investing in REITs, great way to secure the accumulate wealth, I hold AMT, CCI & PSA. $290k in profits made in 2022.

ExodusPoint Capital Management LP Acquires 100,872 Shares of SL Green Realty Corp
are you SURE you wont buy it ?

I only buy O, this is a great buying opportunity.

What do you think about BNL?

What is your opinion on Unibail Rodamco Westfield? They should reinstate the dividend in the next six months and the price is still the same as it was a year ago even though the dividend is closer and they have kept 100% of their profits for a couple of years now. Do you think it is a good investment at its current price?

How about TSLY, APLY, OARK and NVDY?

CEO
Stephen D. Lebovitz>>CBL & Associates Properties

Thanks for sharing.

Solid insights, couldn’t agree more… balance sheets are essential.

ABR 👑 tho

I always use VNQ ETF ( vanguard real estate trust etf)

The housing market is broken atm, mortgages and rents are far more expensive per average salary and it is not sustainable. Something has to break.

I would not be surprised if in the next few years rent control becomes a major factor to fight this crisis. And rent control would RUIN REIT's.

Can you stop going for a kiss with the camera? Nobody wants to make up with you.

Do you really know the difference between capex and opex in Reit industry. I doubt it.

Reality income is probably pretty safe given its track record for the past sixty years

What’s your thoughts on Redford industrial

Looking for where to begin putting in some funds that will aid me after retirement. Saving up isn't giving anything in return

Must know #2 the importance of good management. How does one assess the quality of management? Unless we somehow find out how much stock management owns who does an investor know how pro shareholders management is?

Must know #5 don’t invest only in the USA. Currently don’t own any nonUSA REITS. One thing that scares me is exchange rates. This is an additional risk vs. USA REITs. Another responder mentioned the fact you are subject to paying foreign taxes and have to pay fees for transfers from dollars to other currencies and visa versa.

Mask On Nurse Marty ((Ret)

Can you tell what proportion of your portfolio is Realty Income and do you buy these stocks now?

JMO
Stay away from office REIT except to play puts
To many company's let employees work from home
Never put to many eggs in one basket
1-3%
Except maybe covered call reits that you monitor daily. May be 15% - 20%
But jump ship at first sign of trouble and buy puts

Im not interested in office reits or mortage reits so......

Keep up the good work, Thank You for talking about the prudence of maintaining a diversified portfolio.
Sadly many investors come to this realization after suffering the consequence of a concentrated portfolio.
• Diversification also includes being diversified across different sectors (not only stocks).
• IMO at the end of the day TOTAL RETURN is what matters. The average investor will be in the market for 70 years (35 years accumulation phase and 35 years in retirement).
• Underperforming the market by 1% or 2% over seven decades is a lot of money.
• Holding a portfolio that is more concentrated than the overall market (almost guarantees this). It also introduces more risk than the overall stock market.
• Granted risk and return are correlated but the SPIVA report indicates that professional asset managers do not consistently beat the benchmark.

I use your videos to focus on a thin slice of my portfolio and you do a good job. Especially your CEO interviews

Thanks, Jussi, for another informative video presentation on REIT investing. Good stuff and excellent guidance on what not to do when investing in REITs.

How are you rating $ADC ? BUY or strong BUY?

what a beautiful background.

Are those saunas behind you, Mr Suomi?

What’s up Jussi! I know you said stay away from mREITs and I tend to agree but I feel like the Diamond in the rough in all the mREITs is $ABR. You should do a video on ABR. It my 3rd largest position. It went down to $10 after a hit piece came out but that was 17% below book value. I think ABR is the only mREIT to invest in.

Great content you made !

Thanks for sharing this informations. I like reits very much, focus not in dividend yield now, but in dividend growth. I would like your opinion about my reits now, please: O, AMT, Cube, VICI, WPC and CCI. I want to sell VICI and WPC and buy EXR.

Thank you again, Jussi! I enjoy the weekend videos! As always, great insights. Another mistake to mention is chasing high yield. There’s often a reason for that yield and people underestimate the reasons.

This is a mediocre take I suggest a reit only be 10-15% of a dividend portfolio and only “1” reit should be invested in right now and it’s realty O they have the best history and track record with surviving crashes (2008 and covid) my take

Thanks for the insight ! What are your thoughts on hedging against real estate depreciation?

Excellent video! I am going to treasure this tips

Thanks for the great info this is KEY 🔑 👍🏿

Hello Jussi, with your french background, what do you think of euro REITs, such as Nexity?

Hi, what do you think about $ABR? It is a mREIT. But I was impressed how they have handled recent short attach, much better than $MPW. I sold more than half of my $ABR position recently, but consider increase it again when it dips below $13 and double again at ~$10.

Why is NNN lagging so bad the last few years? A virtually identical competitor like Agree ADC is doing so much better. Why do you think that is?

Could you recomment foreign REITS that are ADRs, which can easily be invested in by Americans, as opposed to foreign REITs like Big Yellow Group, which is not a ADR and is more difficult and expensive to trade than a ADR.