Amazing video! Always keep some of your portfolio in REITs!
@JonathanRizz
5 жыл бұрын
Casgains Academy - Stock Market Investing good channel, just subscribed
@sybo10
5 жыл бұрын
Just waiting on you to pick out a good REIT, I'll be right behind you, Great Vid Sven
@Eric-gu5hx
5 жыл бұрын
Very interesting video! I have O and WPC since some time and they have provided good distributions as well as capital appreciation! Keep up the good work!
@Value-Investing
5 жыл бұрын
Thanks!
@hr2079
4 жыл бұрын
Great material, as always, Sven! Thank you for sharing
@Value-Investing
4 жыл бұрын
Thanks!
@SergiMedina
4 жыл бұрын
My favorite REIT’s are: Realty Income - O, Main Street - MAIN, Arbor - ABR and Ares - ACRE.
@josephbrito2991
5 жыл бұрын
Steven, check out AFIN before your next video. This REIT is trading 30% below book value and pays 10% annual dividends. They deal with as freestanding single-tenant properties that are net leased to investment grade and other creditworthy tenants and a portfolio of multi-tenant retail properties consisting primarily of power centers and lifestyle centers. Their properties are leased to service retail companies such as Dollar General, AutoZone and Lowe's, so it should do well even in a recession.
@Value-Investing
5 жыл бұрын
Thanks for sharing
@teofagalderobinson5596
Жыл бұрын
Good evening Sven, thank you for the amazing job. I was wondering if you have any good advice or reading to learn how to better evaluate REITS, that would be intresting to find opportunities. Best regards
@jonathanhill1058
5 жыл бұрын
I love your analysis Sven! I've gotten really excited about real estate lately, and I'll keep this idea in my back pocket for if/when we see historically 'normal' interest rates again.
@JoseResGloStocks
5 жыл бұрын
I have CA Immo. Offices in Berlin Frankfurt Munich Berlin Prague Bucharest Budapest. Growth!
@anthonypeltier4039
5 жыл бұрын
What about berlin
@JoseResGloStocks
5 жыл бұрын
anthony peltier anthony peltier real estate berlin is in trouble. But office market no. There are project to freeze lettings and expropriates tenants. But office market is out of those projects
@ciph3rwolf345
2 жыл бұрын
The problem I have with REITs is taxation. I've mitagated this by sheltering those in a Roth IRA. I don't mind as I am holding them for the long run.
@Value-Investing
2 жыл бұрын
yes, that is an issue, especially for global investors!
@joaodaniel69
5 жыл бұрын
Thanks for the nice lesson on REITs dear professor Sven. In my country it is all way overvalued at this time, crazy to say the least, even when they have no intrisic value. But real estate and banks here are doing it again. No lesson learn from 2008. But maybe you can find a different scenario elsewhere with hidden future value.
@AteusXReligiosos
5 жыл бұрын
João Daniel where are you from? Brazil? Portugal?
@AteusXReligiosos
5 жыл бұрын
Sou brasileiro e vejo exatamente o que você vê no nosso atual mercado de fundos imobiliários. P/VP bizarros de 1,5... nenhum sentido. E um frenesi e euforia enormes.
@joaodaniel69
5 жыл бұрын
@@AteusXReligiosos Portugal... Crazyness... already expecting many Millenials going down the drain when shite hits the fan
@AteusXReligiosos
5 жыл бұрын
João Daniel millenials are losing money in Bitcoin, Ponzi schemes and stuff like that ☹️
@yiehom8166
3 жыл бұрын
2007-2009 was not about prices, but about defaulting buyers due to loans too generously granted.
@deeppatel9119
5 жыл бұрын
Thank you again for easy and clear explanation 😄
@Value-Investing
5 жыл бұрын
happy to help
@ericgamliel8500
5 жыл бұрын
Wonderful, Sven. Thank you! Looking forward to the next lesson.
@jonnes__4657
5 жыл бұрын
Sven, I have been waiting for this Video, thx! Are REITs like Bonds in a big bubble? Now, after the 180 degrees change in the interest reates, the REIT prices exploded again. .
@anthonypeltier4039
5 жыл бұрын
Hard to say with precision because there are such widely varying structures within the reit world. Bonds tend to all be the same, save for the differing credit risks from firm to firm.
@idontnowachannelname
3 жыл бұрын
starting to watch your old videos!
@Value-Investing
3 жыл бұрын
enjoy!
@georgesideropoulos6704
3 жыл бұрын
Not sure if I am doing wrong here but I have a separate account where I have 100 REITs companies and I dollar cost average by putting approximately $2 each month to each company. I did this to diversify between REITs and to diversify among my other investment accounts. I plan not selling anything for at least 30 years. The reason I did this is because I see REITs as more risky investment and I cannot evaluate the same way as other companies.
@Value-Investing
3 жыл бұрын
REITs are tricky and depend on the REIT, interest rates etc.
@weihuang4590
5 жыл бұрын
For foreign investors who bought REITs in US, the tax of dividend will be withhold depends on the tax treaty between their tax resident country and USA, which is at the range between 10%-20% instead of the ordinary income tax rate. Additionally, Investors also need to pay ordinary income tax in their tax resident country. Investors from HK and Singarpo have the tax advantages as those regions do not have tax for investment income. Please correct me if I am wrong.
@rockface8097
5 жыл бұрын
You are correct in that it depends on your country. For example, in Canada you can hold U.S. REITs in your RSP accounts which are tax deferred because Canada and the U.S. have a treaty between them. You pay no withholding tax on dividends in those types of accts.(RSP/RIF). Conversely if you hold U.S. REITS in a non-registered acct. there is 15% withholding tax on the dividends paid at the time they are paid. This also applies to TFSA accts. ( Tax Free Savings Account). So I make sure I hold only U.S. dividend paying stocks including REITS in RSP accts. Until I max the RSP limits. Dividend paying Canadian stocks in TFSA acct. as well as some U.S. non-dividend growth stocks. In non-registered accts it’s best to hold qualified ( this means non-REITs) Canadian dividend paying stocks. In Canada currently in non-registered accts you are allowed up to $50,000 in dividends tax free per year per person ( spouse) = $100k per year tax-free dividend income as long as you have no other income.
@AteusXReligiosos
5 жыл бұрын
A big thanks from Brazil!
@salv236
5 жыл бұрын
a great and detailed video on REITs thanks for sharing, I invested in a REIT recently that focuses on Oil Enerplus corporation i performed a fundamental analysis the financials are quite good an increase in revenue and cash flow and good free cash flow yield.
@kianhoutan8730
5 жыл бұрын
Thank you Sven! Would love to hear your views on first REIT, a healthcare reit listed on the Singapore exchange.
@glennartist7633
5 жыл бұрын
sven , i bought your book modren value investing , its so easy to understand and much more practical than” the inteligent inveator “ .
@glennartist7633
5 жыл бұрын
i give one for my friend and he is a doctor because he find it hard to understand the inteligent investor so i give him your book and he say its much more eazier to understand
@Value-Investing
5 жыл бұрын
thanks, that is one reason I wrote it, Graham's book is great but written 50 years ago:-)
@citizenoftheyearCC
5 жыл бұрын
STOR & MPW is one of my favorite REITs
@Value-Investing
5 жыл бұрын
just doing research on MPW
@davedefrancesco2685
5 жыл бұрын
Mpw is my favorite
@muffemod
2 жыл бұрын
Historically REITs underperformed the S&P500 on a long time horizon. That JP Morgan chart is cherry picked during a time where S&P500 returns were 0% for a solid decade.
@Value-Investing
2 жыл бұрын
statistically not really cherry picked, just the last 20 years! And half of the time the S&P 500 does zero :-)) REITs however benefit from lower rates, that is correct!
@mckessa17
2 жыл бұрын
Absolutely true, REITs are a dividend trap. They are constantly going down.
@anthonypeltier4039
5 жыл бұрын
Chatham lodging trust is my long long long term holding in the reit world
@anastasiakonkova9400
5 жыл бұрын
Great topic!
@richardb7726
5 жыл бұрын
Thanks Sven, it’s nice to have an unbiased objective view on an investment. That’s the strength of your investment platform, just an unbiased cool headed opinion on stocks. Oh and also well analysed Just a thought, be aware, in the UK a number of data storage, 5g properties are based in deprived areas and receive tax and local council benefits for helping the local economy. Its sounds great to have a hi tech data warehouse in your local area. However, some have been targeted by the taxman as scams, empty shells and one or two high profile celebs have been caught out having been advised to invest in “tax efficient” schemes. My point is such property types, with tax incentives to invest, might have higher rental yields than the reality of a empty warehouse in a run down area, if such a loophole is closed in the future or reduced. In my view, never invest in a company that relies on subsidies to make a profit. A subsidy should be icing on the cake
@Value-Investing
5 жыл бұрын
Thanks for sharing Richard
@petejames1326
2 жыл бұрын
@@Value-Investing if the FED raise % rates 4 times in 2022 REITS will probably fall wont they? that will be the time to buy right?
@evni6208
5 жыл бұрын
Awesome never digged into to REITS
@jesselivermore2291
5 жыл бұрын
hi sven can you do a video on whats the best kinds industries as a bussyness cycle passes? financials, industrials then growth stocks, defensive stocks, reit etc very appreciated. thank you.
@Value-Investing
5 жыл бұрын
there is no best industry, just best business and you find those by looking into any industry
@bryanangstman2098
5 жыл бұрын
Thank you!
@leverage2279
2 жыл бұрын
Good day Sven 🙂 You said in the video that we should first dig into a Reits' debt files to see if it is not risky. But what should be our basis in order to know if a Reit has risky debt?
@Value-Investing
2 жыл бұрын
there is no basis, you have to understand if the specific REIT can get into trouble with financing, if financing dries up, gone.. depends on the REIT hard to categorize
@leverage2279
2 жыл бұрын
@@Value-Investing Please, would you make a video how you analyze if a Reits' financing is going to get into trouble? 🙂🙏
@leverage2279
2 жыл бұрын
Hi Sven, can you kindly explain how is it that the cost of money and the return on investment is what makes a Reit grow?
@Value-Investing
2 жыл бұрын
you borrow at 4% and rent out at 5%, the 1% is your gain!
@leverage2279
2 жыл бұрын
@@Value-Investing Thank you for replying almost immediately! I thought you don't reply in old videos, but you do! I'm interested in hunting good Reits these days, so that I will have something like a "golden goose".. I follow your advise that we have to separate our source of inco.e used for expenses from the investment portfolio that we want to compound iver the decades. But I don't want to manage a house that I would rent out, so I go for Reits 🙂 However, there is one mystery yet that I cannot solve regarding Reits (I hope you could help me solve it).. It's about Reit debts. In companies, we have the price to book value and certain other methods to see if a company's debt is sustainable.. Is it also applicable to Reits? Should we measure the Reits' price to book value and measure is a Reits' debt is sustainable? Or is it ok even if Reits have big debts? Since Buffett and Munger despise companies with big debts, I acquired their attitude.. I also feel uncomfortable investing in something that has a lot of debt, because Warren Buffett said it's usually the reason why a company goes down. So when it comes to Reits, what is the amount of debt that is small, what is the amount that is sustainable debt, and what is too much debt?
@pr4nk5tr
5 жыл бұрын
Data center and healthcare REITS look interesting.
@DeGolem
5 жыл бұрын
Great content
@michaelzwiener395
4 жыл бұрын
Interesting video to watch 1 year later. Simon Property Group looks like a real bargain at the moment.
@Imanplays
3 жыл бұрын
I hope you ended up buying it after you made this comment!
@HansMcGruber
5 жыл бұрын
Sven good stuff. I would like REIT exposure, but as u mentioned in the video they all have run up the last year. A lot of people are recommending popular REIT names that are near 52 week highs. Any bargains left out there? Just doesn't seem like a good time buy REIT's, but with Fed on pause, it could be? Hard to know
@Value-Investing
5 жыл бұрын
I do the research, then I know what is going on, and I buy when it hits my requirements, could also be once in the next decade. Never hurry when it comes to investing.
@HansMcGruber
5 жыл бұрын
@@Value-Investing Kind of a general, ambiguous answer, not particularly helpful Mr Ph D
@Noveshento
4 жыл бұрын
have you been looking at REITs? it has been hit pretty hard. Any thoughts on SPG and SRG?
@fossman03
3 жыл бұрын
Hey Sven, I am wondering if DCF based on FFO is a reasonable way to value REITs? I am looking at it as 'FFO is the predictable cash that the business produces for its unit holders', then compare the value of those cash flows against the current market price. Is there a downside to this approach?
@Value-Investing
3 жыл бұрын
AFFO is usually used, but just look at the cash they make for you!
@hugosalinasaliaga5266
5 жыл бұрын
...or you can invest in BRK which has matched those gains in the same time span. Although PSR has done better the past 15 yrs
@dumdumitru8536
3 жыл бұрын
What do you think about IQQ6 reit etf?
@AteusXReligiosos
5 жыл бұрын
Just for curiosity: in Brazil there is no tax into dividends for our REITs (here called "fundos imobiliários").
@Value-Investing
5 жыл бұрын
thanks
@christhuang911
5 жыл бұрын
Any idea on unibail rodamco?
@Value-Investing
5 жыл бұрын
not for now
@anilomjf
5 жыл бұрын
Hi Sven, It seems that the relation between interest rates and share price of REITS is not exactly as you described: www.reit.com/news/blog/market-commentary/reits-and-interest-rates-positive-shift-market www.investopedia.com/reits-thriving-as-interest-rates-rise-4571309 From the second link: Over the past 25 years, the total return of REITs in rolling four-quarter periods was positive 87% of the time when interest rates were also rising From the first link: REIT share prices generally rise as interest rates increase during periods of strong economic growth.
@Value-Investing
5 жыл бұрын
You can't look at short term correlations, REITs move on expectations, not on what happened.
@anilomjf
5 жыл бұрын
@@Value-Investing Ok. I will think a little bit more about all this.
@דניאלגליק-ו4ס
5 жыл бұрын
How’s Wpg ?washinhton prime group
@Value-Investing
5 жыл бұрын
give me some time:-)
@jaimelopez3101
5 жыл бұрын
Ohhh yeah! Prepare for the #dontsuemebro Meet Kevin Video. Either way, you will both benefit. Thanks for your great research.
@barryboots9369
5 жыл бұрын
Actually, dividends are pass through now and not income taxed. Just wanted to correct that :)
@kurtalder1622
3 жыл бұрын
In the US? Only 20% are pass through until 2025. You should still find a nontaxable account(roth IRA) like sven said
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