Brad Thomas - The Intelligent REIT Investor Guide

1 Cover

2 Title Page The Intelligent REIT Investor Guide HOW TO SLEEP WELL AT NIGHT WITH SAFE AND RELIABLE DIVIDEND INCOME Brad Thomas

3 Copyright

4 Dedication

5 Acknowledgments

6 A Building Block for REITs

7 CHAPTER 1: REITs: What They Are and How They Work REITs Are Liquid Assets Types of REITs General Investment Characteristics Higher Current Returns

8 CHAPTER 2: REITs Versus Competitive Investments Bonds Convertible Bonds Preferred Stocks Other High‐Yielding Equities Other Real Estate Investment Vehicles The Private REIT Phenomenon

9 CHAPTER 3: REITs over the Decades The Tax Reform Act of 1986 The 1990s: The Modern REIT Era Begins UPREITs and DownREITs REIT Modernization Act, RIDEA, and Capital Recycling The 21st Century (So Far) Lending REITs Versus Ownership REITs

10 CHAPTER 4: Residential REITs Ups and Downs The Real Estate Cycles Apartments

11 CHAPTER 5: Retail REITs The Mall Sector Factory Outlet Centers Shopping Centers Nothing but Net Lease

12 CHAPTER 6: Office, Healthcare, Self‐Storage, and Lodging REITs Office Buildings Healthcare Self‐Storage Hotels/Lodging

13 CHAPTER 7: Technology REITs Tower REITs Risks

14 CHAPTER 8: Specialized REITs Gaming Billboards Prisons Timber Farmland ( Contributed by David Gladstone) Cannabis

15 CHAPTER 9: REITs: Mysteries and Myths Myth #1: REITs Are Packages of Real Estate Properties Myth #2: Real Estate Is a High‐Risk Investment Myth #3: Real Estate Is Merely an Inflation Hedge Myth #4: REIT Performance Is Anchored to REIT Property Performance Myth #5: REIT Stocks Are Trading Vehicles

16 CHAPTER 10: REITs: Growth and Value Creation The Significance of FFO Funds from Operations (FFO) Capital Recycling NOI and IRR

17 CHAPTER 11: Searching for Blue Chips Growth REITs Value or “Turnaround” REITs The Virtue of Blue‐Chip REITs

18 CHAPTER 12: Breaking Down the REIT Balance Sheet Debt Ratios Interest Coverage Ratios Debt Maturity Variable‐Rate Debt Secured Debt Conservative and Consistent Dividends Corporate Governance Notes

19 CHAPTER 13: REIT Preferred Stocks Primary Characteristics of REIT Preferred Stocks Types of Preferred Stocks Credit Ratings and Analysis Yield to Call Interest Rate Risk Stock Market Risk and Recessions Types of Preferred Stocks Taxation ETFs, Mutual Funds, and Closed End Funds Conclusion

20 CHAPTER 14: The Quest for Investment Value Real Estate Asset Values Valuing REITs as a Group

21 CHAPTER 15: Building a REIT Portfolio Modest Risks and Sustainable Retirements Looking for the “Holy Grail” Allocation Diversification Among REITs How to Get Started

22 CHAPTER 16: Investing in Global REITs Institutionalization of Real Estate The Three Big Drivers The Case for a Global Real Estate Portfolio Defining Global Investment Opportunities Risks Associated with International Investing

23 CHAPTER 17: Management Matters

24 Afterword

25 The Intelligent REIT Glossary

26 Contributor Biographies

27 Index

28 End User License Agreement

1 Chapter 2 Table 2.1 REITs Should Produce Better Total Returns than Bonds

2 Chapter 4Table 4.1 18‐Year Real Estate Business Cycle

3 Chapter 12Table 12.1 U.S. Equity REIT Debt Ratios in Q4 2019

1 Chapter 1 Figure 1.1 Figure 1.2 Figure 1.3

2 Chapter 3 Figure 3.1

3 Chapter 4Figure 4.1Figure 4.2Figure 4.3Figure 4.4Figure 4.5

4 Chapter 5Figure 5.1Figure 5.2Figure 5.3Figure 5.4

5 Chapter 6Figure 6.1Figure 6.2Figure 6.3Figure 6.4

6 Chapter 7Figure 7.1Figure 7.2Figure 7.3Figure 7.4Figure 7.5Figure 7.6Figure 7.7

7 Chapter 8Figure 8.1Figure 8.2Figure 8.3Figure 8.4Figure 8.5Figure 8.6

8 Chapter 10Figure 10.1Figure 10.2Figure 10.3

9 Chapter 12Figure 12.1

10 Chapter 13Figure 13.1Figure 13.2

11 Chapter 14Figure 14.1Figure 14.2Figure 14.3

12 Chapter 15Figure 15.1

13 Chapter 16Figure 16.1Figure 16.2Figure 16.3

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2 Table of Contents

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“The simple genius of public REITs is that they turn bricks and mortar into transparent and predictable liquid assets. Since they tend to pay high dividends, REITs can serve as a terrific addition to an investment portfolio. Thomas’ book helps break down this asset class for the average person, making REITs more understandable and therefore more accessible to everyone.”