Proper Balance Sheets: REIT Sectors Focused on Low Leverage with Fixed Rate and Unsecured Debt
During this period of divergent public and private property valuations, the commercial real estate mortgage market has been marked by higher interest rates and stricter underwriting standards.
Office and Apartment Sectors Magnify Cap Rate Disparities
A recent Nareit market commentary highlighted that the “ostrich effect,” an investor behavior where risky situations are avoided by pretending that they do not exist, may aptly describe the attitudes of many private institutional real estate investment managers and appraisers when it comes to their valuation practices.
Norges Bank Investment Management: Public and Private Real Estate All the Same in the Long Run
Norges Bank Investment Management (NBIM) recently published a discussion note, “Drivers of Listed and Unlisted Real Estate Returns,” which analyzes the drivers of U.S. public and private real estate returns and evaluates real estate exposures in the context of a diversified investment portfolio.
Climbing Treasury Yields Pressured REITs and Broad Markets in August
REITs and broad market equities faced challenges in August, as the sharply rising 10-year Treasury yield hit 4.34%, its highest level since 2007, and then declined to 4.09% in the final week of the month.
Real Estate Cap Rates, Appraisals, and the Ostrich Effect
A common myth tells us that ostriches bury their heads in the sand when faced with danger. While not true, the phrase “burying your head in the sand” has become a popular idiom to describe an individual who ignores the existence of a problem with the hope that it will just go away.
REITs Underweighted in ESG Funds
The Morningstar Sustainable Funds Landscape Report shows that the number of sustainable open-end and exchange-traded funds available to U.S. investors rose to nearly 600 in 2022.
Reading the Real Estate Market: Tracking Active Managers’ Allocations Over Time
Nareit is tracking quarterly investment holdings for the 28 largest actively managed real estate investment funds focusing on REIT investment.
REITs: A Port in the Capital Market Storm
The rapid rise in interest rates since the beginning of 2022 has exposed fault lines in banking, private equity, and commercial real estate business models that were predicated on low debt rates.
REITWatch is a monthly statistical publication intended to provide a snapshot of the REIT industry. It includes data derived from the FTSE Nareit U.S. Real Estate Index Series and the FTSE/EPRA Nareit Global Real Estate Index Series in addition to tracking the performance of individual REITs.
2023 REIT Outlook: REITs, Recessions, and Economic Uncertainty
With strong operational performance and balance sheets, REITs are well-positioned to navigate economic and market uncertainty in 2023.
REITs 2023: Maintaining Solid Footing Amid Economic Uncertainty
Our analysis of CRE and REITs notes that REITs had impressive operational results with record high earnings during 2022, despite their lower stock market valuations.
Estimating the Size of the Commercial Real Estate Market in the U.S.
The estimated total dollar value of commercial real estate was $20.7 trillion as of 2021:Q2.
Tower REITs, Real Estate Housing the Digital Economy
A new study finds tower REITs are real estate housing the digital economy.
REITs: 2021 in Review and What's Ahead for 2022
Despite the challenges of COVID-19, 2021 has been a successful year for REITs and REIT investors as hard-hit sectors have recovered from 2020 and the digital economy sectors have continued to thrive.
2022 Outlook for the Economy, Commercial Real Estate and REITs
When assessing the outlook for REITs and commercial real estate in 2022 and beyond, it is helpful to distinguish between impermanent or cyclical effects and the longer-term structural changes that result from changes in behavior.