Existing home sales are still slipping, J.P. Morgan bets billions on timberland, this week in inflation (what inflation?), WFH apartment accommodations, and one REIT's bet on senior housing.
In Today's News
Existing Home Sales Down for Fourth Straight Month
The National Association of Realtors (NAR) reported today that existing home sales decreased for a fourth straight month in May. The NAR said that only one U.S. region (the Midwest) recorded a month-over-month increase, while the other three regions saw sales decline.
The Millionacres takeaway: While each of the four areas again registered double-digit year-over-year gains, the NAR says home sales are now reaching pre-pandemic levels, and the trade group expects more supply to come on the market, helping to tamp down skyrocketing prices.
J.P. Morgan Asset Management Plunks Down $5.3 Billion for Timberland
J.P. Morgan (NYSE: JPM) Asset Management has acquired Campbell Global LLC, a Portland, Oregon, firm that manages $5.3 billion worth of timberland on behalf of institutional investors, such as pensions and insurance companies, The Wall Street Journal reports [subscription required].
The Millionacres takeaway: Things being as they are in this topsy-turvy world, this purchase is really about not selling timber -- to gain carbon offsets -- but its effect is also something to consider for those who invest in similar companies, such as timberland REITs (real estate investment trusts).
The Week Inflation Panic Died
For those paying close attention to the flow of new information, inflation panic is, you know, so last week, says New York Times opinion columnist and Nobel laureate Paul Krugman.
The Millionacres takeaway: Krugman's piece is a must read if you want to understand the highline reasons why recent price surges don't mean inflation is about to rear its ugly head big time -- those reasons including his skepticism that a post-pandemic recovery will provide major fuel for that fire.
Today on Millionacres
Apartment Landlords Are Increasingly Offering Remote-Work Amenities: Should You?
Before the pandemic, many apartment renters focused on amenities like gym facilities and swimming pools. Now, they're increasingly looking for amenities that make it easier to do their jobs from home. And that's a trend landlords should be aware of.
The Millionacres takeaway: Our Maurie Backman details some of those amenities and notes that a large number of people are likely to continue working remotely in some capacity for the foreseeable future, so residential landlords can boost their own fortunes if they make the right accommodations.
This REIT Is Making a Bold Bet on the Future of Senior Housing
While there's some concern that the pandemic could have a long-term impact on senior housing occupancy levels, that's not causing healthcare REIT Welltower (NYSE: WELL) to shy away from the sector. Instead, it's making a bold bet on its recovery by purchasing a portfolio of senior housing properties.
The Millionacres takeaway: Our Matthew DiLallo explains that besides the favorable valuations in the deal, current construction costs are making it uneconomical for much new construction, thus paving the way for even more dividends for existing facilities.