VIG - Analysts rate this as Below Average Risk, with Above Average Returns

https://stockcharts.com/h-sc/ui?s=vig

Vanguard Dividend Appreciation ETF NYSE

(Note that entire market is over-due for a ten-year cycle correction.)

REITs : Net Lease vs. Gross Lease

An excellent overview from
https://www.dividend.com/how-to-invest/reits-net-lease-vs-gross-lease/



Have you ever wished for the safety of bonds, but the return potential of common stocks? If so, preferred stocks are potentially a good choice to explore.

Real Estate Investment Trusts (REITs) are one of the most dividend-rich segments of the financial market. Understanding the lease structure of commercial REITs can help you identify optimal investment opportunities to include in your portfolio.

Commercial REITs give investors exposure to income-producing real estate in the form of offices, apartment buildings, warehouses, shopping centers and hotels, among others. Commercial real estate leases are generally broken down into three basic categories, which are based on two rent calculation methods: net and gross.

A gross lease requires the tenant to pay one lump sum for a rental property from which the landlord deducts expenses. A net lease has a smaller rental rate but requires the tenant to pay for other expenses.

Click here to learn more about the different types of REITs.

Gross Lease

Under a gross lease, the rent is all-inclusive, which means the landlord pays for all or most of the expenses associated with the property. This includes taxes, insurance, maintenance, utilities and janitorial services. A gross lease offers predictability for the tenant because they can forecast expenses without worrying about unexpected costs like maintenance. Under this arrangement, the landlord assumes all responsibility for maintaining the building.

Net Lease

In a net lease, the tenant is charged a lower base rent for the commercial space and is also on the hook for some or all of the associated costs. These costs often include real estate taxes, property insurance and common area maintenance items. Net leases are broken down into three sub-categories: single net lease, double net lease and triple net lease. Below is a breakdown of each.

• Single Net Lease: Tenant pays base rent plus a pro-rata share of the property tax, utilities and janitorial services. The landlord pays all other building expenses.

• Double Net Lease*: Tenant pays rent plus a pro-rata share of property tax and insurance, as well as janitorial and utility expenses. The landlord pays for repairs and common area maintenance.

• Triple Net Lease: Tenant pays all or part of the property taxes, insurance and common area maintenance on top of a base monthly rent. These tend to be more landlord friendly as they ensure predictability, which can help landlords better manage expenses down the road.

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Modified Gross Lease

To bridge the two calculation methods, there’s something called a modified gross lease. While similar to the gross lease in that the rent is requested up front in one lump sum, it can include any or all of the associated “nets,” such as property taxes, insurance and common area maintenance. For most buildings, utilities and janitorial services are excluded from the rent and covered by the tenant. The modified gross lease has proven to be more popular with tenants because it provides greater flexibility.

Use the Dividend Screener to find high-quality dividend stocks. You can even screen stocks with DARSratings above a certain threshold.

Implications for Investors

For investors, REITs with a triple net lease structure are easier to predict in terms of dividend payment. This makes them more attractive for yield-seeking investors, especially those nearing retirement or looking for steady income growth. STORE Capital (STOR ) is one of the most notable triple net REITproviders. The company focuses primarily on fragmented subsectors of the leasing industry, including middle-market and larger companies that don’t have credit ratings. As of 2017, STORE’s leadership team had invested more than $12 billion across 8,000 properties.

REITs structured around single or double net leases also make good investments. For example, W.P. Carey(WPC ) is a global provider of net lease REITs focused on long-term, sale-leaseback and build-to-suit financing solutions.

Realty Income (O ) is a net lease REIT that offers diversification across tenants, industry and geography. By the end of 2017, Realty Income had a portfolio of nearly 250 commercial tenants across 47 industries. It has also proactively managed rollover, including a 99.5% recapture (i.e., re-leasing prior rent).

Although REITs offer tremendous dividend-earning potential, they are highly sensitive to economic cycles and real estate dynamics. Historically, they have underperformed the market during periods of rising interest rates. As we’ve seen during the Federal Reserve’s latest rate-tightening cycle, higher borrowing costs have already impacted the market negatively. Investors should also pay attention to upfront fees, which tend to be exorbitant for non-traded REITs that might require an upfront fee of between 9 and 15%.

Don’t forget to read this article to learn more about how a REIT is valued.

The Final Word

Net lease REITs with long-term leases can provide your portfolio with a sense of stability and transparency. As the previous discussion illustrated, the triple net lease structure offers the most predictability for investors looking for stable earnings over long durations.

Only Your Best Work

Stop Doing Low-Value Work

Some good reminders from Harvard Business Review

By Priscilla Claman

In the past, time management experts would recommend that you divide up your work into A tasks, B tasks, and C tasks. The concept was to do the A tasks first, then the B tasks, then the C tasks, when you can get to them. If priorities changed, you just changed the order of your As, Bs, and Cs. Doing all aspects of a job seemed possible then, if you just followed some basic time management rules.

That kind of thinking ended during the recession of 2007-2009. Between January 2008 and February 2010, 8.8 million jobs were lost. Although the jobs went away, much of the work didn’t. Teachers ended up with more children in a classroom; customer service representatives ended up with more phone calls; and managers ended up with more people to manage as teams were consolidated. No matter the job, everyone ended up with a lot more work. And although there have been real gains in productivity since then, the days of A, B, and C tasks are over. Overwhelmed is the new normal.

Therefore, it’s actually a matter of professional life or death to get rid of your low-value work – tasks that mean little or nothing to customers or colleagues. Take an active approach. Design a new, do-able job for yourself. Here’s when to do it:

When you start a new job, you have a fresh perspective on what has to be done and you can see the low-value work more easily. Take a look at everything on your plate. Propose three-month goals to your manager, getting rid of as many useless tasks as you can.

When more responsibility is added to what you already do, you have an opportunity to restructure your work and present your plan. Offer choices to your manager: “Should I lead this task force considering it will take approximately 20% of my time? Or, should I…?”

When there is a reorganization, you have to be careful not to take on too much. People have a tendency to think they can’t say no or they will be the next person laid off. But actually, after a reorganization, the survivors are critical to the organization’s future success, so if you offer to restructure you own job, it will typically be perceived positively.

When you have done an amazing job of something and everyone is celebrating, it’s a great time to ask for something. Ask for help reducing your low-value work from your company’s productivity unit or information technology gurus.

And here’s how to do it:

Vote it off the island. A smart controller had been producing monthly reports for years that nobody read. He sent around a list of them and asked for votes for the most important three or four. He stopped producing the ones nobody used. Another approach is to ask your clients if you can not do something, just the way retail store clerks now ask people if they really want their receipts. The idea is simply to stop doing something that isn’t important, but to check first so that it doesn’t get you into trouble.

Automate it. If it’s low value, it’s easy to automate. Just find a friend in your IT function to help you do it. Whether you are talking about scheduling, acknowledging, or making standard arrangements, there are probably existing applications that you could use. Just figure out what you want to do, and find someone to help you do it.

Write your own rules. Limit what you are going to do and then make sure people know your rules. A professor decided to write personal references only for her advisees or the students in her seminars, and announced the fact to her lecture classes. It saved her hours of time.

Every week, block off the same time for yourself at work. Use the time to figure out how to get rid of your low-value work. Just an hour can make a difference. Pick a time, and stick to it. Close your door, if you have one, or find a conference room. It may take a while before people learn not to interrupt you during that time, but if you are politely persistent, it will work. Or, take the pediatrician approach and hold call-in hours — let people know when you will be available for interruptions of all kinds, and when you will not.

Redesign your own job. It’s your job, after all. Make it work for you. And stop doing that low-value work.

This post originally appeared on Harvard Business Review. 

Morgan Stanley buying Solium Capital shrinking field of billion-dollar Canadian tech companies

U.S. financial services giant Morgan Stanley is buying Calgary-based Solium Capital Inc. for $1.1-billion in the latest deal that will wrest a sizable technology player from Canadian control.

https://www.theglobeandmail.com/business/article-morgan-stanley-is-buying-calgarys-solium-capital-for-11-billion/

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