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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
