Multifamily sector relief, bidding wars for last-mile industrial assets, rebuking a restaurant study, DoorDash to the rescue, and Weyerhaeuser’s new dividend structure.
In Today’s News
This GlobeSt.com analysis says the multifamily sector is finally getting not just one good report but, instead, a healthy batch of good news in the form of several indicators that point to a change in landlords‘ near-term fortunes.
Why it matters: Property managers big and small are looking for a turnaround. This piece helps explain where that might be coming from and how quickly recovery could arrive.
National Real Estate Investor talks to stakeholders who say positive industrial real estate fundamentals are driving asset values to record highs, particularly “last mile” properties in core urban markets. And investors of all types are competing hard to pounce on the limited number of available deals.
Why it matters: Last mile warehouses are generally considered those from which goods go directly to the consumer. Creative thinkers with some investing power may be able to identify possible properties and tenants in their markets, and we can all buy real estate investment trusts (REITs). Looks like this segment still has some sizzle.
Nation’s Restaurant News reports on the study and the industry’s response, which includes criticism the study was based on data gathered through May, before many operations had safety measures in place.
Why it matters: Restaurants, from the biggest chains to the mom-and-pops, are a big part of real estate investors‘ portfolios of all kinds, including REITs. Their ability to survive is crucial in so many ways as they and the world around them contend with the catastrophe that is the coronavirus.
Today on Millionacres
Millionacres’ Maurie Backman notes that DoorDash, the leading food delivery app in the country, has just filed its IPO prospectus with the Securities and Exchange Commission (SEC). The company plans to list its shares on the New York Stock Exchange under the symbol DASH.
Why it matters: This company will rise and fall with the success of the restaurants it serves. Pushing hard to increase takeout service like this would seem to be a real benefit for eateries hit hard by seating restrictions.
Weyerhaeuser (NYSE: WY) curtailed production and suspended its dividend when the pandemic took hold, and then lumber prices soared along with demand for remodeling and new housing. It’s now adjusting how it pays dividends to accommodate for the volatility inherent in the commodities biz.
Why it matters: For Weyerhaeuser investors and possible buyers, Millionacres’ Matthew DiLallo lays out how this works. He also explains why it might work, too, for other REITs in different segments, such as the hospitality industry, and calls it “an interesting one to watch.”
The Motley Fool has a disclosure policy. Editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Editorial content from Millionacres is separate from The Motley Fool editorial content and is created by a different analyst team.
Video: Rise in home prices will be ‘tremendous’ for builders: Analyst (CNBC)
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