Finding the Right REIT

Featuring Kevin Kelly

Kevin Kelly, managing partner of Benchmark Investments, presents his pairs trade on REITs. He explains how best to profit from real estate in a rising rate environment in this interview with Justine Underhill. Filmed on June 11, 2018.

Published on
15 June, 2018
Topic
Technology, Valuation
Duration
16 minutes
Asset class
Bonds/Rates/Credit, Real Estate
Rating
58

Comments

  • AS

    Amit S.

    20 6 2018 11:18

    1       0

    There are times when I find better insights under the comments section than in the actual video/content!

  • ot

    ognian t.

    17 6 2018 14:39

    4       0

    What a gem! Go to 3:30 where we hear that "SRVR provides the backbone for 21, 22 and 23 century". Yes, Kevin we ( I mean homo sapiens) nailed it as we are so good at predicting the next quarter of two why not leap 200-300 years ahead into the future. I am sorry, I could not continue watching after that as it so obviously above my comprehension and imagination.

  • LD

    Leo D.

    17 6 2018 05:06

    2       0

    It would be interesting to invite Brad Thomas on for some counterpoints to the rates going up = REITs going down narrative. Just a suggestion because I would like to hear both sides of the argument.

  • AL

    Alfonso L.

    16 6 2018 18:49

    1       0

    In terms of SRVR, I hear him about the growth of data centers. But some part of me sees things shrinking dramatically in terms of size, and increasing in terms of performance. I like the idea of Data Center REIT's, and I see the value of them not being owned by the large technology users, but instead being leased. But, somewhere in here I think the size of the computers might drop and then the demand for space might shrink. It's unlikely, but I'm not sure that I prefer these dramatically to say an apartment complex where i'm only betting on the population gently increasing to keep my complex full.

  • TT

    Tim T.

    15 6 2018 21:44

    0       0

    Any time someone makes a prediction more than a few years out I giggle....especially an aggressive one. "50 to 100 years" is a ridiculous prediction....no one know what things that far out will look like investment wise.

  • rm

    russell m.

    15 6 2018 18:13

    0       0

    For me, I don’t care for pairs. However I sometimes consider a long in AMT, one of the heavy weights in his etf, but in the end I am never willing to pay that much. I don’t like pricey yield stuff. All I want is a growth rate, a multiple, and a chart I can swing trade. I keep passing.

  • MM

    Mike M.

    15 6 2018 15:41

    5       0

    Liquidity, SRVR has traded only 200 shares today? Stop is meaningless.

    Best regards,

    Mike

  • SC

    Sean C.

    15 6 2018 14:04

    4       0

    Clearly appears to be a spread trade and not two separate trades. As such shouldn't both entry levels and stops be on a spread basis and not separate? Given that it is a spread would have been nice to see some discussion as to whether he recommends the spread being dollar neutral, beta neutral, or maybe even yield/carry neutral.

  • SS

    Sam S.

    15 6 2018 13:53

    0       0

    Well done, informative, and excellent presentation from both!

  • KJ

    Kulbir J.

    15 6 2018 13:45

    3       1

    The returns over a 3 year period (about 10%) isn't very appealing.

  • CM

    Carlos M.

    15 6 2018 10:04

    13       0

    as a summary
    you short VNQ and long SRVR, they are positively correlated ... but unless he did the sum of the parts to have a bit of history you cannot possibly say that if one goes down 10% the other one goes down 4% with any degree of confidence since it is a very new product.
    plus it probably has a high correlation with the tech industry which in my view we should be expecting some sector rotation soon.
    plus you have a negative carry ( -4%+ 3.3% ) without adding any other fees and you are planning on holding it for 3 years.
    sorry but it did not convince me, great way of promoting a new etf though. :)