The Market Commentary blog on reit.com presents analysis of the macro- and micro-economic fundamentals impacting the REIT and commercial real estate industry. The Nareit economics team offers their commentary on the state of the market, the outlook for commercial real estate and breaking macroeconomic news. The opinions set forth here are solely those of its author(s), and do not necessarily reflect the views of the Nareit or its membership.
8/28/2018
Expansion and Growth of REIT Earnings
Net operating income (NOI) of listed REITs rose nearly 50 percent over the past four years. The steady increases in same-store NOI at a pace above the inflation rate should continue to drive earnings, and valuations, upward in the future.
8/24/2018
FFO of listed REITs rose 5.5 percent, to $16.4 billion, in Q2
There are a multitude of signs that REIT performance will likely remain strong in the months ahead.
8/22/2018
Low Cap Rates Are Flashing a Signal, but is it Yellow, Red… or Green?
Are low cap rates flashing a signal that speculative pricing is setting the market up for a correction?
8/21/2018
The REIT-Stock Correlation Has NOT “Spiked to One” During Market Crises
It is often said that “correlations spike to one during a crisis,” but REIT-stock correlations have actually been lower during the worst stock market downturns in history, reinforcing the case for REITs as a portfolio diversifier even during crises.
8/10/2018
A Strong Economy Boosts Commercial Real Estate in Q2
The economy is enjoying above-trend growth, with some boost from last year’s tax cuts, which supports demand for nearly all types of commercial real estate.
7/23/2018
What Are the Structural Factors That Boost Long-Term REIT Performance?
REITs have provided investors solid returns over the years, despite short-term zigs and zags along the way, in part because of structural features of the REIT model.
7/20/2018
Inflation Protection from REITs: Constructing a Diversified Inflation-Protecting Portfolio
How to construct an inflation-protecting portfolio without exposing yourself to the risk of guessing wrong about an increase the inflation rate.
7/18/2018
Inflation Protection from REITs: Don’t Jump Out of the Frying Pan Into the Fire
Investors who depend on commodity investments to protect against inflation risk negative returns if inflation doesn’t meet their expectations, whereas REITs have historically provided strong returns in both high-inflation and low-inflation environments.
7/16/2018
Inflation Protection from REITs: Solving a Growing Problem
Ask anybody which investments “hedge” against inflation, and real estate is one of the three that pretty much everybody will identify, along with commodities and inflation-linked bonds
7/10/2018
REITs Rally on Interest Rate Relief
REITs have outperformed the S&P 500 in recent months, with a cumulative total return of 14.6 percent since their low point in early February.
The Market Commentary blog on reit.com presents analysis of the macro- and micro-economic fundamentals impacting the REIT and commercial real estate industry. The Nareit economics team offers their commentary on the state of the market, the outlook for commercial real estate and breaking macroeconomic news. The opinions set forth here are solely those of its author(s), and do not necessarily reflect the views of the Nareit or its membership.
Expansion and Growth of REIT Earnings
FFO of listed REITs rose 5.5 percent, to $16.4 billion, in Q2
Low Cap Rates Are Flashing a Signal, but is it Yellow, Red… or Green?
The REIT-Stock Correlation Has NOT “Spiked to One” During Market Crises
A Strong Economy Boosts Commercial Real Estate in Q2
What Are the Structural Factors That Boost Long-Term REIT Performance?
Inflation Protection from REITs: Constructing a Diversified Inflation-Protecting Portfolio
Inflation Protection from REITs: Don’t Jump Out of the Frying Pan Into the Fire
Inflation Protection from REITs: Solving a Growing Problem
REITs Rally on Interest Rate Relief
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