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What does real estate have to do with AI?To shed some light on the potential of artificial intelligence (AI), and discuss the role of the supporting infrastructure enabling this boom, we were delighted to leverage the expertise of Eric Rothman, Portfolio Manager, Real Estate Securities with CenterSquare. CenterSquare is a dedicated real estate investment manager, with around $14 billion under management, and Eric has been with the company for 17 years. Before we explore the Nvidia story and the relationship between AI, data centres, and ‘new economy real estate’, let’s define what that latter phrase means. New economy real estate is supporting technological advancements, like AI What is ‘new economy real estate’? Eric noted that there is so much beyond the traditional ‘4 foodgroups’ of real estate: 1) retail 2) office 3) residential 4) industrial When CenterSquare defines the ‘new economy real estate’ space, Eric noted that the larger components include data centres, cell phone towers, and warehouses dedicated to new economy logistics—things like ecommerce fulfillment. This is far from traditional, industrial real estate. Some of the smaller segments include life sciences, cold storage, and office space that is uniquely tailored to technology tenants, typically located in specific cities with focused pools of technology talent. Such cities might be Seattle, San Francisco or New York. These types of ‘real estate’, most notably data centres, are vital to support growing technologies like AI. The Nvidia story—$1 trillion to be spent? There has been a huge amount of excitement and discussion around Nvidia as the stock has enjoyed overnight success on the coattails of the AI boom. ‘$1 trillion’ is a big number (and a nice headline), but it’s very difficult to forecast where generative AI will take us. Some people say it is like inventing the wheel or the personal computer. This is a big claim, and only time will tell. If people are thinking about ‘data centre REITs’ as an investment, they have to understand that data centres just fulfil the provision of power, cooling, and connectivity. The data centre REITs do not actually own the computers. The tenants invest in the computers. One thing that is absolutely true, however, is that as an owner, you love to see the tenants putting money into the space that they are renting. Why? This makes it less likely they are going to leave. Therefore, a greater investment in AI technology and computing power may be a positive signal for the supporting real estate (like data centres). Eric’s conclusion, whether thinking about the impact of generative AI on data centre REITs or cell phone tower REITs, was that the move in share prices hasn’t reflected where we could be going yet. Connectivity and data centres will be vital components for artificial intelligence, but it’s not yet clear how or when investors are going to reflect that in the real estate prices. Eric noted that investors frequently forget about the buildings until later in a cycle or a trend. Greater computing power = greater energy consumption? Another aspect that we discussed was energy usage. Eric estimated that newer AI-focused semiconductors draw more power, not just a little bit more power but a step change in power consumption. A chart from the ‘Decadal Plan for Semiconductors’, a research report by Semiconductor Research Corporation allows us to compare compute energy to the world's energy production. A critical point to keep in mind is that ‘something has to give’; simply continuing to add computational capacity without thinking of efficiency or energy resources will eventually hit a wall. However, if history is any guide, we should expect that, as demand and investment in computational resources increases, there will be the potential for gains in efficiency, improved model design, and even different energy resources that may not yet exist today. Since many investors may be less familiar with cell phone towers, Eric made sure to mention just how strong of a business model he believes this to be. Now, it’s true that these REITs have not performed well in the past 18-months, but we are right in the middle of the current 5G rollout. Tenants have long leases, there is lots of demand, and there are even consumer price index (CPI) escalators that increase the rent to be collected. Conclusion: a different way to think about real estate It was great to be able to spend some time speaking with Eric and to learn about what’s happening both in the broader real estate market as well as in the more specific, new economy, ‘tech-focused’ market. The full discussion is accessible on behind the markets podcast This material is prepared by WisdomTree and its affiliates and is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. The opinions expressed are as of the date of production and may change as subsequent conditions vary. The information and opinions contained in this material are derived from proprietary and non-proprietary sources. As such, no warranty of accuracy or reliability is given and no responsibility arising in any other way for errors and omissions (including responsibility to any person by reason of negligence) is accepted by WisdomTree, nor any affiliate, nor any of their officers, employees or agents. Reliance upon information in this material is at the sole discretion of the reader. Past performance is not a reliable indicator of future performance.
SPARKS:AIX
by aneekaguptaWTE
1
Inv H &S with Vukile showing strong upside soon to R16.51Inv Head and Shoulders seems to be forming with Vukile Property. We have recently had a breakout out of the downtrend and now there seems to be a consolidation of some kind. I expect the range to form somewhat a Right SHoulder, before the next up side is imminent. 7>21 Price>200 RSI >50 Target R16.51 ABOUT THE COMPANY Vukile Property Fund is a South Africa-based Real Estate Investment Trust (REIT). The company was established in June 2004. Vukile is listed on the Johannesburg Stock Exchange (JSE) and the Namibian Stock Exchange (NSX). It focuses primarily on the acquisition, management, and development of retail properties, specifically shopping centers. Some shopping centers include: East Rand Mall - Boksburg, Gauteng Pine Crest Shopping Centre - Pinetown, KwaZulu-Natal Meadowdale Mall - Germiston, Gauteng Dobsonville Shopping Centre - Soweto, Gauteng Randburg Square - Randburg, Gauteng Hammersdale Junction - Hammersdale, K The company had a strong presence in South Africa and Spain. In South Africa, Vukile's portfolio is predominantly retail-focused, with a wide range of assets across provinces. In Spain, the company operates through its subsidiary Castellana Properties, owning a substantial retail portfolio. Vukile's strategy involves maintaining a diversified property portfolio to mitigate risk. The company is committed to the principles of good corporate governance and ethics. Vukile also focuses on sustainability initiatives, striving to limit the environmental impact of its operations. HOW IT GOT ITS NAME "Vukile," it's derived from the Zulu language and generally translates to "stand up" or "arise". This name may reflect the company's commitment to growth and development, as well as its South African roots.
JSE:VKELong
by Timonrosso
Grand City Properties: Oversold dusted jewel? Maybe not yet.Back in Oct 13, 2022 I made this analysis: Compared to Vonovia, Grand City has a double better debt position than its big competitor. Earnings payout are 23% and cash payout 64%. Vonovia's respective figures are 67% and 61%. Debt quity ratio at 57% is highly different from Vonovia's at 117%. Grand City may experiment higher costs of debt refinancing in 2023 but not as much as Vonovia in relative numbers. Grand City is able to breath better within this whole interest rates hike environment than mostly any other REIT. Sometimes, it's better to aim at 1,5B valued companies than 15B valued ones. But then, on March 16th, 2023 GYC presented its FY 2022 results. And my analysis changed to this one: Unfortunately, Grand City decided not to pay 2022 dividend due to macroeconomic uncertainty. The results were somewhat weak even though positive. I see GYC going down to 4.42€ in the next months. Better to avoid January and February 2013 lows were around 4.42€. Current PER is 9.51 and dividend yield has been cut to 0% in 2022. Interest rates keep rising at the moment and before the SVB, FRC, Credit Suisse fall; investors thought they would go up until 5.5-6%. Even though debt is lower than its bigger competitor Vonovia and according to GYC website the company’s debt have a 95% interest hedging ratio, which is expected to reduce to 91% as some interest rate hedging matures throughout 2023; in an environment of increasing interest rates, investors could switch from REITs to bonds. The fact that GYC cut its dividend to 0, may look very disciplined and responsible. But a REIT who does not pay dividend is no longer attractive in my opinion. Whether it will be at 10-15€ in the next 4-5 years, that depends on: inflation stabilisation, interest rates beginning to drop at comfortable levels (1-3%), reduced banking crisis uncertainty and reduced recession fears, among other factors. It's also important to track the FFO and AFFO and compare these two metrics with competitors in order to see if the stock has been oversold or overbought. If Central Banks stop raising interest rates or inflation drops further, then REITs will be one of the first sectors to recover as they may be experiencing overselling. When I analysed GYC back in Oct, I saw good fundamental reasons to invest in it. Macroeconomic uncertainty is now overweighting those fundamental reasons. But when every aspect in the macroeconomic environment seemed to doom the expectations of GYC stock, I analysed the fundamentals of the company: Analysis FY 2022 results: Net Debt/EBITDA = 11.4x. AFFO diminished -1.26%. FFO/per share +3% at 1.14€. P/FFO (Today) = 7/1.14 = 6.14. Guidance FY 2023 FFO/share to decrease -13.16% max to 0.99€/share. P/FFO (2023e) = 7/0.99 = 7.07. Sector P/FFO for Residential REITs in US has been moving steadily between 17 and 25 in 2010-2018 period (S&P Global Market Intelligence, Nareit 2018). GYC is clearly undervalued already. Technical aspect doesn’t show any signs of recovery yet. RSI(14) suggesting completely oversold but selling volume keeps increasing. CONCLUSION We may be set to turnaround very soon on GYC. However, the fact that a REIT does not pay dividends is something clearly penalising the stock value. Therefore, I would still wait and see how the market develops and if GYC reaches 4.40€ level, maybe it could act as a historic support level from January 2013 and bounce back upwards from there.
XETR:GYCShort
by alexinve
As a Matter of Fact - Metaverse Is Here To StayThis was a 2021 Bubble Darling, where all the low-tech Boomers were battling hand over fist to put Liquidity in. Now that its under 1 billion market cap, the additional downside is very minimal... perhaps $2.00 The upside for a reflexive short squeeze is appealing. This company has strong name recognition and an understandable narrative to sell. $3.10 spot at post look to exit at $5.50 or let it run more Our identities have no bodies, so, unlike you, we cannot obtain order by physical coercion. We believe that from ethics, enlightened self-interest, and the commonweal, our governance will emerge.
MLong
by noam_chom
BSRTF a low cap reit with room to growHere we have a low cap REIT that I can see will grow into the billions (one day soon, but not so soon as I would like). Immigration has ben slow these last covid years but that tide is turning now so Texas should grow. California is expensive and people are moving to Texas so it should grow. Tesla and other companies are moving to Texas so Texas should grow. Work from anywhere culture is moving to Texas so Texas should grow. People need places to live, Shopping centers need ten year leases to build out Lows, and Target stores, to service these new people. From a chart technical standpoint I would like to see another bounce or retest the lows of the price of this company. If I do see a retest am buying more. There is a gap that has yet to be filled further down from here from way back in 2020. That does not mean it needs to get filled, but if it does, I am buying more. A friend of a friend works at this company and he is smart and his friend is smart and believes the management is smart. REIT's are not in favor right now - the large interest rates have scared off some investors, but those rates might come down, so the first to buy land with variable interest rate loan will have the refinancing build right into the loan. Imagine your interest rate falling every year of your loan for the first five years? That is what I would do if i worked at this company. If you buy a house for 1 million and the interest rate is 7% the note will be a monster, but if that rate falls to 3.5% over several years you will be happy and the interest payments will be cut in half. Take the other half of that interest payment and put it in escrow to save up for a downpayment on a new property. The investment will grow in value as the price of that interest payment will be factored into the assessment of your property and all the properties in the neighborhood. A year from now you could leverage the value for the property to buy more property. That is what I think these guys are going to be doing for the next few years. That is why I will buy the dip if there ever is one.
OTC:BSRTFLong
by altcoinnerd
GEO: Michael Burry bought more GEO Michael Burry has bought more shares of this REIT so I thought I'd give a look at the chart for those who want to follow him. What the chart is saying: Big downtrend since May 2017. In May 2021, the stock has started a consolidation/base in form of a range between 5.5 and 9.54. This range could be a bottom formation. Note that bottoming pattern takes time and this one could continue for a few more weeks/months. However a break out of the range (9.54) could confirm a change of trend and a long trade/investment. Keep monitoring this stock in the next few days/weeks, set an alert at the top of the range. If it breaks out of the range, the first potential targets are 11, 13.90 and 17. I remain neutral for now. On watch.
NYSE:GEO
by Elpidaldo
10
Real Estate Blue Chip SPG Simon Property“This is the paradox of public space: even if everyone knows an unpleasant fact, saying it in public changes everything. One of the first measures taken by the new Bolshevik government in 1918 was to make public the entire corpus of tsarist secret diplomacy, all the secret agreements, the secret clauses of public agreements etc. There too the target was the entire functioning of the state apparatuses of power.” Simon Property Group seeks hyper-privatization of property, by which they can expand their capital and power network Political outcomes will drive the future for this corporation. Midterms of 2022 will be a catalyst to the upside, but then 2024 presidential cycle holds the true power.
NYSE:SPGLong
by noam_chom
Long GEO Group niche REIT - cool ticker, book valueThe cliche about prison life is that I am actually integrated into it, ruined by it, when my accommodation to it is so overwhelming that I can no longer stand or even imagine freedom, life outside prison, so that my release brings about a total psychic breakdown, or at least gives rise to a longing for the lost safety of prison life. The actual dialectic of prison life, however, is somewhat more refined. Prison in effect destroys me, attains a total hold over me, precisely when I do not fully consent to the fact that I am in prison but maintain a kind of inner distance towards it, stick to the illusion that "real life is elsewhere" and indulge all the time in daydreaming about life outside, about nice things that are waiting for me after my release or escape. I thereby get caught in the vicious cycle of fantasy, so that when, eventually, I am released, the grotesque discord between fantasy and reality breaks me down. The only true solution is therefore fully to accept the rules of prison life and then, within the universe governed by these rules, to work out a way to beat them. In short, inner distance and daydreaming about Life Elsewhere in effect enchain me to prison, whereas full acceptance of the fact that I am really there, bound by prison rules, opens up a space for true hope. if there ever was such a thing as no-brainer easy money this is it. Republican sweep up in the November Primary is what the market will begin to front-run this summer targets are potentially conservative. Real Estate and Construction costs are already massively inflated, the market has not yet revalued the enterprises like GEO Group short squeeze can happen here if the retail cohort swarms it
NYSE:GEOLong
by noam_chom
AGNC new bottom?Here we have a MONTHLY chart for $AGNC, a mid-cap monthly paying dividend REIT (Real estate investment trust). As you can see we breifly wicked to this price before and if you switch to a daily chart there is some evidence for a recovery. That being said, with the increasing rates from the FED, housing prices starting drop as demand lowers, and combined with higher material cost for building homes (starting to shrink), it seems likely we'll see a bear rally, followed by another "bullwhip effect", particularly driven by new homes or lack there of. If you google, "is agnc a good stock to buy", the analysists expect it to reach "$11.86 by Oct 5, 2023" which means you'd effectively double your money in a year, while also receiving ~$12/month for every 100 shares (~$800). Although I disagree and suspect that AGNC will be at best ~$9-10 by that date, I still feel like that this is a great time to SELL PUTS as a means to get paid to DCA into the stock. That being said, I could see the stock reaching as low as $5/share so be careful and DYOR...
NASDAQ:AGNC
by livingdracula
DBRG is taking SWCH private? What now?Well, right after data center infrastructure stock SWCH announced solid 1st quarter earnings results, we get an announcement that it's going private. DBRG and IFM Investors are taking it private for $11 billion. Shareholders will get $34.25 per share on the transaction. The price action gapped up to around that level and it will stay in this range until the transaction is complete and SWCH shares disappear from the exchanges. This looks like a good thing for SWCH fundamentally, as the company continues to expand its data center capacity. You need investors to keep buying up land for data center infrastructure. Solid Revenues and Net Income growth make the purchase a sweet deal for NYSE:DBRG and IFM, which is not publicly traded. But don't go running to buy the REIT DBRG just yet. It's taking a dive like most other large caps. And an acquisition is a costly thing for any company--this can put a dent in the trend of the share price. Like I've been writing throughout the index correction: WAIT for the bottom to develop. Most traders and investors are just impatient. If you'd just wait for it... Thanks for reading, hope you learned a little something. Visit my website to learn more.
NYSE:DBRG
by MarthaStokesCMT-TechniTrader
REITs looking bearish across the sector. H&S setups galoreFirst noticed this when I was scouting $ABR as a potential candidate for puts. I was looking for H&S setups, and liked the look of it. If you look at $ABR chart (daily or weekly) I imagine you'll see what I mean. Looks like we're peeling off the 20MA on the 1D to the downside. (Earnings are tomorrow, as a heads up) But yes, this led me to look at other names in the sector to try and add to my overall conviction. And I found that while some have already made their move to the downside - I also found a bunch of tickers that seem like they're on the cusp of breaking down Apart from $ABR the other names I'm looking at for moves toward downside in the sector are $O and $UDR . $O especially. In terms of more of a 'macro' view this year I think with increasing interest rates, inflation through the roof etc. I think real estate sector is going to feel some notable pain this year. But of course, theories only mean so much, let's just focus on the chart setups as/when they come. For now, the sector looks bearish The options I'm personally trading currently are: $ABR Mar 18th '22 $17.5p (cost basis 2.51) and $O Mar 18th '22 $67.5p (cost basis 2.05) Posting this moreso to draw attention to the sector in general, rather than my exact personal plays necessarily. Hence using $SCHH as the image for this 'idea' so people can see the sector overall. Note the rejection/inability to breach the 20MA on the weekly. I think this thing could sag and fold over. Hope this is helpful to some! And as always, please let me know your thoughts/comments if you have any! I'm always open to new ideas, viewpoints and constructive criticism etc.
AMEX:SCHHShort
by llbtrader5
1
PINE: Short (signaled by 3 indicators)Alpine Income Property Trust, Inc. is a real estate company, which owns and operates a portfolio of single-tenant commercial properties. The company was founded on August 19, 2019 and is headquartered in Daytona Beach, FL. Recent News (nontechnical analysis): Dec2: Alpin Sells $24.5 Million towers; Dec 3: Falling asset prices Moving Average, MACD, and RSI indicate resistance has been reached a price decrease + volume decrease is on the way in the coming days.
NYSE:PINEShort
by lydiascherr777
CTRE (BUY) - Entrance + Exit StrategyCTRE is a REIT focused on adult care facilities. Overview beyond the technical analysis: In the past, CTRE it has been recommended by highly experienced real estate attorneys as a long-term REIT for holding/dividends. Given the aging boomer population and focus on healthcare amidst the pandemic, this REIT stands out from others. Technical Analysis: CTRE is approaching a golden cross in the coming week. Even if history does not repeat, it often rhymes. 2 of the 3 previous golden crosses for CTRE have resulted in 60% increase over the period of several months. At the current price point, CTRE may be able to expect new ATHs in 2022.
CLong
by lydiascherr777
ALX - Rising Revenue is Not Enough Alexander's, Inc. operates as a real estate investment trust. The firm engages in leasing, managing, developing, and redeveloping its properties. Its operating properties are located in the greater New York City metropolitan area. The company was founded on May 16, 1955, and is headquartered in Paramus, NJ. Despite some nontechnical indicators (i.e rising revenue & location), ALX seems positioned to continue losing value. Fibonacci retracement from the previous All-Time High (ATH) is in a "red" zone, the lowest level of support in the trend. This could indicate "nowhere to go but up." So I decided to test that hypothesis with two indicators: 1) RSI and 2) Bollinger Bands. Both indicators insinuate an imminent downward price trend. Entry: After support level at the time of publishing is broken. Exit: After 5% -10% drop in price
NYSE:ALXShort
by lydiascherr777
$COR: A CORE Position For A Deflationary Environment?Real Estate has seen some specific winners starting to emerge, however, as the Fed soon begins the tightening process, is it possible we still see more in the tank for IYR (REIT ETF) as the Dollar continues it's rally? Keep in mind, a rate hike currently isn't priced in until July of 2022 and the inflationary pressures have been strong but with some patience on the REIT investor's part. I do believe the company could be primed to make an early run before a defensive cycle emerges. I'll scale in and manage risk based on price / sentiment toward the defensive names as a whole.
NYSE:CORLong
by Fox_Technicals