Delta-proof REITs; Bed Bath & Beyond’s woes may just be the tip of the iceberg; broad-based building materials supply dips and price spikes; an opportunity zone opportunity; an iconic hotel reopening.
Today on Millionacres
While the delta variant is affecting some real estate sectors, it can’t touch others. Here’s a look at three real estate investment trusts (REITs) that will thrive even if the delta wave persists.
Lack of in-store shoppers isn’t the only matter plaguing Bed Bath & Beyond (NASDAQ: BBBY). The retailer is also grappling with supply chain issues that are impacting its inventory and eating into its profits. In fact, the company recently slashed its revenue and earnings outlook for the year in light of anticipated inventory issues, causing its stock to dip.
The Millionacres takeaway: If the upcoming holiday season is truly sluggish due to supply chain issues, Bed Bath & Beyond won’t be the only retailer to suffer. This is not the sort of news real estate investors want to hear following a year when so many retailers dropped like flies.
Right now, real estate investors are seeing a huge surge in construction costs. And there are a number of key building materials that are driving prices up as a whole.
The Millionacres takeaway: Our Maurie Backman points out how it began with lumber but now has grown to piping and resins and lots of metal products, too. Smart investors who can spot actionable opportunities ahead of a snapback could come out looking very smart indeed.
Also in Today’s News
A key deadline is approaching for investors looking to maximize the benefits of the opportunity zone program, and fund managers are preparing to receive an influx of capital in the coming months, BisNow Washington reports [subscription required].
The Millionacres takeaway: The Dec. 31 deadline is for an incentive that gives investors a 10% step-up in the basis of their investment and adds to the argument that now’s the time to invest in qualified opportunity funds if you think the Biden administration might succeed in raising capital gains taxes in general.
The New York Hilton, shuttered by a pandemic that grounded business travelers and kept tourists at home, is scheduled to come back online Oct. 4, Bloomberg reports [subscription required].
The Millionacres takeaway: This iconic property is a major conference and business travel venue and one of New York City‘s biggest hotels. Its reopening is a good sign that maybe, just maybe, there’s a light at the end of the tunnel that is COVID-19 for the hotel industry — and so much more.
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