My 4 Worst REIT Picks: Lessons Learned The Hard Way

My 4 Worst REIT Picks: Lessons Learned The Hard Way

I revisit four of my worst REIT picks—ARCP, MPW, SAFE, and IIPR—to extract hard-earned lessons and strengthen my investment process. ARCP's collapse highlighted that broken trust and poor management culture override apparent value and yield, making a swift exit essential when the thesis changes. MPW and IIPR exposed the dangers of chasing yield amid tenant fragility, leverage, and unreliable cash flows, while SAFE revealed the underestimated risk of duration in a rising-rate environment. Across these cases, I emphasize that durable business models, management trust, and diversification are critical; no yield or structure compensates for fundamental weaknesses.

I previously promised readers that I would do something most investment writers would rather avoid: revisit several of my worst REIT picks of all time. As I explained, “There will be no excuses or cherry-picking This article was written by Brad Thomas 119.67K Followers Follow Brad Thomas has over 30 years of real estate investing experience and has acquired, developed, or brokered over $1B in commercial real estate transactions. He has been featured in Barron's, Bloomberg, Fox Business, and many other media outlets. He's the author of four books, including the latest, REITs For Dummies. Brad, along with HOYA Capital, lead the investing group iREIT®+HOYA Capital. The service covers REITs, BDCs, MLPs, Preferreds, and other income-oriented alternatives. The team of analysts has a combined 100+ years of experience and includes a former hedge fund manager, due diligence officer, portfolio manager, PhD, military veteran, and advisor to a former U.S. President. Note: Brad is also related to Nicholas Thomas who contributes to Seeking Alpha. Learn mo...