REIT Market Commentary

Income and Capital Appreciation from Real Estate Investing: The Participation Trophy and the Performance Record

There’s little difference between the income earned by the largest, most sophisticated investors in private equity real estate and the income earned by the smallest individual investors in listed equity REITs.  Read More

Mortgage REITs Combine Current Income, Long-term Total Return and Portfolio Diversification

Mortgage REITs are an investment in real estate finance that combine high current income with long-term total return and portfolio diversification. MREITs have delivered a 21.2 percent total return over the past year, outpacing most other investments over this period. Read More

REIT Volatility, Correlation, Beta, and Alpha as of Mid-2017: Not Your Father’s Small-Cap Value Stocks (Thank Goodness)

Listed equity REITs have generally outperformed small-cap value stocks, posting slightly higher returns but substantially lower volatility and substantially better diversification benefits. Read More

Single Family Rental REITs: Long-term Players Providing Additional Housing Options

Single Family Home Rental REITs have established themselves as long-term players providing additional housing options at a time when the housing market continues to recover.  Read More

Comparing Listed REITs with Private Equity Real Estate: What the Cambridge Associates Data Have to Say

Cambridge Associates reports that private equity real estate funds have underperformed listed equity REITs by 3.91 percentage points per year over the past 25 years. Read More

REIT Industry FFO Exceeds $15 Billion For The First Time Ever

The listed REIT industry continues to grow and prosper. Total Funds from Operations (FFO) of listed Equity REITs rose 7.9 percent in the second quarter, to $15.6 billion, according to the NAREIT T-Tracker®.  Read More

Taking Advantage of Temporary Disconnects in the REIT Market

Value-oriented and momentum-oriented investors look to take advantage of different opportunities: value investors look for stocks selling well below normal, while momentum investors look for stocks that have done well recently.  Both opportunities can be found today among sectors of the REIT market. Read More

Jobs Numbers Bode Well for Office REITs

Nonfarm payrolls rose 209,000 in July, signaling that the economy has good momentum at mid-summer, while office jobs in Gateway Cities have rebounded in recent months..  Read More

Commercial Real Estate Markets Have Settled in for the Long Haul

Commercial real estate markets appear to have settled in for the long haul. New supply and the growth of demand are roughly balanced in most property sectors, vacancy rates are stable and rents growing modestly. Read More

Relative Valuations in the Public and Private Real Estate Markets

Appraisal-based valuations in private real estate markets are being systematically reported at levels that exceed those of reported transactions—in which case there may be more valuation risk in private equity real estate markets than many institutional investors realize. Read More