Connect with us

Real Estate Investing

REIT Scorecard: What Do The Numbers Say?

Published

on

https://pixabay.com/en/skyscraper-houses-city-america-450793/

If you’re looking to hedge your portfolio across various assets, real estate is one space that you can bank on. Despite the mortgage troubles most people fret over, exposure to real estate can promise solid returns over time. Some investors also rely on REITs instead of directly entering the property market.

Related: Here’s Why You Should Add Commercial Real Estate To Your Portfolio (And Why It’s Easier Than You Think)

This report from TheStreet had outlined the best REIT stocks for 2018. Let’s take a look at how they’ve fared this year.

Store Capital Corp

The first REIT in the list is Store Capital Corp, climbing  over 13% this year and is currently trading at $28.78. This stock has risen almost 16% over the last 12 months. This REIT has a market cap of $5.92 billion and an enterprise value of $8.14 billion.

Store Capital has managed to beat average analyst earnings estimates in three of the last four quarters that would have driven the REIT’s stock higher. Revenue for Store Capital is estimated to grow at 19.3% year-over-year to $510.4 million in 2018 and 13.6% to $579.81 million in 2019. Better yet, earnings are expected to rise 4.40% in 2018 and be flat in 2019.

PS Business Park

Shares of PS Business Parks has risen just over 6% this year and is currently trading at $130.77. However, the PSB stock has been flat over the last 12 months. This REIT has a market cap of $3.57 billion and an enterprise value of $4.70 billion. PSB has managed to beat average analyst earnings estimates in three quarters prior to Q2 2018 where the company announced earnings 23% below analyst estimates. Revenue for PSB is estimated to grow at 2.6% year-over-year to $412.5 million in 2018 and 2.2% year-over-year to $421.5 million in 2019. Earnings are however expected to fall 46.4% in 2018 and rise 13.8% in 2019.

Liberty Property Trust 

Shares of Liberty Property Trust has risen 3.3% this year and is currently trading at $44. However, the LPT stock has risen close to 7% over the last 12 months. This REIT has a market cap of $6.7 billion and an enterprise value of $9.1 billion. Similar to PSB, Liberty Property Trust has managed to beat average analyst earnings estimates in three quarters prior to Q2 2018 where the company announced earnings 64% below analyst estimates. Revenue for LPT is estimated to fall by 31.9% year-over-year to $490.42 million in 2018 and then rise 22.6% year-over-year to $601.45 million in 2019. Earnings are however expected to rise 2.1% in 2018 and fall 27.7% in 2019.

W P Carey 

Shares of W P Carey has declined close to 2% this year and is currently trading at $65.54. The WPC stock has fallen 2.3% over the last 12 months as well. This REIT has a huge market cap – nearly $7 billion and a massive enterprise value of $11.7 billion. WPC has managed to beat average analyst earnings estimates in each of the last four quarters. However, the company is struggling to expand its bottom line despite robust growth in sales next year. Revenue for WPC is estimated to fall 12.2% year-over-year to $771.35 million in 2018 and then rise 26.2% to $973.77 million in 2019. Earnings are however expected to rise 1.2% in 2018 and fall 5.1% in 2019.

One Liberty Properties

Shares of One Liberty Properties has risen approximately 13% this year and is currently trading at $29.26. The OLP stock has risen 23.5% over the last 12 months as well. This REIT has a market cap and an enterprise value of $553 million. OLP is one of the smallest REIT’s in terms of sales with regards to The Street’s REIT list. The firm has managed to beat average analyst earnings estimates in two of the last four quarters.

Armada Hoffler Properties

Shares of Armada Hoffler Properties has risen 5% and is currently trading at $15.85. The stock has risen 21.5% in the last 12 months. AHH beat analyst earnings estimate by 22% in Q1 2018 and 112% in Q3 2017. Similar to other REIT’s in this list AHH will experience revenue growth over the next two years but this will not translate into earnings growth. AHH’s revenue is estimated to rise 7.2% to $116.5 million in 2018 and 15.5% to $134.57 million in 2019. Comparatively, the company’s earnings are expected to be flat this year and decline 24% in 2019.

Washington REIT

Shares of Washington REIT has risen 3% and is currently trading at $31.37. The stock has declined 4% in the last 12 months. WRE has reported earnings below analyst estimates in two of the last four quarters which may have contributed to its share price decline in the past year. WRE’s revenue is estimated to rise 4.8% to $340.8 million in 2018 and 1.8% to $347 million in 2019.

Lexington Realty Trust

Shares of Lexington Realty Trust has declined over 2% and is currently trading at $9.05. The stock has declined 7% in the last 12 months. LXP has also struggled to meet analyst earnings estimates in three of the last four quarters. It reported earnings per share 116.7% below estimates in Q2 2018, 216% below estimates in Q1 2018 and 57% below estimates in Q3 2017. LXP’s revenue is estimated to rise 3.3% to $404.53 million in 2018 and then fall 5.5% to $382.3 million in 2019. Comparatively, the company’s earnings are expected to fall by 77.4% this year and rise significantly by 157% in 2019.

Empire State Realty

Shares of Empire State Realty has declined almost 16% and is currently trading at $17.29. The stock has declined 15% in the last 12 months. ESRT has failed to meet analyst earnings estimates in the last three consecutive quarters. ESRT’s revenue is estimated to rise 5.1% to $483.9 million in 2018 and then increase 1.8% to $492.9 million in 2019. Comparatively, the company’s earnings are expected to fall by 33% this year and rise by 20% in 2019.

American Assets Trust

Shares of American Assets Trust has risen almost 4% and is currently trading at $39.05. The stock has declined 2% in the last 12 months. Though AAT has managed to beat earnings estimates in the last four quarters, the stock price of this REIT has generated negative returns over the last year or so. AAT’s revenue is estimated to rise 5.3% to $331.8 million in 2018 and then increase 1.7% to $337.5 million in 2019.

Real Estate Investing

How to Invest In Real Estate Through Your IRA

Published

on

Investing in real estate can be a great way to grow your wealth, but did you know that you can use your IRA to invest in real estate? An IRA (Individual Retirement Account) is an investment account funded with pre-tax dollars and can be used to purchase investments such as stocks, bonds, or even real estate. Here’s what you need to know about using your IRA to invest in real estate. 

Rules & Regulations 

First and foremost, specific rules and regulations must be followed when using an IRA to invest in real estate. You must adhere to IRS guidelines regarding the types of investments allowed and how much you can contribute each year. 

The most important rule is that you cannot use the funds for personal benefit; any money used for personal benefit will be subject to tax penalties. 

Additionally, it’s important to note that the money in your IRA must be invested into a qualified trust company or custodian before it can be used for any investment, including real estate. 

Benefits of Using an IRA To Invest In Real Estate 

One of the major benefits of investing in real estate through an IRA is that all profits from the investment are tax-free until retirement age.

This means any profits gained from rental income or appreciation won’t have to be reported on taxes until you withdraw them at retirement (typically 59 ½ years old). Additionally, since a traditional or Roth IRA allows for up to $5000/year ($6000/year if over 50) contributions without triggering taxes on those amounts, this could provide more capital than if investing with after-tax dollars alone. 

This could give you more buying power when looking for a piece of property and create larger returns down the road with compounding interest. 

Drawbacks of Using an IRA To Invest In Real Estate

There are some drawbacks associated with investing in real estate through an IRA, such as using the money after retirement without incurring taxes and penalties on withdrawals before then.

Additionally, IRAs typically have higher fees than other investments because they require custodians or trustees who charge annual fees for managing the accounts. Also, since IRAs can’t borrow money against their assets or partner with outside investors, acquiring larger properties is challenging due to the limited capital resources available through an IRA account alone.

With proper research and planning, investing in real estate through your IRA may help increase your wealth while avoiding taxes on those profits until retirement age making it a potentially attractive option for many investors who want access to capital without being taxed prematurely.

Continue Reading

Business

How Big Real Estate Moguls Avoid Taxes (And How You Can, Too) 👀

Published

on

I was looking around Google for an old article on tax strategies and this five-year old video of myself happened to pop up.

I’m interviewing a tax expert about how real estate investors avoid paying taxes in perpetuity—AND how everyday citizens can do the same thing.

(Real estate—our TEMPLE I and TEMPLE II projects included—has a number of tax benefits savvy investors have capitalized on for years, including Opportunity Zone breaks and 10-year tax abatements.)

There’s the 1031 exchange, of course, which I’ve shared with you guys before. 

Just to refresh your memory, the 1031 Exchange allows you to roll over gains from your last project into a new property TAX FREE—as long as said property is worth the same or more.

But there’s ANOTHER TAX LOOPHOLE that can take your portfolio to an entirely new level by splitting your capital gains into MULTIPLE properties.

So I thought I’d share it with you guys. 💎

You can check it out here.

Let me know what you think. 😎

PS: In our next update, I’m going to break down how real estate moguls get paid from their properties…tax free. 👀
PPS: If you want to learn how to implement generational wealth strategies like this one, you can join our NYCE wealth academy (TRIBE U) here.

Continue Reading

Business

How I run a $300M+ business from the beach…(and how you can TOO!)

Published

on

Yes, you read that right.

If there’s anything the pandemic taught us, it’s that the paradigm of “office” and “workspace” has been shaken to its CORE.

Universities are teaching via Zoom, court dates are done virtually, FULLY REMOTE businesses are valued at $1B+, and legitimate Inc. 5000 startups are run from…wherever. 📲

This is my office for the day…

I am actually running our business from the beach, typing this from here.

It’s 4:28 pm CET, which means it’s 10:28 am EST and I am CRUSHING my to-do list.

(And the team will continue to crush it while I’m asleep. That’s the 🗝)

So how did we get here? 

We launched NYCE and our mission to create 100,000 millionaires in March, 2020…just as the global COVID-19 lockdown happened. 😳

As a result, we shut down our main office and set EVERYTHING up to run remotely…

SMOOTHLY! And a system that allows us to outperform competition by 200%. (You can build this system, too. More on this in a second.)

Here’s what we were able to do since then:

  • Gained 6M+ followers across all platforms 📈
  • Add 1500+ new apartments to the portfolio 🤑
  • Grow to $300M in real estate 🚀
  • 105% investor returns 🎉
  • 700K+ community members 🤝

And here’s the best part…

Having team members in all the main time zones gives us a 24-hour work cycle vs. 9-5/eight-hour on-the-clock performance.

This means we get 3x the productivity of a similar company. 🔥

Let me repeat that…3x PRODUCTIVITY vs. our competitors.

Meanwhile our project management software grants us 24-hour TEAM-WIDE connectivity that tracks all tasks and lets us know if productivity dips even a little bit.

There is ALWAYS someone senior awake. It could be Martin in Barcelona…Nat in New York…Vineet & Arif in New Delhi.

All the while giving YOU GUYS wealth hacks and daily content. 🔥

OK, so how can you do it?!

Well, the first step is to have an actual side hustle you’re launching. Not just an idea, a validated business.

MAJOR KEY: Do NOT spend money until you’ve made your FIRST DOLLAR! 🗝🗝🗝🗝

(You can catch a replay Business Launch masterclass here and see TRIBE member Nessa launched her business on the spot and got her first $45K client shortly after.)

One of the easiest ways to start is with Airbnb—you can start that in 10 minutes. Literally. (Here’s a guide if you need it.)

Once you have your business, you build a virtual infrastructure (you really just need two softwares, which are FREE), manage the team accordingly and run the business from there.

I’m gonna put together a step-by-step video breakdown this weekend inside the new TRIBE U on the FIVE key things you need to do this for YOURSELF. 💵 💎

From what software to use, how to build a team, how to keep.

In the meantime, drop a comment if you’re ready to build some wealth and any questions if you want more…

Let’s get to work. 🙌

PS: If you can’t be bothered with video and just wanna get to work, we’re hosting a TRIBE U workshop that will help you get this process started on the spot. It’s $479 $49. 🔥

Continue Reading

Trending


Warning: count(): Parameter must be an array or an object that implements Countable in /homepages/28/d742565295/htdocs/clickandbuilds/WealthLab/wp-content/themes/zox-news-child/single.php on line 683

You’ve reached your free article limit.

Continue reading by subscribing.

Go back to Homepage >
X

Forgot Password?

Join Us