Author: Susan Persin

Senior director of research at Trepp.

Articles by Susan Persin

  • What Does the Upcoming Election Mean for CRE and REITs?
    Published on October 17, 2016 in Capital Markets
    Will real estate fundamentals strengthen further or weaken after a new administration takes office in January?
  • REIT’s Struggle Continues in September
    Published on October 10, 2016 in Capital Markets
    Real estate investment trusts posted a second consecutive month of negative total returns, causing investor concern about interest rates and underlying valuations. Plus, interest rate survey data from Trepp.
  • India’s First REIT Slated for IPO
    Published on October 03, 2016 in Capital Markets
    More than 55 years after the REIT Act title was signed into law as part of the Cigar Excise Tax Extension of 1960, India’s first real estate investment trust (REIT) is slated for an initial public offering, though it is unlikely to list until early 2017. Plus, interest rate survey data from Trepp.
  • REIT IPOs: Time for a Comeback?
    Published on September 26, 2016 in Capital Markets
    Ongoing uncertainty about the timing of a Federal Reserve interest rate hike and its impact on REITs has kept potential IPOs on the sidelines. In addition, the Internal Revenue Service issued regulations in June that clamped down on tax-free REIT spin-offs that were a significant source of growth for specialty REITs. Plus, interest rate survey data from Trepp.
  • U.S. Retail Sector Already Gearing Up for Holiday Season
    Published on September 19, 2016 in Capital Markets
    Brick-and-mortar stores will benefit from holiday spending, but robust growth is not expected at those outlets. Instead, warehouses and call centers will be bigger beneficiaries of holiday spending this year, with the recent RetailNext forecast calling for a 14.9 percent growth in online sales. Plus, interest rate survey data from Trepp.
  • Which U.S. Commercial Real Estate Sectors Might Be Nearing Oversupply?
    Published on September 12, 2016 in Capital Markets
    Construction during the current real estate cycle has generally stayed below historical trends, but deliveries have increased as the cycle matures. For example, real estate investment trusts like Avalon Bay and Equity Residential with significant investments in apartment markets like Manhattan and San Francisco have already cut their revenue forecasts several times this year. Plus, interest rate survey data from Trepp.
  • With Potential Rate Hike Looming, REITs Pull Back in August
    Published on September 06, 2016 in Capital Markets
    Encouraging economic news released in August heightened the potential that the Fed will increase interest rates. But this good news proved to be a bit too positive, as it may have contributed to a withdrawal in the real estate investment trust sector. Plus, interest rate survey data from Trepp.
  • Could U.S. Bureau of Prisons Ruling Further Affect Private Prison REITs?
    Published on August 29, 2016 in Capital Markets
    Prison real estate investment trusts have been volatile during recent weeks in the aftermath of the Bureau of Prisons’ announcement that it would not extend or renew its contracts with private prisons. Declining prison populations also factored into the decision. Plus, interest rate survey data from Trepp.
  • Which REITs Could Benefit from Back-to-School Shopping?
    Published on August 22, 2016 in Capital Markets
    Back-to-school is the second biggest shopping season for U.S. retailers. But shoppers are favoring discounters more, including off-price chains, dollar stores, and lines like Macy's Backstage and Nordstrom Rack. Plus, interest rate survey data from Trepp.
  • Is It Trouble or Opportunity at the Mall?
    Published on August 15, 2016 in Capital Markets
    Macy’s has announced plans to close 100 of its 675 traditional full-price locations and to increase investment in its online channel, which heightened concern about bricks-and-mortar retail versus e-commerce and led regional mall REITs lower. Plus, interest rate survey data from Trepp.
  • U.S. REITs Attractive in a Post-Brexit World
    Published on August 08, 2016 in Capital Markets
    Thanks to strong market fundamentals, positive second-quarter earnings reports, and post-Brexit assurances of ongoing low interest rates, real estate investment trusts (REITs) pushed forward in July with a 3.87 percent total return, with the lodging segment posted the strongest total returns for July at 10.23 percent. Plus, interest rate survey data from Trepp.
  • Early Earnings News for REITs Mostly Positive
    Published on August 01, 2016 in Capital Markets
    Midyear earnings season is getting underway, and news from large real estate investment trusts has been mostly positive, but mixed. REITs have benefited from strong underlying real estate market fundamentals and ongoing low interest rates, although new supply is becoming a concern for some product types in selected markets. Plus, interest rate survey data from Trepp.
  • Brexit Helps Boost U.S. Office REIT Performance in July
    Published on July 25, 2016 in Capital Markets
    The June Brexit referendum is lending momentum to the office REIT sector. Brexit will keep U.S. interest rates very low for longer, making REIT yields more attractive and providing inexpensive capital for expansion. Plus, interest rate survey data from Trepp.
  • From the Slots to the Stables: Specialty REITs Outperforming
    Published on July 18, 2016 in Capital Markets
    What do billboards, prisons, casinos, schools, farmland, and document storage have in common? Real estate investment trusts (REITs) in these disparate businesses comprise NAREIT’s specialty REIT category, one of the best-performing sectors this year. Plus, interest rate survey data from Trepp.
  • Freestanding Retail REITs Bring Stable Returns in Uncertain Times
    Published on July 11, 2016 in Capital Markets
    Strong returns and limited risk have been key factors in the success of freestanding retail REITs during 2016, with a 37.29 percent total return year to date. But as these REITs reach 52-week highs, is it time to buy, hold, or sell? Plus, interest rate survey data from Trepp.
  • REITs Outperforming Broader Markets in 2016
    Published on July 05, 2016 in Capital Markets
    The total FTSE NAREIT All REIT Index return gained 6.68 percent in June, bringing the total return for the first half of 2016 to 13.65 percent. Freestanding retail, single-family home, data center, manufactured home, and infrastructure REITs posted double-digit gains during the month while timber lagged. Plus, interest rate survey data from Trepp.
  • Interest Rates, REITs, and Brexit
    Published on June 20, 2016 in Capital Markets
    Even as the broader equity markets fell, real estate investment trusts posted positive returns as economic uncertainty once again took center stage. The Federal Reserve Board’s decision not to raise interest rates this month was good news for REITs in terms of keeping their cost of capital low, but also reflected some weak economic news that could mean economic growth is faltering. Plus, interest rate survey data from Trepp.
  • REITs Are Selling or Building, but Not Buying
    Published on June 13, 2016 in Capital Markets
    The current real estate cycle is maturing after more than seven years of expansion. Real estate investment trusts in all sectors are responding to market conditions by selling more properties than they are buying and by recycling capital to fund new development and redevelopment. Plus, interest rate survey data from Trepp.
  • Performance and Broader Economy Boost REITs in May
    Published on June 10, 2016 in Capital Markets
    Real estate fundamentals and real estate investment trust performance benefited from positive economic news during May. Retail sales experienced their biggest increase in a year with a 1.3 percent jump during April, according to the U.S. Department of Commerce, and the pace of both new-home sales and home resales accelerated during April. The positive news was tempered by a worse-than-expected April jobs report as the brisk hiring of the first quarter slowed.
  • Will Summer Travel Boost Lodging REITs?
    Published on May 31, 2016 in Capital Markets
    Memorial Day unofficially kicks off the busy summer travel season, and this summer is shaping up to be the busiest travel season in years. Despite the bright outlook for summer travel, almost five months into the year, year-to-date lodging sector real estate investment trust (REIT) returns measured –2.93 percent. Plus, interest rate survey data from Trepp.
  • Could New Supply of Apartments Slow Rising Rents?
    Published on May 23, 2016 in Capital Markets
    Landlords are confident that apartments are not overbuilt, and rents continue to increase in many markets, but real estate investment trust investors are less certain. This year, deliveries are reaching new peaks, and investor worries about a market softening are reflected in the sector’s –1.12 percent year-to-date total return. Plus, interest rate survey data from Trepp.
  • Health Care REITs Outperform Despite a Murky Horizon
    Published on May 16, 2016 in Capital Markets
    Implementation of the Affordable Care Act has driven both health care–related job growth and demand for real estate in the United States. But health care REITs are not immune from external market challenges, and they have thrived in the current low interest rate environment. Plus, interest rate survey data from Trepp.
  • REITs Adapt to Changing Market in April
    Published on May 09, 2016 in Capital Markets
    Real estate investment trusts pulled back in April amid mixed news on interest rates and first-quarter earnings. REIT merger and acquisition activity is on the upswing, and the first REIT initial public offering of the year also occurred, as MGM Growth Properties raised $1.05 billion. Plus, interest rate survey data from Trepp.
  • Data Centers Are a Leading REIT Sector in 2016
    Published on April 18, 2016 in Capital Markets
    Six data center real estate investment trusts are posting outsized returns this year. The sector has a market cap of $45.6 billion and year-to-date returns have totaled 13.06 percent, including a 3.01 percent dividend yield. Growth in data use and cloud computing is the driving force behind the sector’s expansion. Plus, interest rate survey data from Trepp.
  • REITs Rebound in March
    Published on April 04, 2016 in Capital Markets
    The performance of real estate investment trusts (REITs) outpaced the broader markets during March and ended the first quarter with a 5.86 percent total return. The U.S. economy appears to be maintaining its growth trajectory in spite of global economic uncertainty and weakness in oil markets. Plus, interest rate survey data from Trepp.
  • Tourism Trends and the Impact on U.S. Hotels
    Published on March 28, 2016 in Capital Markets
    Lodging real estate investment trusts (REITs) had been coming back after a tough 2015, but travel-related stocks sank in the aftermath of the attacks in Belgium, especially for companies with an international presence. U.S. lodging sector fundamentals have been strong, creating concern about the extent to which further growth can be supported. Plus, interest rate survey data from Trepp.
  • Will International Investment in U.S. Real Estate Continue?
    Published on March 21, 2016 in Capital Markets
    The recent $12.8 billion bid by Anbang Insurance for Starwood Hotels and Resorts, even if it proves to be unsuccessful, highlights the ongoing flow of international capital into the U.S. real estate market. Changes adopted in late 2015 to the Foreign Investment in Real Property Tax Act (FIRPTA) are expected to bring additional overseas money to the United States, with foreign pension funds now exempted from FIRPTA tax and withholding. Plus, interest rate survey data from Trepp.
  • Growth in E-Commerce Continues to Drive Industrial Markets
    Published on March 14, 2016 in Capital Markets
    In its sixth-consecutive year of double-digit growth, U.S. e-commerce saw sales grow 14.6 percent to $341.7 billion during 2015, according to the U.S. Commerce Department, illustrating the growing importance of e-commerce behind new demand for warehouses. Plus, interest rate survey data from Trepp.
  • February REIT Performance: Is the Sector Plateauing?
    Published on March 07, 2016 in Capital Markets
    Real estate investment trusts experienced some ups and downs during February and ended the month with relatively flat performance. Positive performance by mortgage REITs largely offset the decline in the equity REIT sector. Current REIT performance reflects broader market behavior but could also signal that markets may be plateauing. Plus, interest rate survey data from Trepp.
  • The Effect of the U.S. Housing Market on REITs
    Published on February 29, 2016 in Capital Markets
    U.S. housing market conditions have affected both timber and single-family-home real estate investment trusts (REITs). Limited new residential construction, the strong dollar, and concerns about China's economy have taken a toll on timber REITs, while returns for single-family-home REITs are down 15.06 percent, marking the weakest performance of any sector this year. Plus, interest rate survey data from Trepp.
  • Best-Performing REIT Sectors for 2016
    Published on February 22, 2016 in Capital Markets
    The FTSE NAREIT All Equity REIT average made healthy gains last week, and total annual returns currently outpace the NASDAQ and Russell 200 Index. But the freestanding, net lease retail REIT sector is the only sector with positive returns this year. Five other REIT sectors stand out for year-to-date total returns that are only slightly negative. Plus, interest rate survey data from Trepp.
  • Freestanding Retail REITs Defying Broader Market Downturn
    Published on February 16, 2016 in Capital Markets
    As the broader stock market has tumbled further, the freestanding retail real estate investment trust (REIT) sector stayed in positive territory for the year. In contrast to the rest of the REIT industry, total REIT returns for this sector are up more than 10 percent so far in 2016. Also known as triple-net-lease REITs, this is one of the smaller REIT sectors by market cap. Plus, interest rate survey data from Trepp.
  • Office Sublease Space Grows in Tech and Energy Markets
    Published on February 08, 2016 in Capital Markets
    Last week, Yahoo became the most recent large tech company to announce layoffs and office closures as it explores alternatives for its web business. Moves like this highlight the growing issue of sublease space among tech and energy companies, whose expansion drove demand for office space in recent years. Are new availabilities relieving tight conditions or a sign of something more severe? Plus, interest rate survey data from Trepp.
  • Are Apartment REITs Headed Toward a Cliff in 2016?
    Published on February 01, 2016 in Capital Markets
    Apartments had a very strong year in 2015, with rent growth averaging 4.8 percent and occupancy averaging 95.8 percent according to MPF Research, a division of Real Page. But apartment market activity slowed late in the year, and opinions are mixed about whether it was seasonal slowing or a sign that markets are cooling. Plus, interest rate survey data from Trepp.
  • Economic Issues, Consumerism, and E-commerce Dictate Retail Outlook for 2016
    Published on January 25, 2016 in Capital Markets
    Stock market volatility is raising questions about the strength of U.S. commercial real estate markets. Retail availability stood at 8 percent in the third quarter of 2015, according to CBRE—100 basis points above the low reached in 2006. Market fundamentals have been strong, but will negative headwinds change the outlook for the retail sector this year? Plus, interest rate survey data from Trepp.
  • Which REIT Sectors Will Stand Out in 2016?
    Published on January 19, 2016 in Capital Markets
    Investors have flocked to the real estate investment trust sector in recent years for its attractive returns in the current low-interest-rate environment. Equity REIT yields measured 3.85 percent at the end of 2015 while mortgage REIT dividend yields stood even higher, at 12.15 percent, according to the National Association of Real Estate Investment Trusts. Plus, interest rate survey data from Trepp.
  • REIT Trends to Watch in 2016
    Published on January 11, 2016 in Capital Markets
    Underlying real estate property fundamentals are healthy and asset valuations are high. However, interest rates are moving higher and a market misalignment has been created where many real estate investment trusts are trading below net asset value. Tax, policy, and legislative changes also are helping set the stage for REIT activity this year. Plus, interest rate survey data from Trepp.
  • Interest Rates, Mergers, and Privatization Dominate REIT Headlines for 2015
    Published on January 04, 2016 in Capital Markets
    Real estate investment trusts (REITs) ended the year with a total return of 3.13 percent. Healthy demand for all types of space led to higher revenues and improved REIT profitability; rising property values created an attractive environment for sales. But high property valuations also made acquisitions difficult and left many REITs considering alternatives for expansion. Plus, interest rate survey data from Trepp.
  • REIT Winners and Losers after the Fed’s Rate Hike
    Published on December 21, 2015 in Capital Markets
    Last week, the Federal Reserve raised its target funds interest rate by 25 basis points to 0.50 percent—the first increase since 2006. Residential mortgage REITs gained 3.37 percent Wednesday on the belief that higher interest rates will benefit the sector, and the manufactured-homes sector also posted strong gains.
  • Few Clouds on the Horizon for REITs in Hawaii
    Published on December 14, 2015 in Capital Markets
    A healthy outlook for the Hawaiian economy and real estate market has attracted investors to the state, including many real estate investment trusts (REITs). Few clouds are on the horizon, but the market should be closely watched because external shocks, ranging from weather events to terrorist attacks, can cause it to turn quickly. Plus, interest rate survey results from Trepp.
  • REITs Shift Slightly in November Amid News of Coming Rate Hike
    Published on December 07, 2015 in Capital Markets
    Returns on real estate investment trusts (REITs) turned slightly negative in November following a strong performance in October. The FTSE NAREIT All Equity REIT average declined by 0.17 percent, and total year-to-date REIT returns at the end of November measured 1.50 percent. Plus, interest rate survey results from Trepp.
  • Industry Outlook for 2016 from REIT World
    Published on November 23, 2015 in Capital Markets
    At the recent REIT World Conference in Las Vegas, industry experts said they are looking forward to 2016, when REITs will be separated from financial services and elevated into a new Global Industry Classification Standard (GICS) sector. Self-storage and apartments are attractive due to favorable demographic trends. Plus, interest rate survey results from Trepp.
  • Why Have Health Care REITs Been Battered This Year?
    Published on November 16, 2015 in Capital Markets
    Health care has been one of the worst-performing sectors for real estate investment trusts this year, with a total year-to-date return of –17.60 percent. This performance has been surprising, since the sector has been a model for growth in prior years. So what has pulled the sector down during 2015? Plus, interest rate survey results from Trepp.
  • REITs Get Treats, Not Tricks, in October
    Published on November 09, 2015 in Capital Markets
    U.S. markets rebounded in October, posting their best monthly performance in four years. Real estate investment trusts also posted strong returns that offset losses from earlier in the year, with the FTSE NAREIT All Equity REIT average gaining 6.47 percent. Plus, interest rate survey results from Trepp.
  • Are Lodging REITs Priced to Buy?
    Published on November 02, 2015 in Capital Markets
    It has been reported by the Wall Street Journal and others that Hyatt is in talks to buy hotel operator Starwood Hotels and Resorts Worldwide. While neither company is a real estate investment trust, the potential transaction is emblematic of what is happening in the sector, where hotel REITs that are trading below the value of their underlying assets are creating an opportunity for mergers, acquisitions, and buybacks. Plus, interest rate survey results from Trepp.
  • REITs Hop in the DeLorean, Go Back to the Future
    Published on October 26, 2015 in Capital Markets
    Despite healthy real estate market conditions, investors are pricing an anticipated market slowdown into REIT share values. This situation generally occurs late in the real estate cycle and is spurring REIT privatizations and share buybacks. Plus, interest rate survey results from Trepp.
  • Optimizing Real Estate Space Use through Technology
    Published on October 19, 2015 in Capital Markets
    Most industries are embracing technology, which is getting better, faster, and more affordable and is profoundly affecting all types of real estate. In the real estate industry itself, one way that technology is being used is to more fully utilize properties, which in turn can enhance property values. Plus, interest rate survey results from Trepp.
  • Papal Visit Drives Lodging Demand for Recovering New York City Market
    Published on September 28, 2015 in Capital Markets
    With the United Nations General Assembly, Pope Francis, and President Obama converging on New York City, booking a hotel room there has become next to impossible. Room prices have spiked—at least temporarily—throughout much of the city. Yet, it is at odds with a real estate investment trust (REIT) sector where total returns are down 16.41 percent year-to-date in 2015. Plus, interest rate survey results from Trepp.
  • Federal Reserve Delays Interest Rate Hike
    Published on September 21, 2015 in Capital Markets
    Last week, the U.S. Federal Open Market Committee opted to not raise its benchmark interest rate, which has been near zero since late 2008. The lack of an interest rate increase was positive news for real estate and real estate investment trusts, which gained 1.10 percent for the day. Plus, interest rate survey results from Trepp.
  • Retailers Broaden Product Offerings to Attract Shoppers
    Published on September 14, 2015 in Capital Markets
    Macy’s and Best Buy have announced plans to open 300-square-foot (28 sq m) consumer electronics departments in ten Macy’s stores in early November. The announcement seems innocuous, since the store-within-a-store concept is not new, but it is important to these retailers, both of which have struggled as consumers increasingly shop online and at discount retailers.
  • REITs Stumble along with Broader Markets in August
    Published on September 08, 2015 in Capital Markets
    As of August 18, the FTSE NAREIT All Equity REIT average monthly total return was up 2.38 percent; but by month’s end, it had lost its gains and more. The FTSE NAREIT All Equity REIT average declined 5.82 percent during August. Plus, interest rate survey data from Trepp.
  • REITs Down on China-Related Concerns
    Published on August 31, 2015 in Capital Markets
    U.S. stock markets turned dramatically lower during much of the past week, but markets ended the six-day downturn by surging ahead on Wednesday and posting additional gains on Thursday. Positive economic news on U.S. second-quarter gross domestic product, consumer confidence, and home sales indicated that the domestic economy should be able to withstand the slowdown in China. Plus, interest rate survey data from Trepp.
  • Outdoor Advertising Industry Growing Despite Challenges
    Published on August 24, 2015 in Capital Markets
    Two of the four major outdoor advertising companies converted to real estate investment trusts in 2014, prompting a look at outdoor advertising trends and REIT performance. The movement toward highly flexible digital billboards is driving outdoor advertising revenue growth. Plus, interest rate survey results from Trepp.
  • REITs Go to Prison
    Published on August 17, 2015 in Capital Markets
    Like all REITs, prison REITs have been beaten down this year by the prospect of higher interest rates, but they have been further affected by discussion of prison reform and new government regulations. Plus, interest rate survey results from Trepp.
  • REITs’ Current Dichotomy: Earnings versus Interest Rates
    Published on August 10, 2015 in Capital Markets
    Real estate investment trusts rallied during July, recovering from a weak first half of 2015. Despite reporting mostly strong second-quarter earnings, concerns about higher interest rates continue to weigh on the sector. Plus, interest rate survey results from Trepp.
  • Casino Companies Separate Real Estate and Gambling Operations
    Published on August 03, 2015 in Capital Markets
    Many gambling stocks are losing value and weighed down by debt, with limited options for new financing. To date, one gaming company has formed a REIT that is growing through acquisitions, and several others are considering similar moves to unlock value and boost their stock prices. Plus, interest rate survey results from Trepp.
  • Manufactured Housing Leads 2015 REIT Sector Performance
    Published on July 27, 2015 in Capital Markets
    Aging baby boomers and strong demand for inexpensive housing have helped boost the small manufactured housing real estate investment trust (REIT) sector. The sector’s market capitalization totals just $8 billion, but its total year-to-date return of 13.13 percent far exceeds the FTSE NAREIT All Equity REIT average of –1.07 percent. Plus, interest rate survey results from Trepp.
  • U.S. Retail Environment Weighs on REITs
    Published on July 20, 2015 in Capital Markets
    Mixed economic news is weighing on retail markets, pushing real estate investment trust (REIT) performance down. Within the retail REIT sector, regional malls, prized for stability as a core property type, have posted the best year to date returns (–1.92 percent), while shopping centers posted a return of –2.94 percent. Plus, interest rate survey results from Trepp.
  • U.S. REITs Feeling Effects from Turmoil in Greece and China
    Published on July 13, 2015 in Capital Markets
    International economic forces have taken center stage this week, affecting both U.S. stock markets and real estate investment trusts. The crash in the Chinese stock market and ongoing concerns about the future of Greece in the Eurozone drove markets down during the first half of the week, with REITs faring better than the overall market. Plus, interest rate survey results from Trepp.
  • What Does Increased Construction Mean for Apartment REITs?
    Published on June 22, 2015 in Capital Markets
    Is increased construction good or bad for apartment real estate investment trusts (REITs)? This question took center stage last week with the release of May data on multifamily completions and permit activity by the U.S. Census Bureau and the U.S. Department of Housing and Urban Development. Plus, interest rate survey results from Trepp.
  • Focusing on Fundamentals at REITWeek
    Published on June 15, 2015 in Capital Markets
    While many of the larger real estate investment trusts made presentations at the 2015 REITWeek Conference in New York, specialized trusts took center stage during a panel focused on how healthy real estate property fundamentals are benefiting the data center, cell tower, timber, advertising, and farmland sectors. Plus, interest rate survey results from Trepp.
  • REIT Returns Decrease Slightly in May
    Published on June 08, 2015 in Capital Markets
    Real estate investment trusts (REITs) pulled back slightly in May as their outlook became less certain. Strong April job growth has helped fuel demand for real estate, but consumer spending has picked up less than expected given the decrease in fuel prices. Investors are also wary of an interest rate increase. Plus, interest rate survey results from Trepp.
  • Student Housing REITs: Making the Grade?
    Published on June 01, 2015 in Capital Markets
    As schools let out for the summer, student housing real estate investment trusts (REITs) are already looking past vacations and ahead to the next school year. As an influx of new construction was met with declining college enrollment this year, these REITs faced challenges.
  • As Housing Markets Advance, What Is Next for Single-Family Residential REITs?
    Published on May 26, 2015 in Capital Markets
    Several years into a growth economy, most housing markets are moving forward. The four publicly traded real estate investment trusts (REITs) that were formed to acquire and rent distressed single-family homes are currently reporting short-term successes, with improved earnings and property values. However, each of the single-family residential REITs reported a net loss for the first quarter of the year.
  • E-Commerce Driving Demand for Industrial Space
    Published on May 18, 2015 in Capital Markets
    Strong growth in e-commerce is driving demand for industrial space. Real estate investment trusts like Prologis, whose $20.5 billion market cap represents 66 percent of the industrial REIT sector, are at the forefront of these changes. Plus, interest rate survey results from Trepp.
  • Is India the Next Emerging Market for REITs?
    Published on May 11, 2015 in Capital Markets
    The real estate investment trust market in India took an important step forward when Finance Minister Arun Jaitley stated that India's minimum alternative tax will apply to REITs only when an actual transfer of units occurs. The lack of clarity on whether REITs are subject to MAT, as well as to a dividend distribution tax, are two of the factors that have prevented formation. Plus, interest rate survey results from Trepp.
  • REIT Performance Slips in April
    Published on May 04, 2015 in Capital Markets
    Real estate investment trusts pulled back in April, with a –4.95 percent total return for the month. Interest rates edged up during the month and signs of economic weakness also affected REITs and the broader markets with first-quarter GDP growth slowing to just 0.2 percent. Plus, interest rate survey results from Trepp.
  • Demand from Tech Tenants Continues to Propel Office Markets
    Published on April 27, 2015 in Capital Markets
    Strong demand from technology, advertising, media, and information tenants, combined with limited new office supply, has allowed for healthy rent growth. The office sector’s 2.89 percent dividend yield is below average for equity REITs, but in the current low-interest-rate environment, it is attractive compared with other investment options. Plus, interest rate survey results from Trepp.
  • Lodging REITs: Time to Buy or Sell?
    Published on April 20, 2015 in Capital Markets
    For the first time in almost a year, weekly U.S. revenue per available room declined as of April 4. But, an improving U.S. economy and low gas prices have boosted demand while new supply has stayed low in most markets, keeping lodging market fundamentals strong. Plus, interest rate survey results from Trepp.
  • Do REITs Need Water to Grow?
    Published on April 13, 2015 in Capital Markets
    With no sign of a break in California’s four-year drought, Governor Jerry Brown on April 1 ordered a statewide reduction in water use. What does the worsening drought mean for the state’s economy, real estate, and REITs? Plus, interest rate survey results from Trepp.
  • REITs Volatile amid Spinoff and Interest Rate Talk
    Published on April 06, 2015 in Capital Markets
    Real estate investment trusts were volatile in March. By month-end, the FTSE NAREIT All REIT Index had slightly underperformed the broader markets with a gain of 1.15 percent. Meanwhile, more companies are being urged to spin-off their real estate assets into REITs. Plus, interest rate survey results from Trepp.
  • Biotech Industry Drives Life Science REITs
    Published on March 30, 2015 in Capital Markets
    Fueled by strong expansion among life science companies, the two major pure-play life science real estate investment trusts (REITs) are expanding their portfolios through both acquisitions and new development, with earnings that reflect the benefits of this growth. Plus, interest rate survey results from Trepp.
  • Slow Housing Construction Activity and Exports Pull Down Timber REITs
    Published on March 23, 2015 in Capital Markets
    News of plunging February housing starts in the United States prompts a look at timber real estate investment trusts (REITs). Timber REIT performance is closely tied to timber production and prices, as well as to construction and exports. Plus, interest rate survey results from Trepp.
  • Hostile Takeover Activity Growing for REITs
    Published on March 13, 2015 in Capital Markets
    Hostile takeovers are unusual among real estate investment trusts (REITs), so two large recently announced deals are drawing significant attention.