Capital Markets

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Performance of Retail REITs Mixed as Consumer Preferences Shift

According to NAREIT, regional mall REITs posted total yearly returns of –5.2 percent last year. However, the broader retail REIT sector brought in a 0.95 percent total return for 2016, and 0.5 percent for 2017 year-to-date. Within the sector, freestanding retail REITs significantly outperformed mall REITs and shopping centers last year overall. Plus, interest rate survey data from Trepp.

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Modest Gains for REITs in January

According to the National Association of Real Estate Investment Trusts (NAREIT), the FTSE/NAREIT All REIT Index posted a return of 0.2 percent last month, compared to the Standard & Poor’s 500 index return of 1.9 percent. As for REIT property sectors, timber REITs posted a total return of 3.7 percent, while industrial REITs dropped by 6.5 percent. Plus, interest rate survey data from Trepp.

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Netflix and Total Returns: Data Center REITs Benefit from Media Consumption

Data center real estate investment trusts (REITs) have been the best-performing sector over the past two years, posting total returns of 28.36 percent in 2015 and 26.41 percent in 2016. Once considered a fringe sector, data centers have charged onto the center stage as internet use and data consumption have skyrocketed. But data centers are also proving to be one of the sectors most sensitive to interest rates: returns stumbled late in 2016 before making a recovery in December. Plus, interest rate survey data from Trepp.

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Can Hotel REITs Capitalize on a Banner 2016?

Capitalizing on a strong fourth quarter, hotel real estate investment trusts posted a healthy 25 percent total return for the year. However, hotel consulting firm STR is expecting 2.8 percent RevPAR growth this year, which would be the lowest since 2009. Plus, interest rate survey data from Trepp.

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Recent Articles

  • Can Apartment REITs Turn It Around in 2017?

    January 17, 2017

    Supply is the name of the game with the apartment sector, which uncharacteristically underperformed through 2016. The sector, which has been a perennial leader in recent years, posted a flat 2.86 percent total return for the year, a stark contrast with its more than 50 percent rise during 2014 and 2015. Plus, interest rate survey data from Trepp.

  • 2016 in Review: REITs Start Strong but Slow Down

    January 9, 2017

    In a volatile year, the FTSE/NAREIT All REIT Index posted a modest total return of 9.3 percent in 2016, while the S&P 500 saw a total return of 12 percent. Real estate investment trusts (REITs) enjoyed a pleasant opening to the year, followed by a skittish second half as interest rate concerns applied downward pressure.

  • ULI/McCoy Symposium on Real Estate Finance: Facing Uncertainty

    January 3, 2017

    ULI life trustee Bowen H. “Buzz” McCoy shared with Urban Land some key findings and insights from the ULI/McCoy Symposium on Real Estate Finance.

  • Opportunities in the Year Ahead for China

    December 21, 2016

    Though next year could be a tough one for investors in Chinese real estate, the country’s economy is also more entwined with that of the rest of the world than ever before, speakers said at the 2016 ULI China Mainland Winter Meeting in Shanghai.

  • Industrial REITs on the Nice List, Continue Strong Performance

    December 19, 2016

    Industrial real estate investment trusts recently hit their second-highest year-to-date return for 2016 at 24.98 percent. While industry professionals have raised concerns that supply and demand issues may plague the next 12 to 24 months, the industrial sector has been noticeably active as it has posted high aggregate occupancy and low delinquency rates. Plus, interest rate survey data from Trepp.

  • Treasury Yields Weigh on REIT Returns in November

    December 12, 2016

    As the year winds down, returns on real estate investments trusts have continued to slump as gains in interest rates put downward pressure on the sector. According to the National Association of Real Estate Investment Trusts (NAREIT), the total returns for the FTSE/NAREIT All REIT Index dropped 2 percent in November while the Standard & Poor’s 500 gained 3.7 percent. Plus, interest rate survey data from Trepp.

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