Valuentum Exclusive Analysis for the Discerning Investor

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Feb 23, 2022

High-Yielding Life Storage Has Tremendous Dividend Strength
Image Shown: Life Storage Inc is committed to rewarding income seeking investors. Image Source: Life Storage Inc – January 2022 IR Presentation. We are huge fans of Life Storage and the self-storage industry. Life Storage owns 1,000+ self-storage properties across 30+ states and has received an investment grade credit rating (Baa2/BBB) from two of the ‘Big Three’ rating agencies. The REIT also operates a third-party management platform for self-storage properties. The company’s financials are rock-solid and recent guidance increases speak favorably towards its near term outlook. Shares yield a solid ~3.1% at the time of this writing.

Feb 21, 2022

High-Yielding Income Growth Idea Digital Realty Expects Business Will Continue Recovering
Image Shown: We are big fans of Digital Realty Trust Inc’s global footprint. Image Source: Digital Realty Trust Inc – Fourth Quarter of 2021 IR Earnings Presentation. On February 17, Digital Realty Trust reported fourth quarter 2021 earnings that beat both consensus top- and bottom-line estimates, though its near term guidance came in a tad softer than expected. The data center real estate investment trust (‘REIT’) is facing headwinds from vintage leases rolling off and concerns about surging power costs around the world. On the plus side, Digital Realty is experiencing decent growth at the part of its business where re-leasing terms have been more favorable, and its contracts generally include provisions that allow the REIT to pass on electricity expenses to its tenants. We include Digital Realty as an idea in both the Dividend Growth Newsletter and High Yield Dividend Newsletter portfolios.

Feb 16, 2022

Dividend Growth Idea Realty Income Makes an Intriguing Purchase
Image Shown: Dividend growth idea Realty Income Corporation is acquiring its first real estate property in the gaming realm through a sale-leaseback transaction with Wynn Resorts Limited. Image Source: Realty Income Corporation – February 2022 IR Presentation. On February 15, dividend growth idea Realty Income Corp announced its 620th consecutive monthly dividend. Since going public in 1994, Realty Income has increased its monthly payout over 110 times. Realty Income is a real estate investment trust (‘REIT’) focused on single-tenant commercial properties. We include the REIT as an idea in the Dividend Growth Newsletter portfolio and continue to be big fans of Realty Income. Shares of O yield ~4.4% as of this writing.

Jan 4, 2022

ICYMI: Dividend Growth Idea Realty Income Completes Transformation, Further Expands Overseas
Image Shown: An overview of dividend growth idea Realty Income Corporation’s tenant base, though this appears to be before taking into account its recent merger with VEREIT and spinoff of its corporate office properties portfolio. Image Source: Realty Income Corporation – November 2021 IR Presentation. On November 1, Realty Income Corp completed its stock-for-stock merger with VEREIT, a deal that according to an April 2021 press release had an enterprise value of ~$50 billion. When the merger closed, shareholders of Realty Income owned ~70% of the new entity and shareholders of VEREIT owned the remainder. Realty Income is a real estate investment trust (‘REIT’) with a vast commercial property portfolio that pays out monthly dividends. We are big fans of the REIT and include Realty Income as an idea in the Dividend Growth Newsletter portfolio. Shares of O yield ~4.0% as of this writing.

Dec 24, 2021

High-Yielding Crown Castle Is One of Our Favorite REITs
Image Shown: We include Crown Castle International Corp as an idea in our High Yield Dividend Newsletter portfolio. Image Source: Crown Castle International Corp – October 2021 IR Presentation. Crown Castle International Corp is a real estate investment trust (‘REIT’) that owns and operates cell towers, fiber networks, and small cell nodes in the US. These assets form the backbone of wireless infrastructure and are key to enabling the domestic rollout of 5G networks and supporting existing 4G networks. We include shares of CCI in our High Yield Dividend Newsletter portfolio as we are big fans of its strong dividend coverage (when taking its ability to tap capital markets into account), impressive growth outlook, and high-quality cash flow profile. Shares of CCI yield ~2.9% as of this writing after the REIT boosted its quarterly dividend by 11% sequentially in October 2021, bringing its annualized payout up to $5.88 per share. Over the long haul, Crown Castle targets 7%-8% annual dividend growth. The REIT’s expansive asset base stretches across the US with operations in virtually every major metropolitan market. Crown Castle’s long-term contracts with its tenants (namely telecommunications giants) provide substantial visibility as it concerns its future cash flow performance. Additionally, Crown Castle generates substantial free cash flows, something we like a lot.

Nov 18, 2021

High-Yielding Idea CyrusOne Gets Bought!
Image Shown: CyrusOne, an idea in the High Yield Dividend Newsletter portfolio, announced it was getting bought out on November 15. CyrusOne, a data center real estate investment trust (‘REIT’) included as an idea in the High Yield Dividend Newsletter portfolio, announced on November 15 that the private equity firm KKR & Co Inc and the infrastructure investment fund Global Infrastructure Partners (‘GIP’) is buying the REIT for $90.50 per share in cash.

Nov 8, 2021

ALERT: High Yield Dividend Newsletter Portfolio Changes
Image: Mike Cohen. Calendar third-quarter results were solid for constituents in the High Yield Dividend Newsletter portfolio, and we look forward to a bright 2022!

Oct 27, 2021

Digital Realty Boosts Guidance and Further Extends Growth Runway
Image Source: Digital Realty Trust Inc – Third Quarter of 2021 IR Earnings Presentation. On October 26, Digital Realty Trust posted third quarter 2021 earnings that beat both consensus top- and bottom-line estimates. The data center real estate investment trust (‘REIT’) saw its GAAP operating revenues come in at $1.1 billion (up 11% year-over-year) and its non-GAAP core funds from operations (‘FFO’) per share come in at $1.65 per share (up 7% year-over-year) last quarter. Digital Realty also increased its guidance in conjunction with its latest earnings report, which we appreciate, as that signals the REIT is growing confident that it will exit 2021 on a high note. When taking into consideration Digital Realty’s ability to tap capital markets at attractive rates (something we cover in this article), we give the REIT a “GOOD” Dividend Safety rating as its adjusted Dividend Cushion ratio is near parity at 0.7, which factors in expected dividend growth over the coming years. Additionally, we give Digital Realty a “GOOD” Dividend Safety rating, underpinned by its bright cash flow growth outlook. The top end of our fair value estimate range sits at $186 per share of DLR, well above where Digital Realty is trading at as of this writing.

Oct 13, 2021

High-Yield Idea CyrusOne Considers Selling Itself
Image Shown: Shares of CyrusOne, an idea included in our High Yield Dividend Newsletter portfolio, are on a modest upward climb of late. The data center real estate investment trust (‘REIT’) is reportedly considering putting itself up for sale, though we like the REIT’s income generation upside regardless of whether a sale does materialize as its outlook continues to improve after posting stellar performance during the first half of 2021. Reportedly, CyrusOne is actively exploring a potential sale according to Reuters. We include shares of CONE as an idea in the High Yield Dividend Newsletter portfolio. The data center real estate investment trust (‘REIT’) has experienced significant turnover in its top ranks over the past couple of years which we will cover briefly, as that likely set the stage for the potential sale. Should CyrusOne decide not to sell itself, we would still be fans of its business model, growth runway, improving outlook, and income generation potential. Let's dig into latest developments in this article.

Sep 9, 2021

Digital Realty Is a Stellar Income Growth Idea
Image Source: Digital Realty Trust Inc – September 2021 IR Presentation. Digital Realty Trust is a carrier-neutral data center real estate investment trust (‘REIT’) that provides co-location and interconnection services. The REIT has grown its annual dividend over the past 15+ consecutive years, and we view Digital Realty as a stellar income-generation idea. As of this writing, shares of DLR yield ~2.8%. We include shares of DLR as an idea in both the Dividend Growth Newsletter and High Yield Dividend Newsletter portfolios. Investors have been steadily warming up to Digital Realty this year, with shares of DLR up ~23% year-to-date, and we see room for additional upside as the top end of our fair value estimate range sits at $186 per share of Digital Realty.