11/11/2020 | by
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Nareit Webinar Provides Analysis of Recent REIT Performance, Previews REITworld

On Tuesday, Nov. 10, more than 150 industry professionals attended Nareit’s “REIT Investing Webinar: The Role of REITs in Your Portfolio.” A PDF version of the slides is available for download here. Please note that the information provided in this webinar is solely educational in nature, and is not intended by Nareit to serve as the primary basis for any investment decision. Past performance is not indicative of future results.

Nareit’s senior vice president, investment affairs, Abby McCarthy, began the webinar by providing an overview of the REIT industry. Commercial real estate is a fundamental asset class, and REITs are an effective and liquid way of investing in real estate. She noted that the REIT industry today has an equity market capitalization of $1.2 trillion and that more than 145 million Americans live in households with REIT investments.

“REITs are known to be a long-term, income-producing stock that also gives you the benefit of capital appreciation,” she said. McCarthy went on to highlight recent research from Wilshire Funds Management about the optimal allocation to REITs based on life stage or years to retirement. The study recommends a 15% allocation to REITs for those with a 45-year investment horizon and a 7% allocation for those in retirement.

Nicole Funari, Nareit’s vice president of research, went on to discuss the current market conditions in the REIT industry. She noted that REITs entered the COVID-19 crisis with strong balance sheets and have shown resiliency. However, the pandemic has impacted each REIT sector differently. “Almost two-thirds of REITs aren’t affected as much by the health crisis, although they are affected by the overall economic downturn,” said Funari. Lodging/resorts and retail sectors have been the most negatively impacted by the pandemic, while some sectors—such as data centers and infrastructure—have seen a positive impact due to changing consumer habits.

Funari noted that Nareit’s REITworld: 2020 Annual Conference is a great opportunity to hear from more than 80 REIT management teams representing a variety of sectors. REITworld will be held virtually from Nov. 17-19, and sessions will be available on-demand for two weeks after the conference concludes. Learn more and register for free here.

Funari recommended exploring Nareit’s many resources for REIT investors prior to attending REITworld. The REIT Directory is a great tool for learning more about individual companies, while the list of REIT funds allows users to explore REIT and real estate funds and filter by performance, expense ratio, and more. The REIT Quick Facts guide provides resources for financial professionals, including Morningstar Fact Sheets. Nareit also provides REIT-related research and data, including daily, monthly, quarterly, and yearly reports.