I have been intensively involved in the real estate sector and have discovered some supposedly exciting companies such as

$SPG (+0.22%)
$GLPI (+0.23%)
$CUBE (-0.11%) and $BRX (+0.89%) discovered.

But there are special features to the valuation of REITs. 🧐

Traditional key figures such as high returns on capital or margins are often misleading, as REITs are legally obliged to distribute at least 90% of their taxable income 🤑 and are also highly leveraged.

In order to better assess REITs, I have read up on the subject and adjusted my valuation standards. Instead of adjusted earnings, I now focus more on funds from operations (FFO) and adjusted funds from operations (AFFO), which more realistically reflect operating profitability.

Here are some of the companies that I find particularly interesting:

• Public Storage $PSA (-0.87%) Leading provider in the self storage segment with an FFO yield of approx. 5.9%

• Prologis $PLD (-0.79%) Global leader in logistics real estate with strong growth

• Equinix $EQIX (+0.22%) Data center operator with a scalable business model

• Agree Realty $ADC (-0.57%) Focus on retail properties with long-term rental agreements and an FFO yield of approx. 5.7 %.

I also see Energiekontor $EKT (+2.81%) as an alternative real estate investment 🤓. Energiekontor currently operates 39 of its own wind and solar parks, which generate electricity revenues instead of rental income.

Which companies do you see as particularly promising for a long-term investment?

Hello everyone,

Here is my January Rewind for 2025.

My time-weighted return was 5.75%, which was a good bit better than the S&P 500, but also a good bit worse than the DAX. I would never have expected this at the beginning of the month, and it was surprising that the DAX took off like this.

According to Getquin, I was therefore better than 51% of users.

I received 5 dividends.

From Renasant $RNST (-0.36%)

From Mondelez $MDLZ (+0.12%)

From Pepsico $PEP (-1.16%)

From Agree Realty $ADC (-0.57%)

And from JPMorgan $JPM (+0.35%)

I myself am absolutely satisfied with my performance, with 5.75% a more than successful start to the year. Especially when you consider that the average return on a global ETF is around 8 or 9% a year.

How did your January go?

⚠️US-PCE inflation report for January 2024:

• The PCE (Personal Consumption Expenditures) Price Index is the Federal Reserve's preferred inflation measure, reflecting changes in consumer spending on goods and services
• Ex. REITs (Real Estate Investment Trusts) from FED

📈 Immediate reaction:

• Equity futures 📈
• US dollar 📉
• Bond yields 📉

✨ Core PCE prices rise:

The Fed's preferred inflation indicator, US Core PCE prices, rose 2.8% Y/Y, in line with expectations and slowing from 2.9% in December. This is the lowest annual reading since March 2021.

📉 Headline PCE inflation:

Increase of 2.4% Y/Y, hits estimates, following a 2.6% rise in December. This is also the lowest level since March 2021.

🔢 Monthly changes:

US PCE prices rose 0.3% M/M, in line with estimates. US Core PCE prices also increased by 0.4% M/M, in line with expectations.

🔑 Main finding:

The slowdown in core PCE inflation is good news for the Federal Reserve.

🚀 However...

...US inflation continues to rise much faster than the Fed's target of 2%.

🧐 Core inflation remains stubborn:

It is likely to remain well above the Fed's target for the foreseeable future. The Fed's fight against inflation is therefore far from over.

💡 Perspective:

Contrary to market expectations of a rate cut in June, I believe a cut is unlikely to come until late Q3 as inflation is taking longer than hoped to return to the Fed's 2% target.

Source:

• https://www.bea.gov/data/income-saving/personal-income

_____

Digression:

Headline PCE inflation captures all categories of personal spending by measuring the average price change for all goods and services purchased by consumers for consumption purposes. This comprehensive view makes it an important indicator of overall inflation in the economy.

$O (-0.52%)
$ADC (-0.57%)
$VICI (-0.97%)
$NNN (+0.64%)