REITs In The Age Of Tariffs

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Welcome to the Real Income Report for the week of March 31, 2025.

We have quite a week ahead of us with an enormous amount of news coming our way, including "Liberation Day" or "Tariff Day" – whatever we want to call it – which will occur on Wednesday when we finally find out exactly what tariffs will be leveled against whom.

Of course, that is not going to be the final list.

We get new tariff threats almost each and every day.

It is getting exhausting. We know tariffs are going to happen.

We know there is going to be argument and discussion about it.

We know there are probably going to be new tariffs and threats of tariffs as we go down the road.

We've explained the bell curve of possible outcomes.

We've been all over that in great detail.

If you need more on tariffs, I'm going to suggest that Peter Earle at AIER.org and Donald Boudreaux, an economics professor at George Mason University who has a site called Cafe Hayek would be your best reads to understand tariffs and their historical unexpected economic impact.

We can beat this one over the head continuously, or we can move on to something that's probably more interesting and more exciting.

Portfolio Update

Looking at our portfolio, we have no portfolio news to speak of this week.

We own an incredibly high-quality portfolio of REITs. We have open-air shopping centers. We have warehouses all over the United States. We have some carefully selected office buildings, including office buildings in the key west of downtown market out in Los Angeles and other in the heart of the Sunbelt.

We have lots of medical office buildings, my single favorite segment of the office market. We have standalone clinics and surgical centers and all of the outpatient facilities that have become so prevalent today.

You know, fifteen years ago, if you had almost any procedure done, you were at least an overnight in the hospital.

Today, you can have fairly serious surgical procedures and be in and out in six, seven, eight hours with the whole thing done, and you are recuperating at home.

The world has changed, and so has the need for certain medical real estate.

We own a lot of it.

We own luxury hotels.

We own middle market hotels.

We've got the hotel market covered.

We've got warehouse spaces all over the United States. We have open-air shopping centers that are anchored by grocery stores.

Of course, we have casinos, lots of casinos. We are very close to a corner on the publicly traded casino real estate market in the United States.

Apartment REITs

We have two apartment REITs.

We would like to have more.

We did just add our second one last week…

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