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Subject:  Re: REITNUT 50 year portfolio review Date:  4/17/2019  6:34 PM
Author:  JimLuckett Number:  84653 of 86719

Thanks for the update, Yoda.

I wonder what Ralph would pick today for a 50-year portfolio. PLD instead of SPG? He liked the new edition of PLD after the merger with AMB. Or maybe he would still pick SPG despite all the death-of-retail talk. Myself, I would be tempted to pick a triple-net REIT, (O, NNN or STOR). He didn't often recommend triple-nets, but he did put us onto STOR when that first came along.

I wondered about there being no office REIT in the 50-year portfolio. Then looking back over old emails from him I found a comment in October 2015 that there were almost none he liked. So that explains that. That email had a nice roundup of his favorite REITs for the core of one's REIT portfolio, so I'll quote it here:

"I regard core REIT holdings meeting your criteria as: AVB, EQR, ELS, VTR, HCN, EGP, PLD, ARE, MAC, SPG, AKR, FRT, KIM, REG, ROIC, CUBE, EXR and PSA. I own all of them except EQR, and they all have excellent management and balance sheets. BXP may fit in there, somewhere, but I have been disappointed with them for the last couple of years; they are not the BXP of old, due to management changes.

I can think of no other office REIT I would include, except perhaps for HIW (ARE is really lab space, not so much “office”).

PSA has had the wind at its back, as self-storage is an excellent property type and was undervalued for a long time. I love this sector, although it’s no longer dirt cheap.

I still like DOC for a small position while we wait to see how management performs. A newer one for me, which is a fairly new REIT, is STOR. I think the management team, which has ample experience and expertise, is top notch. I own a lot of STOR despite it being a fairly new REIT.

Hope this helps.



Reading the original REITnut/Yoda post sent me scurrying to read up on that tax credit

The retirement savings tax credit is up to a maximum of $2,000 credit to match a $2,000 contribution on a joint return. That would only be for a married couple making less than $38k AGI (in 2018), with at least a $2,000 tax liability and $2,000 they could afford to sock away in an IRA. Seems like that would be a pretty small set of people. Smaller percentage matches are available up to a joint $64k AGI. Any type of IRA, 401k, 403b qualifies. Credit is not refundable.
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