Favorite REIT/Pipeline/Dividend Names

[BG2008]

A lot has happened recently to the REIT space. Large cap MF REITs like $MAA and $CPT have rerated higher. REITs in general have benefitted from lower rates, or anticipation of lower rates. 

 

What are your favorite REIT, real estate holdco, pipeline, and other hard asset names that own real assets and/or pay dividends?  

 

Tagging @realassetsvalue @thepupil @Gregmal @Spekulatius 

[BG2008]

This is what I like today 

 

Grocerry Anchored Shopping Centers $ROIC $REG $IVT $WSR 

RE Holdcos SOTP with capital return - $AIV 

Set it and forget it - $FRPH 

Opportunistic - $CLPR and most levered to rate cuts 

Back $HHH for a hot minute now that the "headaches" have been spun off 

 

 

[rogermunibond]

GAB-PK or any of the Gabelli Equity Trust preferreds

 

Looking at COF-Pj too

[hasilp89]

1 hour ago, BG2008 said:

Back $HHH for a hot minute now that the "headaches" have been spun off 

are the headaches a buy at a certain price for you? ($SEG)

Edited September 4 by hasilp89

[Gregmal]

Wish I could be a helpful participant here but I’m still just rolling with the same 5/6 I’ve been riding with for years now. I really haven’t found too much by the way of new ideas recently, although it’s likely cuz I haven’t been looking very hard.

[BG2008]

3 hours ago, Gregmal said:

Wish I could be a helpful participant here but I’m still just rolling with the same 5/6 I’ve been riding with for years now. I really haven’t found too much by the way of new ideas recently, although it’s likely cuz I haven’t been looking very hard.

 

@Gregmal what are those 5-6 names? I know JOE is obviously one, but I haven't been stalking you like I used to. 

[Gregmal]

Joe, msg (e+s), Nintendo, Fairfax, aiv and FRPH 

 

Im not worth paying attention to anymore lol. I just sit on my ass and buy dips versus a lot of the stuff I used to do. 

[bizaro86]

One that's sort of interesting that I haven't seen much on is Acadian Timber. Canadian corporation, 6.7% yield. Formerly a Brookfield yield-pig vehicle, owns east coast timberland. Historically didn't cover their dividend, but they've started selling carbon credits, that based on what I can tell require no changes to their operations. Adds a very high margin new income stream and appears that the divi will be very well covered going forward. Symbol is ADN in Toronto.

[BG2008]

11 minutes ago, bizaro86 said:

One that's sort of interesting that I haven't seen much on is Acadian Timber. Canadian corporation, 6.7% yield. Formerly a Brookfield yield-pig vehicle, owns east coast timberland. Historically didn't cover their dividend, but they've started selling carbon credits, that based on what I can tell require no changes to their operations. Adds a very high margin new income stream and appears that the divi will be very well covered going forward. Symbol is ADN in Toronto.

 

Still controlled by Brookfield? 

[thepupil]

You pretty much know what I own…I’ve been taking a hard (and skeptical) look at DEA. I think the divvy is sustainable and that if the stock goes up they can accretively issue and then f those assumptions are correct you have an 8% yield from long duration government guaranteed cash flows.

 

they’re empire builders so lots of path dependency on stock price and cost of capital etc.

 

id they can’t make it work and cut the divvy by a 1/3 or something and the stock went down a lot, I’d be all over it. It’s kind of in this purgatory where it needs to go up or down 30% for me to like it.

Edited September 5 by thepupil

[bizaro86]

1 minute ago, BG2008 said:

 

Still controlled by Brookfield? 

 

Nope. That would be a deal breaker for me, I don't buy their subs because I don't trust them. 

 

They sold out in 2019. Although the major shareholder is named Cockwell, which is maybe Brookfield adjacent.

[Gregmal]

I would add though I have a smidge of ATT along with stuff like my Pupilbonds. T seems like just a really easy way to ride the next wave. What V, ARE, GOOG, COST, etc were during the previous decade of more or less 3 or lower interest rates, I think the stuff like T and general gist of @BG2008s topic idea here, is what is gonna rock out and be your marginable money makers for the next 3-5 years at least. 

 

Also maybe fitting this is WEN which I bought recently as well. 

[rkbabang]

Things I own that fit:  Most I've owned 3=5+ years with dividend reinvestment on.  PRBA/EC/GENGF for about a year and WEN just recently (thanks Gregmal):

 

REITs that I own:  SEVN, AIV, FRPH

Pipelines: WMB

Dividend:   PRBA, EC, NVEC, GENGF, BAM, and recently added a little WEN.

 

[MikeL]

On 9/4/2024 at 8:53 PM, bizaro86 said:

One that's sort of interesting that I haven't seen much on is Acadian Timber. Canadian corporation, 6.7% yield. Formerly a Brookfield yield-pig vehicle, owns east coast timberland. Historically didn't cover their dividend, but they've started selling carbon credits, that based on what I can tell require no changes to their operations. Adds a very high margin new income stream and appears that the divi will be very well covered going forward. Symbol is ADN in Toronto.

 

Any concern the chairman Malcolm Cockwell is the son of Jack Cockwell, current BAM board member?

 

https://brookfield.substack.com/p/selling-assets-to-family

[Dinar]

Jack Cockwell is the architect of Brookfield.  Was the sale of Brookfield's stake an arms-length transaction?

[bizaro86]

2 hours ago, MikeL said:

 

Any concern the chairman Malcolm Cockwell is the son of Jack Cockwell, current BAM board member?

 

https://brookfield.substack.com/p/selling-assets-to-family

I mean, that's why I said "Brookfield adjacent". He's owned the stake for 5 years and capital allocation has been fine. I probably would have cut the dividend and started repurchasing shares instead but that's not a big issue.

 

Wouldn't be my first choice for major owner but I think it's probably fine.

[bizaro86]

2 hours ago, Dinar said:

Jack Cockwell is the architect of Brookfield.  Was the sale of Brookfield's stake an arms-length transaction?

 

The Cockwells paid fair-ish value for the stake - it was publicly traded at the time and they didn't get a discount or anything like that. I'm not qualified to judge how the negotiations between the Cockwells and Brookfield went down, and to be honest I don't really care.

[Dinar]

7 hours ago, bizaro86 said:

 

The Cockwells paid fair-ish value for the stake - it was publicly traded at the time and they didn't get a discount or anything like that. I'm not qualified to judge how the negotiations between the Cockwells and Brookfield went down, and to be honest I don't really care.

Generally control trades at a premium.  You should care because if Cockwell was happy to screw Brookfield shareholders, he will be happy to screw you too!

[KJP]

19 hours ago, rkbabang said:

Things I own that fit:  Most I've owned 3=5+ years with dividend reinvestment on.  PRBA/EC/GENGF for about a year and WEN just recently (thanks Gregmal):

 

REITs that I own:  SEVN, AIV, FRPH

Pipelines: WMB

Dividend:   PRBA, EC, NVEC, GENGF, BAM, and recently added a little WEN.

 

 

On pipelines, WMB has irreplaceable assets and expansion opportunities so no criticism of it from me, but if someone is interested in big pipeline companies and can deal with a K-1, I would also look at Enterprise Products Partners (EPD) -- shareholder alignment, lower valuation, lower leverage, better debt profile, better tax characteristics, and significant expansion opportunities.  Perhaps more controversially, I also think EPD management is more candid than WMB's about the other key variable -- returns on incremental invested capital. 

[rkbabang]

30 minutes ago, KJP said:

 

On pipelines, WMB has irreplaceable assets and expansion opportunities so no criticism of it from me, but if someone is interested in big pipeline companies and can deal with a K-1, I would also look at Enterprise Products Partners (EPD) -- shareholder alignment, lower valuation, lower leverage, better debt profile, better tax characteristics, and significant expansion opportunities.  Perhaps more controversially, I also think EPD management is more candid than WMB's about the other key variable -- returns on incremental invested capital. 

 

 

Agreed.  I've owned EPD in the past.  Being sick of the the K-1 was the reason I sold it when I was looking for funds to put into something else.   Right now I don't have any partnerships with K-1 forms.  

[bizaro86]

2 hours ago, Dinar said:

Generally control trades at a premium.  You should care because if Cockwell was happy to screw Brookfield shareholders, he will be happy to screw you too!

 

I think it's at least as likely that Brookfield took advantage of Cockwell here. While the $17 he paid was market price, I think it was quite overvalued at the time. It was propped up by an unsustainable dividend in a market with low interest rates. Cockwell was buying it for his son, a professional forester, so may have been less price sensitive. Five years later they still trade at $17, after a structural change in New Brunswick timber pricing structure and the carbon credit announcement. I think the intrinsic value has gone up quite a bit since then, but the stock price hasn't moved, partially because it was overvalued at the beginning. This was getting propped up by its unsustainable dividend and Brookfield sold it to an insider who wanted (imo partially for non-economic reasons). I don't think the Cockwells are saints by any means, but I don't think their ownership is disqualifying. Especially in a thread about yield vehicles - I think they're probably par for the course among self interested real estate managers. They're not the Bakers from FRPH but they aren't an RMR entity either.

[Spekulatius]

I don’t own it, but CVX currently yields ~4.7% and has been raising their dividend forever. I think one can do a whole lot worse than buying CVX as an income instrument.