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.
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.
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.
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.
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.
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.
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.
