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.
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.
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.
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.
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.
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.
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.
