Saturday, August 26, 2017

Obama Is Clearly the US Real Estate Investment Trust (REIT) President .................................................................................... The 147 US REITs With Market Caps Above $1 Bil Generated Total Audited Earnings in 2016 of $38.035 Bil, 67 Times Their Total Earnings of $0.569 Bil in 2008, the Year Before Obama Took Office .................................................................................... 2016 US REIT Total Audited Earnings of $38.035 Bil Increased By a Blistering 43% Over 2015 Total Earnings of $26.605 Bil Under Obama and US Fed Chair Yellen .................................................................................... US REIT Total Annual Earnings Increased Very Briskly in Every Year From 2008 to 2016, With all 8 of the Annual Total Earnings Increases Above 12% and 5 of the 8 Above 30%, Under Obama and US Fed Chairs Bernanke and Yellen .................................................................................... Just Imagine How Much Higher Median US Wages Would Be If In Addition To US REITs, US Manufacturing Investment Trusts Would Also Have Been Permitted: My Hunch is That They Would Now Be More Than 50% Higher .................................................................................... Also Just Imagine How Much Substantially Broader the US Middle Class Would Now Be If In Addition To US REITs, US Manufacturing Investment Trusts Would Also Have Been Permitted

From a review of the Google Finance Website and of company financial statements in the US SEC Website, I found the 147 separate US Real Estate Investment Trusts which trade with Stock Market Capitalizations either very late in 2016 or very early in 2017 of more than $1 Bil and which also have filed their fiscal year 2016 annual financial statements with the SEC.

Below here are the reported Audited US GAAP Earnings (Losses) From Continuing Operations of each of these 147 largest US REITs which trade for all of the fiscal years from 2008 through 2016 where the earnings numbers were reported:


2016 2015 2014 2013 2012 2011 2010 2009 2008



Most Audited Audited Audited Audited Audited Audited Audited Audited Audited



Recent Net Net Net Net Net Net Net Net Net
US REITs City State 2016 Income Income Income Income Income Income Income Income Income
Market Caps Above $1 Bil HQs HQs FYE (Loss) (Loss) (Loss) (Loss) (Loss) (Loss) (Loss) (Loss) (Loss)



 $ mils  $ mils  $ mils  $ mils  $ mils  $ mils  $ mils  $ mils  $ mils













Medical Properties Trust Birmingham AL Dec16          226          140            51            89            73            12              1            30            15
Uniti Group Little Rock AR Dec16            (2)            25






Store Capital Corp Scottsdale AZ Dec16          110            82            43            22              7            (3)


Vereit Inc Phoenix AZ Dec16        (201)        (323)     (1,011)        (508)          (41)            (4)


Healthcare Trust of America Scottsdale AZ Dec16            47            34            46            25          (24)            (6)            (8)          (25)          (28)
Alexandria Real Estate Equities Pasadena CA Dec16          (50)          146          107          140          106          135          139          142          120
American Assets Trust San Diego CA Dec16            46            54            31            23            14            14              2              5          (12)
American Homes 4 Rent Agoura Hills CA Dec16            10          (48)          (33)          (20)          (10)            (0)


Caretrust REIT Inc Mission Viejo CA Dec16            29            10            (8)            (0)              0            (5)            (2)

Digital Realty Trust San Francisco CA Dec16          432          302          203          320          216          162          105            91            68
Douglas Emmett Inc Santa Monica CA Dec16            96            69            53            53            28              2          (33)          (34)          (36)
Equinix Redwood City CA Dec16          114          188        (261)            96          130            92            36            69          108
Essex Property Trust San Mateo CA Dec16          438          248          134          141          128            50            50            44            81
Four Corners Property Trust Mill Valley CA Dec16          157              6              0              0            (0)



HCP Inc Irvine CA Dec16          640        (546)          937          911          801          550          321          103          228
Hudson Pacific Properties Los Angeles CA Dec16            44          (16)            24              1            (5)            (6)            (4)            (1)            (3)
Kilroy Realty Corp Los Angeles CA Dec16          304          239            59            15            (5)          (17)            (7)            28            41
LTC Properties Inc Westlake Village CA Dec16            85            73            73            55            50            49            45            44            43
Macerich Santa Monica CA Dec16          555          523       1,607          159          303          244            39          175            87
PennyMac Mortgage Investment Trust Moorpark CA Dec16            76            90          195          200          138            64            24            (2)
Prologis San Francisco CA Dec16       1,293          926          739          230        (106)        (275)     (1,605)        (372)        (379)
PS Business Parks Glendale CA Dec16          145          149          205          116            94          100            96            91            84
Public Storage Glendale CA Dec16       1,460       1,318       1,150       1,058          930          833          688          798          982
Realty Income Corp San Diego CA Dec16          316          285          269          181          142          141          112          119          108
Redwood Trust Inc Mill Valley CA Dec16          131          102          101          173          132            25          111            39        (446)
Retail Opportunity Investments Corp San Diego CA Dec16            36            25            21            35              8            10            (0)            (9)              3
Rexford Industrial Realty Los Angeles CA Dec16            26              2            (1)            (9)            (8)            (7)


Sabra Health Care REIT Inc Irvine CA Dec16            70            79            47            34            20            13              0

Sunstone Hotel Investors Aliso Viejo CA Dec16          141          340            83            22              1            41          (31)          (44)            28
Apartment Investment & Mgt Denver CO Dec16          483          272          356          238          195          (58)          (90)          (45)          627
UDR Inc Highlands Ranch CO Dec16          110          105            16              2          (46)        (123)        (118)          (94)          (63)
DCT Industrial Trust Inc Denver CO Dec16            98          103            47            (9)          (29)          (43)          (45)          (26)          (16)
CoreSite Realty Denver CO Dec16            82            57            40            32            11          (11)          (12)            (7)          (14)
Starwood Property Trust Greenwich CT Dec16          368          452          502          330          206          121            59            (3)
DuPont Fabros Technology Washington DC Dec16          181            (4)          125            54            61            79            44              3            36
Washington REIT Washington DC Dec16          119            89              5            (0)              8          (14)              1            10            (9)
Rayonier Inc Jacksonville FL Dec16          218            44            54          106            17            58            49        
National Retail Properties Orlando FL Dec16          212          188          180          154          132            84            64            55            96
Regency Centers Corp Jacksonville FL Dec16          167          153          189          151            26            56            13          (29)          147
SBA Communications Boca Raton FL Dec16            76        (176)          (24)          (56)        (184)        (127)        (194)        (141)          (67)
Invesco Mortgage Capital Atlanta GA Dec16          258          114        (218)          157          335          279          104            18            (0)
Piedmont Office Realty Trust Johns Creek GA Dec16          100          131            42            93            89          225          120            75          131
Columbia Property Trust Inc Atlanta GA Dec16            84            45            95            26            21            32            26            42          (23)
Cousins Properties Atlanta GA Dec16            61            94            13          107            28        (135)          (24)            14            24
Care Capital Properties Chicago IL Dec16          123          143          158          175          173



Equity Commonwealth Chicago IL Dec16          233          100            21          (37)            93            64            18            67            61
Equity Lifestyle Properties Chicago IL Dec16          187          151          138            77            64            42            61            51            39
Equity Residential Chicago IL Dec16       4,480          908          657        (168)          160            84          (83)          (58)        (106)
First Industrial Realty Trust Chicago IL Dec16          126            77            23              5          (25)          (36)        (151)          (20)        (149)
General Growth Properties Chicago IL Dec16       1,308       1,394          398          329        (427)        (315)        (862)        (527)          (78)
Retail Properties of America Oak Brook IL Dec16          167          126            43            14            (0)          (73)          (95)        (115)        (683)
Ventas Chicago IL Dec16          649          418          476          454          363          364          246          266          223
Simon Property Group Indianapolis IN Dec16       2,135       2,139       1,622       1,367       1,563       1,246          754          387          600
Duke Realty Corp Indianapolis IN Dec16          313          189          216            60          (80)            (1)            39        (254)            86
Kite Realty Trust Indianapolis IN Dec16            (1)            25          (16)            (1)          (11)              4            (9)              5            10
QTS Realty Trust Overland Park KS Dec16            25            24            19              4          (10)            (1)            14        
Lamar Advertising Baton Rouge LA Dec16          299          263          254            40              8              7          (39)          (58)              2
American Tower Boston MA Dec16          970          672          803          482          594          382          374          239          236
Boston Properties Boston MA Dec16          570          800          526          841          332          314          190          274          131
CYS Investments Inc Waltham MA Dec16            16            (5)          426        (476)          373          292            22            64          (39)
Franklin Street Properties Wakefield MA Dec16              8            35            13            17            23            19            18            27            30
Government Properties Income Trust Newton MA Dec16            58        (209)            53            56            49            42            24            26            32
Hospitality Properties Trust Newton MA Dec16          223          166          197          133          152          190            21          193          124
Iron Mountain Boston MA Dec16          104          125          329            99          183          246          166          232            95
Select Income REIT Newton MA Dec16          116            75          106            93            66            69            61            58            52
Senior Housing Properties Trust Newton MA Dec16          137          125          156          146          136          151          116          110          107
Stag Industrial Inc Boston MA Dec16            36          (29)            (5)              0            (8)          (11)            (3)            (6)            (8)
AGNC Investment Corp Bethesda MD Dec16          623          215        (233)       1,259       1,277          770          288          119            35
Chesapeake Lodging Trust Annapolis MD Dec16            77            68            61            45            27              9            (1)

Corporate Office Properties Trust Columbia MD Dec16            16          189            45          102            20        (124)            46            61            61
DiamondRock Hospitality Bethesda MD Dec16          115            86          163            24          (18)            (9)          (10)          (10)            48
Federal Realty Investment Trust Rockville MD Dec16          259          218          172          168          156          150          128          104          135
Hannon Armstrong Sustainable Infrastructure Annapolis MD Dec16            15              8            10          (13)              4            (5)            14              4            (0)
Host Hotels & Resorts Bethesda MD Dec16          771          565          741          206          (10)          (10)        (127)        (197)          383
LaSalle Hotel Properties Bethesda MD Dec16          253          136          213            90            72            43              3              6            31
Omega Healthcare Investors Hunt Valley MD Dec16          383          233          221          173          121            53            58            82            78
Pebblebrook Hotel Trust Bethesda MD Dec16            74            95            74            43            27            15            (7)            (0)
Quality Care Properties Bethesda MD Dec16            81          113          293          333    



RLJ Lodging Trust Bethesda MD Dec16          201          220          136          107            43          (10)          (41)        (125)          (28)
Saul Centers Bethesda MD Dec16            57            53            58            35            35            30            40            43            48
Taubman Centers Bloomfield Hills MI Dec16          188          193       1,278          189          158          141          123          104              7
Ramco-Gershenson Properties Farmington Hills MI Dec16            61            67            (2)              8              7          (29)          (24)            12            30
Agree Realty Corp  Bloomfield Hills  MI Dec16            46            40            19            19            14            14              5            15            13
Sun Comminities Inc Southfield MI Dec16            31          170            33            20              8            (1)            (4)            (7)          (28)
EPR Properties Kansas City MO Dec16          225          194          176          176          142          130          117            35          127
Eastgroup Properties Jackson MS Dec16            96            48            48            32            26            23            19            27            33
Tanger Factory Outlet Ctrs Greensboro NC Dec16          204          222            78          113            56            51            38            73            30
Highwoods Properties Inc Raleigh NC Dec16          123            86            97            43            22            26            55            46            38
Alexanders Inc Paramus NJ Dec16            86            77            67            55            50            55            49          133            76
Mack Cali Realty Corp Edison NJ Dec16          130        (142)            31          (90)            38            59            46            58            62
Monmouth RE Inv Corp Freehold NJ Sep16            32            21            20            21            19            15            11              2              4
Urban Edge Properties Paramus NJ Dec16            97            41            66          109            70            87            84            62    
MGM Growth Properties LLC Las Vegas NV Dec16            35        (262)        (246)        (254)




Acadia Realty Trust Rye NY Dec16          135          150          151            27              9              5            49              2            27
Annaly Capital Mgt New York NY Dec16       1,433          466        (842)       3,730       1,736          344       1,267       1,961          346
ApolloComrcialRealEstateFin New York NY Dec16          158          103            83            52            40            26            11            (2)
Blackstone Mortgage Trust New York NY Dec16          246          212          100            25          282          253        (185)        (576)          (58)
Brixmor Property Group New York NY Dec16          278          198          113          (81)        (150)          118        (275)        (128)        (970)
Chimera Investment  New York NY Dec16          552          250          589          363          328          137          248          231        (136)
Empire State Realty Trust New York NY Dec16          107            80            70          156            49            57            45            42            53
Getty Realty Corp Jericho NY Dec16            42            40            20            27            14              9            34            41            38
Global Net Lease New York NY Dec16            48            (2)          (54)            (7)            (0)            (0)


Gramercy Property Trust New York NY Dec16            19          (50)            55            (8)          (18)          (21)            
Ladder Capital Corp New York NY Dec16          114          146            98          189          169            72            91            42            (6)
Lexington Realty Trust New York NY Dec16            96          113            48          (21)          184              8            (0)        (130)          (15)
Life Storage Williamsville NY Dec16            84          113            89            71            48            27            31            21            36
MFA Financial New York NY Dec16          313          313          314          303          307          316          270          268            46
Outfront Media Inc New York NY Dec16            91          (29)          307          144          113          107            71            22     (2,097)
Paramount Group New York NY Dec16              2            21          182          303          140          401          203

Seritage Growth Properties New York NY Dec16          (91)          (39)






SL Green Realty New York NY Dec16          279          303          364          111          171          625          277            73            45
Two Harbors Investment New York NY Dec16          353          492          167          575          287          128            36            (9)              2
Vornado Realty Trust New York NY Dec16          975          807          423            (3)          384          450          653            77          238
W P Carey New York NY Dec16          275          185          213            94            88          153            84            64            69
Kimco Realty NewHydePark NY Dec16          379          894          375          277          173          100            65            (2)          218
New Residential Investment New York NY Dec16          583          282          442          266            41              1


DDR Corp Beachwood OH Dec16          (12)        (238)            21            21            28          (10)        (172)        (231)          (45)
Forest City Realty Trust Cleveland OH Dec16        (207)          532            (8)            35          (17)        (102)            
Washington Prime Group Columbus OH Dec16            77        (104)          205          187          156          160          154          146          169
Welltower Inc Toledo OH Dec16          718          608          358            87          181          117            39          145          126
Brandywine Realty Trust Radnor PA Dec16            41          (31)              6            39          (37)          (25)          (43)              4            (2)
CubeSmart Malvern PA Dec16            88            79            26            10          (13)          (13)          (17)          (21)          (28)
Gaming and Leisure Properties Wyomissing PA Dec16          289          128          139            15            23            27            15            20            22
Liberty Property Trust Malvern PA Dec16          366          246          176            98            97          105            95            (5)          123
CBL & Associates Properties Chattanooga TN Dec16          195          119          253          115          186          155          129            (2)            60
Education Realty Trust Memphis TN Dec16            21            17            14              5              0            (7)          (10)            (2)            (7)
Healthcare Realty Trust Nashville TN Dec16            86            59            34          (13)            (1)          (12)            (7)            23            13
Mid-America Apartment Communities Memphis TN Dec16          224          351          151            38            61            29            23            32            30
National Health Investors Murfreesboro TN Dec16          153          150          103            79            73            70            59            57            50
Ryman Hospitality Properties Inc Nashville TN Dec16          159          112          126          118          (27)            10          (92)              7              4
American Campus Communities Austin TX Dec16          101          118            61            47            48            34            18              0            (9)
Camden Property Trust Houston TX Dec16          455          239          283          156          161            24              8          (66)            (7)
CIM Commercial Trust Corp Dallas TX Dec16            31              6            13            15            20              6              6              6              9
Crown Castle Intl Houston TX Dec16          357          525          346            60          125          145        (311)        (114)          (49)
CyrusOne Inc Carrollton TX Dec16            20          (20)          (15)          (36)          (20)              2              4              6              4
Howard Hughes Corp Dallas TX Dec16          202          127          (24)          (74)        (128)          148          (69)        (703)          (18)
Invitation Homes Dallas TX Dec16          (78)        (160)        (270)





Monogram Residential Trust Plano TX Dec16              8            67              0          (18)          (41)            95          (33)            (8)              3
Summit Hotel Properties Inc Austin TX Dec16          108          125            20              7            (7)            (9)          (20)          (18)              4
Weingarten Realty Investors Houston TX Dec16          176          122          116          133            57          (14)              5            85            64
Extra Space Storage Salt Lake City UT Dec16          397          210          196          186          128            58            33            39            43
Apple Hospitality REIT Richmond VA Dec16          145          117              7            82            69            50            (3)              3              2
Avalon Bay Communities Arlington VA Dec16       1,034          742          659            58          250          152            92            77            99
Weyerhauser Federal Way WA Dec16          415          411          616          330          156          319       1,274        (525)     (1,909)
Potlatch Corp Spokane WA Dec16            11            32            90            71            43            40            40            81            73
Physicians Realty Trust Milwaukee WI Dec16            32            13            (4)            (3)            (3)            (3)















Total all 147


    38,035     26,605     23,523     20,111     16,089     12,066       6,060       3,804          569













Annual Total Earnings % Increase Over Prior Year

43% 13% 17% 25% 33% 99% 59% 569%













2016 Total Earnings % Above:











….. 2015


43%







….. 2008


6,589%








Not included in the above 147 REITs are the many REITs with market caps below $1 Bil.

Also excluded are REITs that don't trade separately.

One good example of the latter is Hotel Chain Extended Stay America.

Extended Stay America has Paired Shares with its ESH REIT.  The paired shares trade.

Extended Stay America also owns 56% of the related ESH REIT and thus consolidates it.

In its 10-K Income Tax Footnote, you can see just how much Extended Stay America's income taxes are reduced by this REIT.

For 2016, Extended Stay America's Effective Income Tax Rate is 17.4%, which is less than half of the US Federal Statutory Corporate Income Tax rate of 35.0%  Almost all of this tax rate reduction, or 17.3% of the 17.4% tax rate cut, is due to the REIT income being tax free.

Just using the above example, can you see why US Manufacturing Companies would love to have a US Manufacturing-Type REIT?  The substantially lower effective income tax rate which results is a clear incentive for them to move overseas jobs back to the US and also to pick the US in expanding its operations.

As an added bonus, people with financial savvy should think about just what happens to the present huge Deferred Tax Liability many US Manufacturers now have just related to their Manufacturing Property and Equipment and what happens to this Deferred Tax Liability and to their Reported Earnings when a US Manufacturing Investment Trust is established.

For the life of me, I really don't understand why so many US Retailers still refuse to establish US REITs for their real estate assets.  They are giving their stockholders very cloudy reasons for not looking out for their stockholders best interests.  This also is one way to economically deal with the competitive onslaught of both dominant retailers and someone like Amazon.

Also, US Retailers leasing Real Property instead of owning and also having large amounts of Leasehold Improvements on their books should think about just what happens to the present Deferred Tax Liability many US Retailers now have just related to their Leasehold Improvements and what happens to this Deferred Tax Liability and to their Reported Earnings when a US REIT is established. 

To illustrate the magnitude of this point, Hilton spun off its Park Hotels and Resorts now Headquartered in the CIA land of McLean, VA.  When it spun it off, Park Hotel & Resorts set up on its Balance Sheet Property and Equipment, net of $8.5 Bil and a Deferred Income Tax Liability of roughly $2.4 Bil.

Then in the first quarter of 2017, Park Hotel and Resorts recorded Income Before Income Tax of $69 Mil and Bottom Line Net Income of $2.350 Bil.  Yeah, it also reflected a roughly $2.3 Bil Income Tax Benefit in Earnings.

Here is a paragraph in Park Hotel and Resorts income tax footnote #7 for the first quarter 2017 disclosed in its 10-Q.

"We recognized an income tax benefit for the three months ended March 31, 2017 primarily as a result of the derecognition of approximate $2.3 Bil of Deferred Tax Liabilities upon our declaration of intent to be taxed as a REIT."

As an aside, I have to ask why did so many others of these US REIT spinoffs not recognize large income tax benefits in earnings like Hilton Spinoff Park Hotels and Resorts did?


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