Don't fall for these REITs!

The REIT management structure matters. Some REITs are internally managed and others are externally managed. To give you a few examples: Medical Properties Trust (MPW) is internally managed because it hires its management as employees of the REIT. But Global Net Lease (GNL) is externally managed as it outsources the management to an outside asset management firm. The external management structure creates significant conflicts of interest as it incentivizes the REIT to issue a lot of shares, often at dilutive prices, to grow the portfolio as large as possible. It hurts shareholders but leads to higher fees for the manager. It is not necessarily illegal and so calling it a scam may be a stretch, but it hurts shareholders.

Image sources: GNL, ILPT, Interactive Brokers, YCHARTS, Canva

Important Disclaimer: Leonberg Capital OÜ does not hold positions in the REITs highlighted in this video. This video is impersonal and does not provide individualized advice or recommendations for any specific person. Viewers/readers should not make any investment decision without conducting their own due diligence and consulting their financial advisor about their specific situation. This video is for entertainment purposes only and you are responsible for your own investment decisions. The information is obtained from sources believed to be reliable, but its accuracy cannot be guaranteed. The opinions expressed are those of the publisher and are subject to change without notice. This YouTube channel is managed by Leonberg Research OÜ, a subsidiary of Leonberg Capital OÜ.

#reits #reit #passiveincome

[askjussi]

What are the worst REITs to buy today? Let me know what you think below.
Also, please like and subscribe. Thanks a lot! :)

[rudygoofysrh]

Thank you for sharing the great information today. You’re awesome!

[methioswar]

Dont mind me, just going through all your (awesome) vids putting comments to help with your algorithm :)

[iatatekin]

Thank you for all the information. I knew your name from SA. I think making YouTube videos is great idea! 😊

[keppipappa]

Moro Jussi!
Have you taken a look at Medical Properties Trust (MPW) and how do you feel about that Reit? I'm interested at these price levels.

Big fan of your work!

[keithss]

I’m a shareholder in OPI. I bought it way back when it was GOV. I had at the time no idea of internal and external management. It had a solid track record of good performance and of paying a good dividend. The REITs external manager retired and his son took over (Adam Portnoy) and that’s when things started to go into the toilet. It’s been a total mess since. I have been buying more to bring down my cost basis in the hopes of exiting when it pops (if it pops) but this is absolutely the last time I ever buy a REIT that is externally managed! Been a train wreck since 2018

[Sanumkipaheli]

Yes but these are things you find out after you have bought in. How do you find out before buying in?

[AAGGHH]

Feel like MPW should be on this list. done nothing but collapse. Luckily its only a small position in my portfolio but damn, that things been a terrible investment. Dont even feel like its worth selling now.

[bigjohn]

Jussi, you are right about ILPT. It has been a disaster for the shareholders. I'm glad I'm not one of them. What do you think of it now, at around $2.25/sh?

[alyesma]

Would ILPt priced at $3 be a good asset play even if it was heading for bankruptcy?

[grc]

I wish I could give you 10-stars... 10-stars....

[keithss]

I owned Monmouth. Was happy to sell it to them at a nice profit 😅

[ionsufana]

Good video as usual; however the movements of the hands in front of camera, make me tired. I know the reason behind, but still 😇 too much 😊

[TimothyGonzalez-hw]

Martin Shirley Martin Angela Thompson Lisa

[mikemcniel]

And one year later you want us to buy ilpt...joke