Calvin Schnure

How Are Equity REITs Positioned for Higher Interest Rates?

1/5/2017 | By Calvin Schnure

How well are stock-exchange listed Equity REITs positioned for the interest rate environment ahead? The Federal Reserve’s recent increase in short-term interest rates has focused attention on debt and leverage positions among investors in commercial real estate, including among Equity REITs. Such attention is warranted, as some commercial real estate investors in the past have experienced financial distress due to high leverage, rising interest expense or low interest coverage ratios, especially during periods of rising interest rates.

Renter Nation? Rising Home Ownership Gives Some Competition to Multifamily REITs

11/2/2016 | By Calvin Schnure

The apartment market has been riding a wave of robust demand and rapidly rising rents for the past several years, pushing multifamily into the leading ranks of commercial real estate. Recently, however, there have been some signs of softening. Rent growth decelerated from its 2015 peak of nearly 6 percent, to a still-respectable 3.3 percent annual increase in the third quarter. Most analysts have pointed to a swell of new construction, which has steadily ramped up from its post-crisis lows and has been running slightly ahead of new demand.

Soft Jobs Numbers Pose Downside Risks to Real Estate, REITs

10/7/2016 | By Calvin Schnure

What happens if “two steps forward, one step back” turns into “two steps forward, two steps back”?

Monthly jobs figures have been choppy over the past few years. Quite often there have been a couple of months of solid gains, followed by a weak month or two. Each time, however, the soft spot was short-lived and employment growth soon turned up again.

REITs Post Robust Earnings and Dividend Payments In Q2

8/23/2016 | By Calvin Schnure

Equity REITs posted robust earnings in the second quarter, according to the NAREIT T-Tracker®, with total FFO of all listed equity REITs increasing 7.1 percent, representing a 10.3 percent gain from the same quarter one year ago. Nearly all major property sectors reported solid increases. This steady growth of earnings is translating into equally strong dividend payments.

REITs and Real Estate Get a Second Wind

7/18/2016 | By Calvin Schnure

The macroeconomic picture took a turn for the worse last winter. Global concerns prompted a sell-off in equity markets, while GDP growth disappointed in the first quarter and job growth showed signs of faltering. Trends in real estate markets added to these worries. New construction, which has been ramping up steadily since 2011, raised the risk of new supply saturating the market. Property prices stalled mid-winter, and prospects of higher interest rates posed growing headwinds for the sector.


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