Saudi Prince Plans a 'City of the Future.' Don't Bet on It

From time immemorial, rulers have built new cities to satisfy everything from security to vanity. Some of those cities crumbled into obsolescence; others blossomed into capitals of legend. The recipe for success remains elusive, but that hasn’t stopped successive generations from trying. And if recent moves are any gauge, the 21st century will see a surge of new and often grandiose plans.

The most recent and among the highest profile comes from the deserts of the Middle East, where Saudi Arabia’s crown prince Mohammed bin Salman recently unveiled plans to spend upwards of $500 billion to construct his city of the future, Neom. Like rulers before him, bin Salman’s motives are a mix of vanity and pragmatism. Since the middle of the last century, Saudi Arabia has floated on a sea of oil, and the royal family has accumulated massive wealth. That formula worked for decades, but with a burgeoning population and the price of oil plateauing, the country is facing an uncertain future. Neighboring Dubai and other emirates have surged ahead with their own imagined metropolises, spending hundreds of billions for new towers, museums, reclaimed land, and planned communities. Many of those have drawn people, attention and business, although Masdar, a planned satellite of Abu Dhabi that was supposed to be an exemplar of a carbon-neutral future, has burned through billions with little to show.

The plan for Neom is to be bigger, newer, and more technologically advanced than anything that has come before. Early promises include a pledge to use renewable energy and integrate robotics into the DNA of the city. Promising a “civilizational leap for humanity,” bin Salman has suggested that the final city could have more robots than humans and be a model for how humanity lives in the next century when population begins to decline globally.

Rock outcrops stand in the desert near the bay at Ras Hameed, Saudi Arabia. It is here that Saudi Arabias crown prince plans Neom, a city from scratch that will be bigger than Dubai and have more robots than humans.

Glen Carey/Bloomberg/Getty Images

Given that Neom is now little more than barren acreage and the fertile imagination of the crown price backed by oil billions, it’s hard to say how much of this vision will be realized. New cities are always unveiled with an excess of hyperbole and a dearth of practicality. In that sense, they are much like startups, brimming with hope and an optimism, intent on changing the world and solving problems ranging from overpopulation to transportation to air quality and affordability.

The legacy of planned cities in recent years is mixed at best. Some were built as new capitals for governments that wanted to reduce corruption and improve bureaucratic efficiency or wanted to break the hold of traditional elites by detaching them from carefully cultivated power bases. That is hardly a new concept. Louis XIV moved his court to the palace of Versailles for many of those reasons.

In light of the mixed legacy of planned cities, taking the rhetoric down a notch might be wise; in fact, a dose of humility might make these ventures more realistic and more likely to succeed. But pragmatism and modesty rarely galvanize, excite, or motivate. Invented cities are like urban startups, full of utopian optimism, ego, and often arrogance. That is often what makes it possible to build something grand from nothing, and it is often why these cities are so unrealistic and prone to less-than-optimal results.

Take the moves by the military junta in Myanmar to move the capital from Rangoon (Yangon) 180 miles north to Naypyidaw in 2005. As urban planning, its success is questionable. To avoid public demonstrations that might imperil the regime, the city was designed with no public squares of any size. The new capital is vast—six times the size of New York City. It is in the middle of nowhere, and visitors describe a nearly empty feeling, with few signs of life on its many-laned highways and streets, not to mention its plethora of golf courses. If the goal was to get an easy tee time, the city is a success; if it was to preserve the power of the military regime, that clearly failed. The military retains substantial power, but it was forced to cede some control to the elected government of Nobel laureate Aung San Suu Kyi in 2015

Or take Astana, the invented-out-of-whole-cloth capital of Kazakhstan, which was constructed starting in 1997. Funded entirely by the former Soviet republic’s oil money and the vision—or ego—of its ruler Nursultan Nazarbayev, Astana rises in the middle of the Asian steppe, with massive glass-clad towers, arenas and parks. After a decade of near emptiness, Astana is filling out and now has a population approaching a million. It has been a boon for architectural creativity, but its effects of the Kazakh economy are less clear, aside from the expected boost to GDP from the constant construction.

Brasilia, the capital of Brazil, was constructed in the late 1950s. It was meant to showcase Brazil’s emergence as a modern country, leading the way for the southern hemisphere. Meticulously planned by the architect Oscar Niemeyer, it won accolades from designers and urban planners with its sweeping boulevards and layout designed to accommodate a car culture and the needs of a modern bureaucratic state. Much like Washington, DC (another invented city), Brasilia was a geographic compromise that for many years pleased no one. But the population has grown, perhaps too much, and the city has settled into itself, not loved but no longer loathed. Brazil, however, has struggled with decades of corruption and erratic economic progress. Brasilia was meant to end those struggles; it did not.

Some invented metropolises are more clearly products of vanity and megalomania. The late-not-so-great Felix Houphouet-Boigny may have been the first leader of the newly independent Ivory Coast in 1959, but he clung to power and in his waning years, moved the capital from Abidjan to Yamoussoukro, the village where he was born. He then spent $200 million in the late 1980s to begin construction of a basilica that copied the design of Bernini’s Vatican, only bigger, in a country with a Muslim majority and an annual per-capita income of less than $1,000. Needless to say, Ivory Coast over the past two decades since his death has seen neither grandeur, peace, nor much in the way of prosperity.

Others start with grand dreams and end with more proletarian realities. South Korea’s Songdo, begun in 2000, has cost $35 billion and counting and was conceived as a model for future cities, with wide lanes, a mix of commercial and residential development, and a robust transportation network. Filled with parks, bike lanes, and business hubs, Songdo has been attractive mostly to middle-class Koreans who either can’t afford or dislike Seoul. That isn’t a bad thing, but it is has yet to embody its status of “city of the future,” which was its initial purpose.

More modest in scale but equally grand in vision is the partnership between Alphabet’s Sidewalk Labs and the city of Toronto to redevelop 12 acres as an incubus of a new modernism. If anyone might succeed in reinventing an urban space, it’s Alphabet and the Canadians, who have quietly morphed into the apostles of good government and innovation as the US recedes into its Washington soap opera. It bears watching, but the rocky history of previous ventures bears remembering.

For every St. Petersburg (also an invented city, in the early 18th century when Peter the Great built his own city far removed from Moscow), and Washington, DC (which was underpopulated and widely disliked well into the late 19th century), there is a Yamoussoukro or a Naypyidaw.

Traipsing through these thumbnails of cities past, what can we say about whether the half-a-trillion Neom will fulfill its grandiose promise and dreams? If the past is prologue, probably not. But perhaps that shouldn’t matter so much. It may live up to only a portion of its promise, but if it galvanizes creativity and innovation, if it provides a more hopeful model for the future of the Middle East, away from oil and religious conflict and towards urban solutions infused with the best of technology, then it won’t matter if it fulfills all of its dreams. It will matter if it nudges society in the direction of real progress rather than toward the nihilism of revolution and the sclerosis of a royal family draining resources rather than creating them. Some humbleness is certainly in order, as well as a sober eye to how past projects have gone, but it will be better for all of us if Neom only partly succeeds than if it never happens at all.

High tech, high finance and high times for U.S. pot industry

(Reuters) – Two years ago, Alan Gertner was head of Google’s Asia-Pacific sales team in Singapore, handling more than $100 million in business.

Pipes are displayed for sale in the cannabis themed cafe chain Tokyo Smoke in Toronto, Ontario, Canada November 29, 2017. Picture taken November 29, 2017. REUTERS/Chris Helgren

Now, he begins his day in a small Toronto office, building a cannabis brand that sells fancy smoking accessories such as vaporizers and bongs that cost up to $335 CAD ($261.72 USD).

Gertner is among a growing group of entrepreneurs and investors who are trading in high-paid corporate jobs in the technology and finance sectors to launch start-ups focused on the fast-growing marijuana industry.

Two decades after the first legalization of medical marijuana by a U.S. state, pot-based businesses are professionalizing their operations by luring top talent from other industries and billions of dollars in investments from Wall Street firms. A new commodity index even offers data on the going rates for greenhouse and field-grown weed.

Gertner still gets surprised reactions to his career change, as when his mother asked: “Can’t you just get another job at Google?”

And yet he’s raised $10 million in capital in ten months as the chief executive of Toyko Smoke, despite the continuing taboos and legal risks in the industry.

The legal cannabis market, currently worth about $8 billion, is predicted to triple in size to $22.6 billion in total annual sales by 2021, according to cannabis industry tracker, Arcview Market Research. That could make it bigger than the America’s most profitable sports organization, the National Football League, which saw about $13 billion in revenue last year and aims to reach $25 billion by 2027.

So far in 2017, there have been at least 27 investments by venture capital funds in cannabis companies, compared with just 10 deals in 2016 and 9 deals in 2015, according to venture capital data provider CB Insights.

The influx of capital helps finance the paychecks of 150,000 workers in the legal U.S. pot industry, representing job growth of 20 percent from a year ago, according to an estimate from the cannabis website Leafly, a marketing firm for dispensaries and other cannabis firms.

Eric Eslao, founder of Defonce Chocolatier – which makes artisanal cannabis-infused chocolates costing $20 a bar – was a senior production manager at Apple just over a year ago. He feared the stigma of joining the weed industry, but it didn’t stop him.

“The opportunity was too good not to make the jump,” he said.

LEGAL RISKS, CHALLENGES

Thirty states have legalized marijuana for recreational or medical use, but possession and sale is still banned at the federal level.

(For a map detailing marijuana laws in U.S. states, see: tmsnrt.rs/2AFalvZ)

The administration of President Donald Trump has sent mixed signals on its enforcement policy. Attorney General Jeff Sessions has vowed to crack down on the pot trade in states with legalization laws, but Trump has extended a ban on using federal funds to interfere with the industry through the end of this year.

Americans increasingly support marijuana legalization, according to the Reuters/Ipsos opinion poll. The number of adults who believe it “should be legal” to possess small amounts of marijuana rose to 54 percent in a poll conducted between Oct. 27 and Nov. 10, up from 41 percent in a similar poll in 2012.

Still, the specter of federal enforcement makes it difficult for cannabis-related firms to get banking services. Many continue to deal in cash or pay hefty fees for accounts.

The banks that work with cannabis-related firms are mostly community institutions in states where the industry is legalized, and their service is limited to accepting cash deposits.

A woman holds a clutch used for storing marijuana which is for sale in the cannabis themed cafe chain Tokyo Smoke in Toronto, Ontario, Canada November 29, 2017. Picture taken November 29, 2017. REUTERS/Chris Helgren

Cannabis investment is still dominated by wealthy individuals, but that is changing as the industry grows, attracting venture capitalist and equity investors who until recently were reluctant to finance cannabis firms.

They are drawn by a wide-open landscape of opportunity, said Eric Hippeau, managing partner at Lerer Hippeau Ventures, a New York-based venture capital firm well-known for its investments in high-profile media startups such as Twitter Inc and Buzzfeed.

“It’s an industry that is starting from scratch with no infrastructure,” Hippeau said. “There are many promising cannabis-related software startups that are able to easily raise money.”

Some of these startups provide seed-to-sale cannabis tracking system software and inventory management. Hippeau Ventures earlier this year joined a $3 million funding round for LeafLink, a business-to-business platform that provides a market for dispensary owners to buy inventory.

Other prominent venture firms that have warmed to cannabis include Founders Fund, started by PayPal co-founder Peter Thiel, which has invested in Privateer Holdings, a cannabis private equity firm. Prominent Silicon Valley venture capitalists 500 Startups, DCM Ventures, along with New York-based Great Oaks Venture Capital, have all backed Eaze, a medical marijuana delivery app that allows patients to order cannabis on demand.

“The stigma is slowly going away, and you are seeing some real talent, in terms of technology entrepreneurs and quality engineers,” said Kyle Lui, a principal at DCM Ventures.

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Investors who have taken the initial plunge into the quasi-legal marketplace seem eager to take on more exposure, said Jim Patterson, CEO of Eaze, a three-year old company has raised $51.5 million in five rounds from more than a dozen investors.

Such firms believe its “a good time to double down,” Patterson said.

RISK MANAGEMENT

Some investors have steered toward technology and support services, which carry less legal risk than cultivating or selling the weed itself.

These include dating apps for cannabis users such as High There and My420Mate, as well as WeGrow, an educational app that teaches people how to grow cannabis. HelloMD is an online platform connecting doctors and cannabis patients.

Among the signs the market is maturing is the development of information services that collect data on trading of cannabis and publish guideline prices. Similar services are common across commodity markets – from oil and gas to corn and cotton – and are used by industry participants as price benchmarks.

New Leaf Data Services LLC, a Stamford, Connecticut-based start-up, published its first assessment of U.S. cannabis prices about two years ago. Newleaf compiles information gathered from cultivators and dispensaries, transaction data from market participants and data from vendors and associations.

Investors can also follow the value of marijuana firms through stock market indexes such as the Horizons Marijuana Life Sciences Index ETF, which tracks the performance of a selection of publicly listed cannabis companies in North America.

The value of the index is up about 70 percent over the last three months, thanks to star performers such as Canopy Growth Corp, a producer and retailer of medical cannabis products – up 112 percent for the year – and Aphria Inc, a cannabis producer, up 132 percent this year. “The cannabis business is really about risk arbitrage. There are chances of a higher return because the risk is high,” Patterson said. “Investors get that.”

The long-term risk may be lower, however, as a growing number of Americans express support for marijuana legalization and the industry creates jobs and tax revenues.

U.S. residents also seem increasingly aware of the futility in preventing illegal marijuana use, said Ian Laird, a lawyer and co-founder of New Leaf.

“The evolution or rollback of prohibition is inevitable,” he said. “It’s not like it stopped anyone from getting it.”

Additional reporting by Chris Kahn and Saqib Iqbal Ahmed; Editing by Simon Webb and Brian Thevenot

Our Standards:The Thomson Reuters Trust Principles.

Facebook for 6-Year-Olds? Welcome to Messenger Kids

Facebook says it built Messenger Kids, a new version of its popular communications app with parental controls, to help safeguard pre-teens who may be using unauthorized and unsupervised social-media accounts. Critics think Facebook is targeting children as young as 6 to hook them on its services.

Facebook’s goal is to “push down the age” of when it’s acceptable for kids to be on social media, says Josh Golin, executive director of Campaign for a Commercial Free Childhood. Golin says 11-to-12-year-olds who already have a Facebook account, probably because they lied about their age, might find the animated emojis and GIFs of Messenger Kids “too babyish,” and are unlikely to convert to the new app.

Facebook launched Messenger Kids for 6-to-12-year olds in the US Monday, saying it took extraordinary care and precautions. The company said its 100-person team building apps for teens and kids consulted with parent groups, advocates, and childhood-development experts during the 18-month development process and the app reflects their concerns. Parents download Messenger Kids on their child’s account, after verifying their identity by logging into Facebook. Since kids cannot be found in search, parents must initiate and respond to friend requests.

Facebook says Messenger Kids will not display ads, nor collect data on kids for advertising purposes. Kids’ accounts will not automatically be rolled into Facebook accounts once they turn 13.

Nonetheless, advocates focused on marketing to children expressed concerns. The company will collect the content of children’s messages, photos they send, what features they use on the app, and information about the device they use. Facebook says it will use this information to improve the app and will share the information “within the family of companies that are part of Facebook,” and outside companies that provide customer support, analysis, and technical infrastructure.

“It’s all that squishy language that we normally see in privacy policies,” says Golin. “It seems to give Facebook a lot of wiggle room to share this information.” He says Facebook should be clearer about the outsiders with which it may share data.

In response to questions from WIRED, a spokesperson for Facebook said: “It’s important to remember that Messenger Kids does not have ads and we don’t use the data for advertising. This provision about sharing information with vendors from the privacy policy is for things like providing infrastructure to deliver messages.”

Kristen Strader, campaign coordinator for the nonprofit group Public Citizen, says Facebook has proven it cannot be trusted with youth data in the past, pointing to a leaked Facebook report from May that promised advertisers the ability to track teen emotions, such as insecurity, in real-time. “Their response was just that they will not do similar experiments in the future,” says Strader. At the time, advocacy groups asked for a copy of the report, but Facebook declined.

Tech companies have made a much more aggressive push into targeting younger users, a strategy that began in earnest in 2015 when Google launched YouTube Kids, which includes advertising. Parents create an account for their child through Google’s Family Link, a product to help parents monitor screentime. FamilyLink is also used for parents who want to start an account for their kid on Google Home, which gets matched to their child’s voice.

“There is no way a company can really close its doors to kids anymore,” says Jeffrey Chester, executive director for the Center of Digital Democracy. “By openly commercializing young children’s digital media use, Google has lowered the bar,” he says, pointing to what toy company Mattel described as “an eight-figure deal” that it signed with YouTube in August.

Chester says services such as YouTube Kids and Messenger Kids are designed to capture the attention, and affinity, of the youngest users. “If they are weaned on Google and Facebook, you have socialized them to use your service when they become an adult,” he says. “On the one hand it’s diabolical and on the other hand it’s how corporations work.”

In past years, tech companies avoided targeting younger users because of the Children’s Online Privacy Protection ACT (COPPA), a law that requires parental permission in order to collect data on children under 13. But, “the weakness of COPPA is that you can do a lot of things if you get parental permission,” says Golin. In the past six months, new apps have launched marketed as parent helpers. “What they’re saying is this is great way for parents to have control, what they are getting is parental permission,” says Golin.

Several children-focused nonprofit groups endorsed Facebook’s approach, including ConnectSafely and Family Online Safety Institute (FOSI). Both groups have received funding from Facebook.

A Facebook spokesperson says, “We have long-standing relationships with some of these groups and we’ve been transparent about those relationships.” The spokesperson says many backers of Facebook’s approach, including Kristelle Lavallee of the Center on Media and Child Health, and Dr. Kevin Clark of George Mason University’s Center for Digital Media Innovation and Diversity, do not receive support from Facebook.

How to Keep Your Kids Safe Online

Let’s face it: the internet can be a nasty place. Between predators, malware, explicit content, and other bad actors, parents can find themselves in a never ending cycle of doom and gloom as they try to fend off every threat their kids might face online.

It’s a tricky situation without a perfect solution, and it can be tough to know where to start. There are parental blocks, antivirus software, kid friendly browsers, and the temptation to avoid the stress and ban the internet altogether. But Dave Lewis, a global security advocate at Akamai Technologies, says the most important thing actually has nothing to do with technology: it’s all about having an open conversation with your kids.

The framing of that conversation is key, Lewis says. When you’re talking with your children about the dangers of the internet, you should be engaging and non-confrontational. “Kids really are information sponges, so if you package it in a way that makes them feel like they’re learning something, you’ll get a better return on that investment,” he says.

Instead of throwing down all of the scary things that can happen once they log on, Lewis suggests parents act as positive guardians, putting the right tools in place to keep their kids safe while also teaching them how to do it themselves. That means being aware of where your children should be going at their age, which he says is important as kids become tech savvy earlier. “There’s no reason for a kid around seven to have a Facebook or Twitter account,” he says, “They don’t need that level of exposure to the world, they still need a chance to be kids.” (It’s also against Facebook’s Terms of Service.)

Kids also need to be aware of the dangers of responding to messages from strangers, and Lewis suggests parents ensure kids feel safe coming to their parents with concerns about those things, so they feel comfortable letting an authority navigate that situation in a safer manner. This is going to be even more important as more companies make products specifically for kids, like Facebook’s trying to do with its new Messenger Kids.

Once that part’s covered, there are some specific tools Lewis suggests parents take advantage of before handing the reins to their kiddos. First comes setting up parental controls and filters: You can use software like Net Nanny and Qustodio to block out the web’s nastiest sites, as well as control how much screen time the kiddos get each day. If you’re really concerned about what your kids are doing on the internet, you can even block certain domains at the router level. And if you’re not ready to spend some dough on more heavy software, iOS and Android both offer parental controls to keep kids safe on the go.

Basic security tools are important, too. Lewis suggests installing a firewall and antivirus software on computers, as well as ensuring that you’re up to date on software patches. The safer your computer is, the safer your kids will be. He also says keeping your computer in an open space can help ensure that your kids aren’t heading anywhere they shouldn’t be, and that you’re available for any questions they might have.

You can also turn on some cautionary settings in individual apps. In Snapchat, for example, you can set “Who Can Contact Me” to “My Friends” to block out strangers. In Facebook, lock down their account to control who can see their profile and all of their posts. On Instagram, turn on “Private Account” to keep prying eyes from seeing what your kids are up to.

Can parental controls protect your kids completely? Absolutely not. The nastiness of the internet will always try to find its way onto your kid’s screens. But if you follow Lewis’s advice, hopefully you’ll get a little closer to parental zen.

Bitcoin dips below $11,000 after setting another record high

LONDON (Reuters) – Bitcoin dipped back under $11,000 on Monday, coming off a record high just shy of $11,800 it hit on Sunday after a surge from less than $1,000 at the start of the year.

FILE PHOTO: A copy of bitcoin standing on PC motherboard is seen in this illustration picture, October 26, 2017. REUTERS/Dado Ruvic/File Photo

The cryptocurrency, which trades 24 hours a day and seven days a week, climbed as high as $11,799.99 on the Luxembourg-based Bitstamp exchange at around 2100 GMT on Sunday.

It was not clear what caused the move higher over the weekend other than new investors joining the upstart market, with so-called wallet-providers reporting record numbers of sign-ups over the past week.

Analysts said Friday’s announcement by the main U.S. derivatives regulator that it would allow CME Group Inc and CBOE Global Markets to list bitcoin futures contracts had turned sentiment positive after a choppy week.

“The price rises are triggered by continued media interest driven by the expectation of futures trading on CME,” Charles Hayter, founder of data analysis website Cryptocompare, said.

By 1310 GMT on Monday, bitcoin had slipped back to around $10,919, down 2 percent on the day but still up more than 100 percent over the past three weeks. Sunday’s high marked a 1,121 percent increase since the start of the year.

Think Markets analyst Naeem Aslam said reports Britain wants to increase regulation of bitcoin and other digital currencies by expanding the reach of European Union anti-money-laundering rules that force traders to disclose their identities and report suspicious activity, had knocked bitcoin off its highs.

But others said greater regulatory scrutiny would help.

“If anything, regulation will only increase bitcoin’s rate of growth as regulation lends credibility and engenders trust,” Nicholas Gregory, CEO of London-based cryptocurrency firm CommerceBlock, said.

Sunday’s record high for bitcoin came as Venezuelan President Nicolas Maduro announced the launch of the “petro”, which he said would be a cryptocurrency backed by oil reserves, to shore up a collapsed economy.

Opposition leaders said the digital currency would need congressional approval and some cast doubt on whether it would ever see the light of day in the midst of turmoil.

Reporting by Jemima Kelly; editing by Alexander Smith

Our Standards:The Thomson Reuters Trust Principles.

The Top 5 REITs For 2018

By Bob Ciura

Investors typically buy Real Estate Investment Trusts, or REITs, for dividend income. There is good reason for this. Interest rates remain low, which has suppressed bond yields, and the average dividend yield in the S&P 500 Index is a paltry 2%.

High investment income is hard to come by nowadays, which makes REITs relatively attractive. Many of the 171 dividend-paying REITs we track offer high yields of 5%+. You can see all 171 REITs here.

As 2017 nears its end, it is a good time for income investors to assess dividend investing opportunities for 2018. There are many high-quality REITs that offer a blend of high dividend yields, growth potential, and strong balance sheets.

This article will discuss the top 5 REITs for 2018, in no particular order.

Dividend REIT #5: Realty Income (O)

Dividend Yield: 4.6%

Realty Income is one of the highest-quality REITs out there. Since its IPO in 1994, Realty Income has delivered compound annual returns of 16.4%. It has increased its dividend for 80 quarters in a row.

And, Realty Income has an added bonus, which is that it pays its dividend each month, rather than the more typical quarterly schedule. Realty Income has paid 568 consecutive monthly dividends.

This makes Realty Income more attractive for investors who want dividend income each month. Realty Income is one of 41 stocks we have identified, that pays dividends each month. You can see all 41 monthly dividend stocks here.

Source: Third Quarter Investor Presentation, page 45

Realty Income’s portfolio is comprised mostly of retail properties, such as retail outlets, drug stores, movie theaters, and fitness gyms. This could be an area of concern, given the explosive growth of e-commerce, which threatens brick-and-mortar retail. However, Realty Income has mitigated this risk, with a strong tenant portfolio.

Realty Income utilizes triple-net leases, which is an advantageous structure that provides a steady stream of cash flow. Tenants are responsible for taxes, insurance, and maintenance. It has a diverse portfolio, consisting of more than 5,000 properties in 49 U.S. states and Puerto Rico. The tenant base includes many well-known companies with established business models.

Source: Third Quarter Investor Presentation, page 16

Realty Income’s adjusted funds from operation (FFO) rose 5.1% in 2016, thanks to rising rents and occupancy. The company ended last quarter with 98.3% occupancy, and has never had occupancy below 96%. It is off to a strong start to 2017. Over the first three quarters, adjusted FFO increased 15% from the same period last year. Adjusted FFO-per-share increased 7.5% over the first nine months.

Future growth will come from increasing rents at existing properties, as well as acquisitions of new properties. Same-store rents increased 1% over the first three quarters of 2017. In addition, Realty Income expects to complete approximately $1.5 billion in acquisitions in 2017. For 2017, Realty Income expects adjusted FFO-per-share of $3.03 to $3.07, representing growth of 5.2% to 6.6% for the full year.

Realty Income has a strong balance sheet. It has a credit rating of BBB+ from Standard & Poor’s, which is solidly investment-grade. Its debt-to-EBITDA ratio is 5.2, which is in-line with its peer group. It also currently has a fixed charge coverage ratio of 4.7, the highest in the company’s history.

Dividend REIT #4: Kimco Realty (KIM)

Dividend Yield: 6%

Kimco earns a place on the list, because of its high dividend yield of 6%. Its dividend yield is three times that of the average S&P 500 stock. Kimco is one of 402 dividend-paying stocks we have identified with a yield of 5% or more. You can see all 402 stocks with 5%+ yields here.

Like Realty Income, Kimco operates in retail properties, which are under pressure as consumers turn to e-commerce. Kimco owns an interest in more than 500 U.S. shopping centers. However, only a small portion of its tenant base has closed stores so far this year. New store openings have far outweighed store closures among Kimco’s tenants, so far in 2017.

Source: Third Quarter Presentation, page 8

Kimco’s properties are focused in high-density markets, with high household incomes. Traffic remains robust in these areas, and Kimco has a high-quality tenant portfolio. Some of its largest retail tenants are doing very well, such as TJX (TJX) and The Home Depot (HD).

Kimco’s portfolio has average lease term of 10 years. Portfolio occupancy was 95.8% at the end of last quarter, up 70 basis points from the same quarter last year. The fundamentals of Kimco’s market still remain healthy. For example, the company notes demand for retail space outweighs supply. As a result, over the past 10 years, Kimco’s average annual base rent per square foot rose more than 4% each year.

Source: Third Quarter Presentation, page 17

This has helped Kimco’s cash flow hold up well this year. Adjusted FFO-per-share increased 1% over the first three quarters of 2017. Helping to boost FFO were higher occupancy, and property acquisitions. Kimco management anticipates $300 million to $400 million of property acquisitions for 2017, which will help generate growth next year and beyond.

For 2017, management expects adjusted FFO-per-share of $1.51 to $1.52. Adjusted FFO-per-share was $1.50 in 2016, so this year will bring modest growth for Kimco. All things considered, this is a solid performance, given the turbulence in the retail industry right now.

Sustaining strong cash flow allows Kimco to continue raising its dividend. On October 25th, the company hiked its dividend by 3.7%. The new annualized dividend rate of $1.12 per share, represents a payout ratio of 74%, which is manageable.

Kimco is working to improve its balance sheet. It has a net-debt-to-EBITDA near 6.0, which is high for a REIT. However, the company has an investment grade credit rating of BBB+. By 2020, Kimco expects to improve its credit rating to A-, by accelerating debt repayments.

Dividend REIT #3: W.P. Carey (WPC)

Dividend Yield: 5.7%

W.P. Carey invests in commercial real estate. At the end of last quarter, the portfolio consisted of consisted of 890 net lease properties. The average lease term of the portfolio is 9.5 years, and occupancy stands at 99.8%. Properties are located in the U.S. and Europe, with approximately two-thirds of properties in the U.S.

W.P. Carey specializes in sale-leaseback transactions, in which a tenant sells a property to an outside investment firm, which then leases it back to the tenant. W.P. Carey also generates fee income, derived from management of assets.

Source: 2017 Investor Presentation, page 11

Approximately 95% of annual FFO comes from owned real estate, while the other 5% is derived from investment management activities. W.P. Carey’s investment management business ended the third quarter with assets under management of approximately $13.2 billion.

W.P. Carey has a strong portfolio, and also possesses an advantage. It has reduced its exposure to retail, thus shielding it from the retail downturn over the past few years. Less than 20% of W.P. Carey’s investment portfolio is comprised of retail store tenants.

FFO-per-share increased 3% in 2016, to $5.12, due to 2% rent increases. The company is off to a good start to 2017, with 2.6% adjusted FFO-per-share growth through the first three quarters. Going forward, growth will be fueled by continued rate increases, as approximately 99% of its leases have built-in rent increases. In addition, growth will come from new property acquisitions.

2016 was a year of particularly aggressive acquisitions for W.P. Carey. It placed over $500 million in acquisitions in North America, which will help generate growth in 2017 and beyond.

Source: 2017 Investor Presentation, page 16

For 2017, W.P. Carey management expects adjusted FFO-per-share of $5.25 to $5.35. At the midpoint of guidance, the company would grow FFO by 3.5% this year. This is not an overly exciting growth rate, but it should be enough to continue increasing the dividend. W.P. Carey has a habit of raising its dividend by a small amount each quarter. On September 20th, the company raised the dividend to $1.005 per share, a 2% increase from the same quarterly dividend last year.

W.P. Carey pays an annualized dividend of $4.02 per share. Using 2017 guidance, the company will likely have a payout ratio of 76%. This indicates the current dividend is sustainable. W.P. Carey also has solid credit metrics, with a fixed charge coverage ratio of 4.4, and an investment-grade credit rating of BBB.

Dividend REIT #2: Welltower (HCN)

Dividend Yield: 5.2%

Welltower a healthcare REIT. It invests in properties such as senior housing, post-acute communities, and outpatient medical properties. It has a diversified portfolio, with 1,334 properties spread across the U.S., Canada, and the U.K.

The company has restructured its portfolio in recent years. In 2010, 69% of Welltower’s operating profit was derived from private-pay sources. At that time, it had a heavy presence in long-term/post-acute care facilities. Today, it has more than halved its exposure to long-term/post-acute facilities, and now generates 93% of profit from private-pay sources.

The company decided to expand its presence in senior housing, which now accounts for 70% of operating income. Welltower’s strategy is to focus on property investments in densely-populated urban areas, with high barriers to entry.

Source: November 2017 Investor Presentation, page 15

Welltower’s portfolio restructuring has worked well for the company. In 2016, FFO increased 4%, due to higher rents on owned properties, as well as new property additions. It completed $3.0 billion of gross property investments in 2016.

The investment case for healthcare REITs like Welltower is simple. Life expectancies are rising in developed markets like the U.S. and U.K. Welltower expects the 85+ population will double over the next 20 years. Aging populations will result in high demand for healthcare properties. These demographic changes should give Welltower a sustained growth tailwind for many years.

Source: November 2017 Investor Presentation, page 6

In addition to aging demographics, healthcare spending is rising as a percentage of GDP. According to Welltower, per-capita spending in the 85+ age group is expected to exceed $34,000 per year. This is more than double the level of per-capita spending for the 65-84 age group.

The aging population trend is even more pronounced in the U.K., where Welltower has 105 facilities. Over the next 20 years, the company expects the 75+ population in the U.K. will grow at six times the rate of the general population.

Welltower has a secure dividend payout. The company currently pays an annualized dividend of $3.48 per share. This represents a payout ratio of 82% of projected 2017 FFO. Welltower has increased its dividend for over 10 years in a row, which makes it a Dividend Achiever. You can see all 264 Dividend Achievers here.

Importantly, the balance sheet is in good condition. Welltower has a credit rating of BBB+, and an average debt maturity exceeding 7 years. It also has a fixed charge coverage ratio of 3.7, and a manageable debt-to-EBITDA ratio of 5.2.

Dividend REIT #1: Federal Realty Investment Trust (FRT)

Dividend Yield: 3%

Federal Realty primarily owns shopping centers. It also operates in redevelopment of multi-purpose properties including retail, apartments, and condominiums.

At first glance, Federal Realty doesn’t seem to be an attractive dividend stock. It has a 3% dividend yield, which is fairly low for REIT standards. But there is much more to Federal Realty than meets the eye. The company has a lower dividend yield than many other REITs, but it earns a place on the list because of its long history of dividend growth.

Federal Realty has increased its dividend for 50 years in a row. It is a member of the Dividend Aristocrats, which have increased their dividends for 25+ consecutive years. You can see all 51 Dividend Aristocrats here.

Source: Third Quarter Presentation, page 49

This is a unique distinction, as Federal Realty is the only REIT on the Dividend Aristocrats list. Not only is it a Dividend Aristocrat, it is a Dividend King as well. Including Federal Realty, there are just 22 Dividend Kings. You can see all 22 Dividend Kings here.

Over the course of those 50 years, Federal Realty increased its dividend by 7% each year, compounded annually. Federal Realty’s long dividend growth streak is due to its operational strategy. It focuses on densely-populated, affluent communities, with high demand for commercial and residential real estate.

Source: Third Quarter Presentation, page 3

These qualities set it apart from the competition. According to the company, its cash rents are 60% above the industry average. Its strategy has led to strong growth rates in recent years. In 2016, Federal Realty grew its FFO by 12%, to a record of $5.65 per share. Over the first three quarters of 2017, FFO-per-share rose by 5.7%. Occupancy was 94.9% at the end of last quarter, up 60 basis points from the same quarter last year.

One potential risk factor is that Federal Realty has a fairly high amount of debt on its balance sheet, with a debt-to-EBIDTA ratio of 5.8 as of last quarter. However, the company expects to reduce its leverage ratio to 5.2 by the end of 2018.

And, this debt has a relatively low burden on the company’s financial position. Federal Realty’s debt has an average interest rate of 3.94%. And, 99% of debt is fixed-rate, which means the company is not at high risk of a sudden jump in interest expense if rates rise, as variable debt would. Federal Realty has a credit rating of ‘A-‘, which is high for a REIT.

Final Thoughts

REITs are popular investments for dividend income, and good reason. That said, in the search for strong REITs, investors should resist the urge to chase yield. There are many REITs with sky-high yields, but questionable fundamentals.

Instead, investors should favor REITs that offer a blend of dividend yield, growth, and balance sheet strength. The 5 REITs in this article have a mix of these qualities, which makes them attractive dividend stocks for 2018 and beyond.

Federal Realty is the only REIT on the list of Dividend Aristocrats. Find out if its valuation makes it a confirmed buy with our service Undervalued Aristocrats, which provides actionable buy and sell recommendations on some of the most undervalued dividend growth stocks around. Click here to learn more.

Disclosure: I am/we are long HCN.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

India's Infosys names outsider Parekh as chief executive: statement

MUMBAI (Reuters) – Infosys, India’s No.2 IT services company, named Salil S Parekh as chief executive on Saturday, picking an outsider for the job a second time and handing him the twin challenges of reviving growth and making peace between its founders and board.

FILE PHOT: The Infosys logo is seen at the SIBOS banking and financial conference in Toronto, Ontario, Canada October 19, 2017. REUTERS/Chris Helgren

Parekh, who will join from consultancy firm Capgemini where he is currently an executive, has been given a 5-year term effective Jan.2, an Infosys filing to exchanges showed.

U.B. Pravin Rao who was serving as the interim CEO has been re-designated as chief operating officer from Jan. 2, Infosys said.

“After a comprehensive global search effort, we are pleased to appoint Salil as the CEO & MD,” said Kiran Mazumdar-Shaw, chairperson of the nomination & remuneration committee at Infosys.

“He was the top choice from a pool of highly qualified candidates. With his strong track record and extensive experience, we believe, we have the right person to lead Infosys.”

Former CEO Vishal Sikka announced a sudden exit in August after a protracted public spat with the company’s founding executives, led by Narayana Murthy, over strategy and alleged corporate governance lapses.

Sikka, who joined from German software maker SAP SE in 2014, was the first outsider to be appointed CEO of the Bengaluru-headquartered company.

His exit and the prolonged public row led to a reshuffling of the Infosys’ board with Nandan Nilekani, a co-founder and former CEO, returning as non-executive chairman.

Nilekani, credited with four-fold growth in Infosys’ revenue to $2 billion during his tenure as CEO, had said at the time that cultural fit would be an important criteria for the top job, making internal candidates “very strong contenders”.

Reporting by Suvashree Dey Choudhury and Sankalp Phartiyal; editing by Rafael Nam and Jason Neely

Our Standards:The Thomson Reuters Trust Principles.

India's Infosys appoints outsider Parekh as CEO

MUMBAI (Reuters) – Infosys, India’s No.2 IT services company, named Salil S Parekh as chief executive on Saturday, picking an outsider for the job a second time and handing him the twin challenges of reviving growth and making peace between its founders and board.

FILE PHOT: The Infosys logo is seen at the SIBOS banking and financial conference in Toronto, Ontario, Canada October 19, 2017. REUTERS/Chris Helgren

Parekh, who will join from consultancy firm Capgemini where he is currently an executive, has been given a 5-year term effective Jan.2, an Infosys filing to exchanges showed.

U.B. Pravin Rao who was serving as the interim CEO has been re-designated as chief operating officer from Jan. 2, Infosys said.

“After a comprehensive global search effort, we are pleased to appoint Salil as the CEO & MD,” said Kiran Mazumdar-Shaw, chairperson of the nomination & remuneration committee at Infosys.

“He was the top choice from a pool of highly qualified candidates. With his strong track record and extensive experience, we believe, we have the right person to lead Infosys.”

Former CEO Vishal Sikka announced a sudden exit in August after a protracted public spat with the company’s founding executives, led by Narayana Murthy, over strategy and alleged corporate governance lapses.

Sikka, who joined from German software maker SAP SE in 2014, was the first outsider to be appointed CEO of the Bengaluru-headquartered company.

His exit and the prolonged public row led to a reshuffling of the Infosys’ board with Nandan Nilekani, a co-founder and former CEO, returning as non-executive chairman.

Nilekani, credited with four-fold growth in Infosys’ revenue to $2 billion during his tenure as CEO, had said at the time that cultural fit would be an important criteria for the top job, making internal candidates “very strong contenders”.

Reporting by Suvashree Dey Choudhury and Sankalp Phartiyal; editing by Rafael Nam and Jason Neely

Our Standards:The Thomson Reuters Trust Principles.

Here's How Leaders Can Stop Sexual And Verbal Harassment At Work Right Now (It's So Simple)

Adult relationships take work, lots of work. So,you have every right to raise an eyebrow in disbelief when I say stopping harassment is simple.

Stay with me.

It’s about NO MORE JUBLA. (More on JUBLA later)

Let me explain. Actually, let me let JAY Z explain.

In a recent New York Times article, the famed rapper-businessman talked about therapy and getting to know himself from the inside out.

His openness and honesty about being unfaithful in his marriage to Beyonce is a powerful example of a man able to get at observation of his behavior, understand its roots and then transform his actions to a more positive way.

The way OUT of old outdated behavior: Observe, Understand and Transform.

Leaders who use the OUT Technique set the stage for their colleagues and employees, all who look up to them, to also want to get  OUT of old ways of thinking and acting.

In JAY Z’s words “The most important thing I got (from therapy) is that everything is  connected. Every emotion is connected and it comes from somewhere. And just being aware of it. Being aware of it in everyday life puts you at such a … you’re at such an advantage. You know, you realize that if someone’s racist toward you, it ain’t about you. It’s about their upbringing and what happened to them, and how that led them to this point. You know, most bullies bully. It just happens. ‘Oh, you got bullied as a kid so you trying to bully me.” I understand.”

Now about JUBLA. The rapper continues, “And once I understand that, instead of reacting to that with anger, I can provide a softer landing and maybe say “Aw man, is you OK?”

No JUBLA: Judgment, Blame or Attack.

Now, I’m not saying that you forgive without holding people accountable.That’s a big part of the social revolution we are in today around sexual as well as verbal harassment. People are being brought to task for their unwanted actions.

Of course, Harvey Weinstein, Roger Ailes, Matt Lauer, Bill O’Reilly, Kevin Spacey and so many others are having their feet held to the fire.Yet, that, in itself, is simply not enough for us, as a culture, to move to a new gender equal place.

The patterns we all, yes all, grew up with were to judge others, blame them so we could stay safe, and attack so we are seen as better and stronger.

As a society we are really just in elementary school learning about healthy gender relations, looking for the way OUT:

               Observe: How you were treated by the opposite sex when you were growing up. Males, were you the ones who got your way and could trounce on anyone you saw as weak? Females, were you seen as eye candy? Did you stay silent to please even if you were seething inside?

               Understand: When did you shut down emotions around sexuality and equally important around power? Who were you hoping to please by your behavior? How did you learn to trust the opposite sex?

               Transform: Rework the pattern of pleaser into truth teller, persecutor (bully) into visionary, victim into explorer. Take the time to ask questions and plan and then act on new ways of responding.

As we move to a NO JUBLA world, one where it’s no longer acceptable to make fun of others, taunt them with ugly nicknames, grab them without permission and ignore the boundaries of civility, we are on the way to end harassment now.

Join the #NO JUBLA movement. Think before you speak or touch or rage or belittle. And, if you are prone to stay quiet, remember “Those who remain silent are guilty too.”.

As JAY Z said ” Everything is connected.”

It’s about you, it’s about me and it’s about time.