Real estate titans Sam Zell and Barry Sternlicht had been fighting over industrial real estate investment trust (REIT) Monmouth Real Estate Investment (MNR). After a protracted battle, the winning bidder turned out to be a surprising new entrant: Industrial Logistics Properties Trust (ILPT 5.81%). The little-known industrial REIT has agreed to buy Monmouth for $4 billion in cash, a huge deal, considering ILPT's size. Motley Fool contributor Matthew DiLallo takes a look inside ILPT's high-risk gamble in the hot industrial real estate space.
Comparing the just-out third-quarter 2021 results to the year-ago quarter makes it look like a heck of a year for hotel-focused REIT CorePoint Lodging (CPLG). But investors might well be looking at pre-pandemic Q3 2019 as a more apples-to-apples comparison than to the depths of the coronavirus-induced depression in this sector. Things are still not back to normal, and, as Motley Fool contributor Reuben Gregg Brewer points out, until a dividend is restored, only the most aggressive of investors should be considering this stock.
REITs are an attractive passive-income supplement to Social Security and other fixed benefits for many retirees. These publicly and privately held companies are required to pay at least 90% of their taxable income to shareholders in the form of dividends, which typically are higher -- often much higher -- than the income available from savings accounts and certificates of deposits. And some even pay monthly instead of quarterly. Motley Fool contributor Marc Rapport looks at three such stocks to consider: Realty Income (O 0.49%), AGNC Investment (AGNC 1.57%), and STAG Industrial (STAG 0.79%).
In today's news
- Fed survey finds consumer expectations rising for both wages and inflation
If you expect prices to keep rising in the year ahead, you're far from alone. The Federal Bank of New York says its monthly Survey of Consumer Expectations -- out today -- shows those expectations have reached a new high. The New York Fed says median inflation expectations increased by 0.4 percentage point to 5.7% at the one-year horizon, a new high in the survey's eight-year history. Inflation can present opportunity and/or peril to real estate investors, with much depending on regulator and market response alike. The same report found positive expectations about earnings growth and job loss risks, it's worth noting. A mixed bag here.
- $1.2 trillion infrastructure package heads for Biden's desk
It seems hard to think of $1.2 trillion as scaled back, but that's the case with the infrastructure package now headed for President Joe Biden's signature. That's still a huge amount of investment, of course, and calls for massive spending on asphalt and information highways and much more. Included is a $1 billion commitment to reconnecting neighborhoods divided by highway projects of the past. All this spending is bound to have some effect on commercial real estate of just about every conceivable type, from shipping port logistics to the corner convenience store.