Tag: O
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Another Field Goal Blocked By Cirque Du Soleil Performers Doing Acrobatics On Goal Post
LAS VEGAS—Noting that the dazzling Super Bowl performances had been fun but largely antithetical to the competition, sources confirmed Sunday that yet another field goal had been blocked by Cirque Du Soleil performers doing acrobatics on a goal post. “It’s great to see so many sparking leotards and death-defying aerial stunts, but they keep knocking the ball straight out of the air whenever a kicker tries to score,” said spectator Carla Jeffries, adding that no matter how many times the referees blew the whistle, the Cirque Du Soleil performers continued to cartwheel, somersault, and backflip across goalposts at each end of the field. “At first it didn’t seem like a big deal, but then the aerial performers descended from the poles, started riding giant bicycles, walking on stilts, and completely blocking the players from even entering in the end zone. Also, we couldn’t hear anything over the speakers blaring ‘All You Need Is Love.’ Overall, it was extremely frustrating.” At press time, the crowd began to boo after David Copperfield appeared on the field in a puff of smoke and made the ball disappear every time Patrick Mahomes or Brock Purdy tried to throw it.
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Teacher Retirement System of Texas Trims Stake in Realty Income Co. (NYSE:O)
Teacher Retirement System of Texas decreased its holdings in shares of Realty Income Co. (NYSE:O – Free Report) by 4.7% in the 3rd quarter, according to its most recent Form 13F filing with the SEC. The firm owned 260,347 shares of the real estate investment trust’s stock after selling 12,847 shares during the period. Teacher Retirement System of Texas’ holdings in Realty Income were worth $13,002,000 as of its most recent SEC filing.
Several other hedge funds and other institutional investors have also added to or reduced their stakes in the business. BlackRock Inc. lifted its holdings in shares of Realty Income by 4.3% during the 2nd quarter. BlackRock Inc. now owns 61,840,542 shares of the real estate investment trust’s stock worth $3,697,446,000 after acquiring an additional 2,523,432 shares during the last quarter. State Street Corp lifted its stake in Realty Income by 5.0% during the second quarter. State Street Corp now owns 51,642,575 shares of the real estate investment trust’s stock worth $3,100,637,000 after purchasing an additional 2,460,053 shares during the last quarter. Cohen & Steers Inc. boosted its holdings in shares of Realty Income by 4.3% in the 2nd quarter. Cohen & Steers Inc. now owns 45,307,933 shares of the real estate investment trust’s stock worth $2,709,100,000 after purchasing an additional 1,861,224 shares in the last quarter. Morgan Stanley increased its position in shares of Realty Income by 13.6% during the 4th quarter. Morgan Stanley now owns 18,951,549 shares of the real estate investment trust’s stock valued at $1,202,097,000 after purchasing an additional 2,273,591 shares during the last quarter. Finally, Geode Capital Management LLC raised its holdings in shares of Realty Income by 8.3% during the 2nd quarter. Geode Capital Management LLC now owns 15,645,964 shares of the real estate investment trust’s stock valued at $933,258,000 after buying an additional 1,204,684 shares in the last quarter. 78.82% of the stock is currently owned by hedge funds and other institutional investors.
Insider Buying and Selling
In other Realty Income news, Director A. Larry Chapman sold 3,500 shares of the firm’s stock in a transaction that occurred on Monday, December 18th. The shares were sold at an average price of $56.98, for a total transaction of $199,430.00. Following the completion of the transaction, the director now owns 10,590 shares of the company’s stock, valued at $603,418.20. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 0.10% of the stock is currently owned by insiders.
Realty Income Price Performance
Shares of NYSE O opened at $56.12 on Friday. Realty Income Co. has a 1 year low of $45.03 and a 1 year high of $68.85. The stock has a market capitalization of $40.63 billion, a P/E ratio of 42.52, a P/E/G ratio of 2.73 and a beta of 0.95. The company’s 50-day moving average is $55.82 and its 200 day moving average is $55.36. The company has a debt-to-equity ratio of 0.64, a current ratio of 1.55 and a quick ratio of 1.55.
Realty Income (NYSE:O – Get Free Report) last posted its quarterly earnings data on Monday, November 6th. The real estate investment trust reported $0.33 earnings per share for the quarter, missing the consensus estimate of $1.00 by ($0.67). Realty Income had a net margin of 22.64% and a return on equity of 2.90%. The firm had revenue of $1.04 billion for the quarter, compared to the consensus estimate of $999.01 million. During the same period in the previous year, the firm posted $0.98 earnings per share. The business’s revenue was up 24.1% compared to the same quarter last year. On average, sell-side analysts expect that Realty Income Co. will post 4.02 earnings per share for the current year.
Realty Income Dividend Announcement
The firm also recently declared a feb 24 dividend, which will be paid on Thursday, February 15th. Investors of record on Thursday, February 1st will be given a dividend of $0.2565 per share. The ex-dividend date is Wednesday, January 31st. This represents a yield of 5.2%. Realty Income’s dividend payout ratio (DPR) is currently 233.33%.
Wall Street Analyst Weigh In
O has been the topic of several recent research reports. Stifel Nicolaus reduced their target price on shares of Realty Income from $69.50 to $67.50 and set a “buy” rating on the stock in a report on Tuesday, November 7th. Scotiabank downgraded Realty Income from a “sector outperform” rating to a “sector perform” rating and decreased their price objective for the stock from $61.00 to $54.00 in a report on Monday, October 16th. Bank of America cut Realty Income from a “buy” rating to a “neutral” rating and dropped their target price for the company from $67.00 to $52.00 in a report on Tuesday, October 10th. StockNews.com cut Realty Income from a “hold” rating to a “sell” rating in a research note on Saturday, December 30th. Finally, Royal Bank of Canada boosted their price objective on Realty Income from $58.00 to $60.00 and gave the company an “outperform” rating in a research report on Thursday, January 11th. One equities research analyst has rated the stock with a sell rating, six have assigned a hold rating and five have issued a buy rating to the company’s stock. Based on data from MarketBeat.com, Realty Income presently has an average rating of “Hold” and a consensus target price of $61.91.
Check Out Our Latest Research Report on O
Realty Income Company Profile
Realty Income, The Monthly Dividend Company, is an S&P 500 company and member of the S&P 500 Dividend Aristocrats index. We invest in people and places to deliver dependable monthly dividends that increase over time. The company is structured as a real estate investment trust (“REIT”), and its monthly dividends are supported by the cash flow from over 13,250 real estate properties primarily owned under long-term net lease agreements with commercial clients.
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ABMN Staff
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“The Best Chrismukkah Ever” From ‘The O.C.’ With Alan Sepinwall | Guilty Pleasures
Jo is joined by Rolling Stone TV critic and coauthor of Welcome to the O.C.: The Oral History Alan Sepinwall to talk about one of the greatest television holiday specials ever, “The Best Chrismukkah Ever,” from the first season of the legendary series The O.C.
Host: Joanna Robinson
Guest: Alan Sepinwall
Producer: Sasha AshallSubscribe: Spotify / Apple Podcasts / Stitcher
Joanna Robinson
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I Regret To Inform You
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California lawmakers to meet, eye big oil’s high gas prices
SACRAMENTO, Calif. — Furious about oil companies’ supersized profits after a summer of record-high gas prices, California Gov. Gavin Newsom on Monday will formally start his campaign to punish big producers by asking the Legislature to fine them and give the money back to drivers.
State lawmakers will briefly return to the state Capitol on Monday to swear in new members and elect leaders for the 2023 legislative session. But this year, Newsom also has called lawmakers into a special session for the purpose of approving a penalty for oil companies when their profits pass a certain threshold.
It’s bound to be a popular proposal with voters, who have been paying more than $6 per gallon of gasoline for much of the year. But the big question is how the measure will be received by California lawmakers, especially since the oil industry is one of the state’s top lobbyists and campaign donors.
Adding to the uncertainty is an unusually high number of new members who will take seats in the Legislature for the first time. More than a quarter of the Legislature’s 120 members could be new, depending on the outcome of a few close races where county officials are still counting votes.
“It’s kind of like the first day of school and you get this big ethics test about a job that you’ve never had,” said Jamie Court, president of Consumer Watchdog, an advocacy group that has partnered with the Newsom administration to back the gas proposal.
Among the state Senate’s new members is Angelique Ashby, a Democrat who narrowly won her seat following an intense campaign. The oil industry spent hundreds of thousands of dollars on radio and TV ads supporting Ashby’s campaign, a trend noticed by critics who tried to use it against her.
In an interview, Ashby said she hasn’t been approached lobbyists or others from the oil industry asking how she would vote on a potential penalty for oil companies. She noted the oil industry spent the money as “independent expenditures,” meaning she had no control over that spending during the campaign.
“Campaigns are not legislation, and the campaign slogans and strategies of my opponent are a thing of the past,” said Ashby, whose district includes Sacramento. “I’m fixated on the people of Senate District 8 and I will make my decision based on what is in their best interest.”
As of Sunday night, Newsom had not yet revealed his legislation and legislative leaders said they likely won’t begin deliberations on any proposal until January.
But the battle has already begun. Last week, the California Energy Commission held a public hearing about why the state’s gas prices are so high. California prices spiked over the summer, but so did the rest of the country — mostly in response to a crude oil price surge after Russia’s invasion of Ukraine.
California’s prices spiked again in October, even while the price of crude oil dropped. In the first week of October, the average price of a gallon of gas in California was $2.61 higher than the national average — the biggest gap ever. Since then, oil companies reported billions of dollars in profits.
Regulators had hoped to question the state’s five big oil refineries: Marathon, Valero, Phillips 66, PBF Energy and Chevron. But no company officials attended the hearing, with most saying that sharing information could violate anti-trust laws.
Newsom sought to shame those companies publicly, posting a video to his Twitter account of their empty seats during Thursday’s hearing.
“Big oil is ripping Californians off, and the deafening silence from the industry (at the public hearing) is the latest proof that a price gouging penalty is needed to hold them accountable for profiteering at the expense of California families,” Newsom said in a news release announcing the special session.
Catherine Reheis-Boyd, president of the Western States Petroleum Association, said the oil industry is volatile, pointing to billions of dollars in losses during the pandemic when demand for gasoline dropped sharply as many people worked from home and canceled travel plans.
During Thursday’s hearing, she blamed the state’s taxes and regulations for driving up gas prices.
“The governor and the Legislature should focus efforts on removing policy hurdles being imposed on the energy industry so we can focus on providing affordable, reliable and lower carbon energy to all Californians,” Reheis-Boyd said.
Severin Borenstein, a University of California-Berkeley professor, said the problem isn’t at the oil refinery level, but at the retail level where gasoline is sold to drivers.
California’s gasoline market is dominated by name-brand gasoline, which is more expensive, and the state’s gas prices have been consistently higher than the rest of the country since 2015, Borenstein said.
“We just don’t have the competition and discipline from those off-brand stations,” he said.
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20 dividend stocks with high yields that have become more attractive right now
Income-seeking investors are looking at an opportunity to scoop up shares of real estate investment trusts. Stocks in that asset class have become more attractive as prices have fallen and cash flow is improving.
Below is a broad screen of REITs that have high dividend yields and are also expected to generate enough excess cash in 2023 to enable increases in dividend payouts.
REIT prices may turn a corner in 2023
REITs distribute most of their income to shareholders to maintain their tax-advantaged status. But the group is cyclical, with pressure on share prices when interest rates rise, as they have this year at an unprecedented scale. A slowing growth rate for the group may have also placed a drag on the stocks.
And now, with talk that the Federal Reserve may begin to temper its cycle of interest-rate increases, we may be nearing the time when REIT prices rise in anticipation of an eventual decline in interest rates. The market always looks ahead, which means long-term investors who have been waiting on the sidelines to buy higher-yielding income-oriented investments may have to make a move soon.
During an interview on Nov 28, James Bullard, president of the Federal Reserve Bank of St. Louis and a member of the Federal Open Market Committee, discussed the central bank’s cycle of interest-rate increases meant to reduce inflation.
When asked about the potential timing of the Fed’s “terminal rate” (the peak federal funds rate for this cycle), Bullard said: “Generally speaking, I have advocated that sooner is better, that you do want to get to the right level of the policy rate for the current data and the current situation.”
Fed’s Bullard says in MarketWatch interview that markets are underpricing the chance of still-higher rates
In August we published this guide to investing in REITs for income. Since the data for that article was pulled on Aug. 24, the S&P 500
SPX,
-0.29%
has declined 4% (despite a 10% rally from its 2022 closing low on Oct. 12), but the benchmark index’s real estate sector has declined 13%.REITs can be placed broadly into two categories. Mortgage REITs lend money to commercial or residential borrowers and/or invest in mortgage-backed securities, while equity REITs own property and lease it out.
The pressure on share prices can be greater for mortgage REITs, because the mortgage-lending business slows as interest rates rise. In this article we are focusing on equity REITs.
Industry numbers
The National Association of Real Estate Investment Trusts (Nareit) reported that third-quarter funds from operations (FFO) for U.S.-listed equity REITs were up 14% from a year earlier. To put that number in context, the year-over-year growth rate of quarterly FFO has been slowing — it was 35% a year ago. And the third-quarter FFO increase compares to a 23% increase in earnings per share for the S&P 500 from a year earlier, according to FactSet.
The NAREIT report breaks out numbers for 12 categories of equity REITs, and there is great variance in the growth numbers, as you can see here.
FFO is a non-GAAP measure that is commonly used to gauge REITs’ capacity for paying dividends. It adds amortization and depreciation (noncash items) back to earnings, while excluding gains on the sale of property. Adjusted funds from operations (AFFO) goes further, netting out expected capital expenditures to maintain the quality of property investments.
The slowing FFO growth numbers point to the importance of looking at REITs individually, to see if expected cash flow is sufficient to cover dividend payments.
Screen of high-yielding equity REITs
For 2022 through Nov. 28, the S&P 500 has declined 17%, while the real estate sector has fallen 27%, excluding dividends.
Over the very long term, through interest-rate cycles and the liquidity-driven bull market that ended this year, equity REITs have fared well, with an average annual return of 9.3% for 20 years, compared to an average return of 9.6% for the S&P 500, both with dividends reinvested, according to FactSet.
This performance might surprise some investors, when considering the REITs’ income focus and the S&P 500’s heavy weighting for rapidly growing technology companies.
For a broad screen of equity REITs, we began with the Russell 3000 Index
RUA,
-0.04% ,
which represents 98% of U.S. companies by market capitalization.We then narrowed the list to 119 equity REITs that are followed by at least five analysts covered by FactSet for which AFFO estimates are available.
If we divide the expected 2023 AFFO by the current share price, we have an estimated AFFO yield, which can be compared with the current dividend yield to see if there is expected “headroom” for dividend increases.
For example, if we look at Vornado Realty Trust
VNO,
+1.03% ,
the current dividend yield is 8.56%. Based on the consensus 2023 AFFO estimate among analysts polled by FactSet, the expected AFFO yield is only 7.25%. This doesn’t mean that Vornado will cut its dividend and it doesn’t even mean the company won’t raise its payout next year. But it might make it less likely to do so.Among the 119 equity REITs, 104 have expected 2023 AFFO headroom of at least 1.00%.
Here are the 20 equity REITs from our screen with the highest current dividend yields that have at least 1% expected AFFO headroom:
Company Ticker Dividend yield Estimated 2023 AFFO yield Estimated “headroom” Market cap. ($mil) Main concentration Brandywine Realty Trust BDN,
+2.12% 11.52% 12.82% 1.30% $1,132 Offices Sabra Health Care REIT Inc. SBRA,
+2.41% 9.70% 12.04% 2.34% $2,857 Health care Medical Properties Trust Inc. MPW,
+2.53% 9.18% 11.46% 2.29% $7,559 Health care SL Green Realty Corp. SLG,
+2.25% 9.16% 10.43% 1.28% $2,619 Offices Hudson Pacific Properties Inc. HPP,
+1.41% 9.12% 12.69% 3.57% $1,546 Offices Omega Healthcare Investors Inc. OHI,
+1.23% 9.05% 10.13% 1.08% $6,936 Health care Global Medical REIT Inc. GMRE,
+2.55% 8.75% 10.59% 1.84% $629 Health care Uniti Group Inc. UNIT,
+0.55% 8.30% 25.00% 16.70% $1,715 Communications infrastructure EPR Properties EPR,
+0.86% 8.19% 12.24% 4.05% $3,023 Leisure properties CTO Realty Growth Inc. CTO,
+2.22% 7.51% 9.34% 1.83% $381 Retail Highwoods Properties Inc. HIW,
+0.99% 6.95% 8.82% 1.86% $3,025 Offices National Health Investors Inc. NHI,
+2.59% 6.75% 8.32% 1.57% $2,313 Senior housing Douglas Emmett Inc. DEI,
+0.87% 6.74% 10.30% 3.55% $2,920 Offices Outfront Media Inc. OUT,
+0.89% 6.68% 11.74% 5.06% $2,950 Billboards Spirit Realty Capital Inc. SRC,
+1.15% 6.62% 9.07% 2.45% $5,595 Retail Broadstone Net Lease Inc. BNL,
-0.30% 6.61% 8.70% 2.08% $2,879 Industial Armada Hoffler Properties Inc. AHH,
+0.00% 6.38% 7.78% 1.41% $807 Offices Innovative Industrial Properties Inc. IIPR,
+1.42% 6.24% 7.53% 1.29% $3,226 Health care Simon Property Group Inc. SPG,
+1.03% 6.22% 9.55% 3.33% $37,847 Retail LTC Properties Inc. LTC,
+1.42% 5.99% 7.60% 1.60% $1,541 Senior housing Source: FactSet Click on the tickers for more about each company. You should read Tomi Kilgore’s detailed guide to the wealth of information for free on the MarketWatch quote page.
The list includes each REIT’s main property investment type. However, many REITs are highly diversified. The simplified categories on the table may not cover all of their investment properties.
Knowing what a REIT invests in is part of the research you should do on your own before buying any individual stock. For arbitrary examples, some investors may wish to steer clear of exposure to certain areas of retail or hotels, or they may favor health-care properties.
Largest REITs
Several of the REITs that passed the screen have relatively small market capitalizations. You might be curious to see how the most widely held REITs fared in the screen. So here’s another list of the 20 largest U.S. REITs among the 119 that passed the first cut, sorted by market cap as of Nov. 28:
Company Ticker Dividend yield Estimated 2023 AFFO yield Estimated “headroom” Market cap. ($mil) Main concentration Prologis Inc. PLD,
+1.63% 2.84% 4.36% 1.52% $102,886 Warehouses and logistics American Tower Corp. AMT,
+0.75% 2.66% 4.82% 2.16% $99,593 Communications infrastructure Equinix Inc. EQIX,
+0.80% 1.87% 4.79% 2.91% $61,317 Data centers Crown Castle Inc. CCI,
+0.93% 4.55% 5.42% 0.86% $59,553 Wireless Infrastructure Public Storage PSA,
+0.19% 2.77% 5.35% 2.57% $50,680 Self-storage Realty Income Corp. O,
+0.72% 4.82% 6.46% 1.64% $38,720 Retail Simon Property Group Inc. SPG,
+1.03% 6.22% 9.55% 3.33% $37,847 Retail VICI Properties Inc. VICI,
+0.81% 4.69% 6.21% 1.52% $32,013 Leisure properties SBA Communications Corp. Class A SBAC,
+0.27% 0.97% 4.33% 3.36% $31,662 Communications infrastructure Welltower Inc. WELL,
+3.06% 3.66% 4.76% 1.10% $31,489 Health care Digital Realty Trust Inc. DLR,
+0.63% 4.54% 6.18% 1.64% $30,903 Data centers Alexandria Real Estate Equities Inc. ARE,
+1.49% 3.17% 4.87% 1.70% $24,451 Offices AvalonBay Communities Inc. AVB,
+0.98% 3.78% 5.69% 1.90% $23,513 Multifamily residential Equity Residential EQR,
+1.46% 4.02% 5.36% 1.34% $23,503 Multifamily residential Extra Space Storage Inc. EXR,
+0.31% 3.93% 5.83% 1.90% $20,430 Self-storage Invitation Homes Inc. INVH,
+2.15% 2.84% 5.12% 2.28% $18,948 Single-family residental Mid-America Apartment Communities Inc. MAA,
+1.83% 3.16% 5.18% 2.02% $18,260 Multifamily residential Ventas Inc. VTR,
+2.22% 4.07% 5.95% 1.88% $17,660 Senior housing Sun Communities Inc. SUI,
+2.12% 2.51% 4.81% 2.30% $17,346 Multifamily residential Source: FactSet Simon Property Group Inc.
SPG,
+1.03%
is the only REIT to make both lists.


