- I have found that fundamental analysis is a key component of understanding the outlook for a company’s future profitability and competitive forces.
- Understanding “ground level” economics is essential to understanding REITs.
- Surprisingly, few investors and analysts focus on uncovering businesses with the potential that they compound over time.
As a real estate analyst, it’s part of my job to dig deep into the balance sheet of a company. That means that I not only analyze the assets, liabilities, and income statement but I also talk to management, visit properties, and read other relevant research.
I have found that fundamental analysis is a key component of understanding the outlook for a company’s future profitability and competitive forces.
Many have asked me why I decided to write The Trump Factor: Unlocking the Secrets Behind the Trump Empire. I am in the process of finishing an updated version of the book (2 weeks away from launch) in which I have analyzed each property owned by the President of the United States and I have put together the most significant blueprint for his wealth creation agenda.
It took me years to travel to all of the markets that the President owns real estate, but after completing the research, I am now convinced that I am the only analyst in the world who has a grasp on the profits that are being generated by the Trump Organization, as opposed to the opinions of others.
Understanding “ground level” economics is essential to understanding REITs, because I view the stock as a piece of the business, while focusing on the cash that the business generates. When I analyze a REIT, I maintain a laser focus on the sustainability of the business – the economic moat that provide structural advantages to protect competitors, just as physical moats protect castles from enemies.
As many of you know, I spend countless hours on research as that is the way that I am able to generate the most alpha – as evidenced by the fact that my Durable Income Portfolio has returned over 9% year-to-date. My objective is to determine which REIT provides the most sustainability - a highly certain stream of modest profits is much more moat-worthy than a few years of extraordinary high returns.
Today, I decided to take a closer look at CBL Properties (CBL) to determine whether or not this beaten down Mall REIT has a sustainable competitive advantage. Surprisingly, few investors and analysts focus on uncovering businesses with the potential that they compound over time, and that is why I decided that I would “unlock the secrets behind this beaten down Mall REIT”.