REITs invest in the majority of real estate property types, including offices, apartment buildings, warehouses, retail centers, medical facilities, data centers, cell towers, infrastructure and hotels.
The REIT ESG Dashboard identifies and tracks environmental, social, and governance (ESG) key performance indicators for the U.S. REIT industry.
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.
The May/June issue of REIT magazine features a roundtable discussion with IR executives on key issues for 2022, a look at pension funds are deploying more capital to REITs, REIT support for LGBTQ+ employees, and much more.
Nareit’s REITworks is an educational conference where industry professionals will have the opportunity to learn about the latest ESG developments impacting the real estate sector. REITworks will be held Sept. 12-13 in La Quinta, California.
For 60 years, Nareit has led the U.S. REIT industry by ensuring its members’ best interests are promoted by providing unparalleled advocacy, investor outreach, continuing education and networking.
The yield spread to Baa corporates as of the end of 2016 was in the bullish part of its historic range—and if a wide variety of estimates of the past relationship between spreads and forward-looking returns continues to hold, that currently bullish spread would suggest relatively bullish future total returns for investors in exchange-traded Equity REITs.
The price-to-NAV spread estimated at the end of 2016 suggests that total returns on exchange-traded Equity REITs would average about 13.6% per year over the next five years.
An investment performance comparison between listed equity REITs and the rest of the U.S. stock market—segmented by sector or by style—highlights the long-term diversification benefits of the listed equity REIT market.
It may be surprising to many investors to learn that the same data they may use to value exchange-traded Equity REITs can also be used as a tactical signal for shifting capital between REITs and non-REIT stocks.
The headline for the Mortgage REIT industry is a big one: the dividends paid by exchange-traded Mortgage REITs yield 10.54%, on average, as of the beginning of February 2017.
There’s a persistent, predictable relationship between the liquid and illiquid real estate markets: private-side real estate valuations respond more slowly to changes in market conditions than do public-side valuations, so the values in private, illiquid markets typically lag public market values by two to five quarters on average, depending on whether participants in private markets are evaluating market conditions by looking at completed transactions or at property appraisals. Correcting for that lag can give you a pretty good sense of whether a public/private arbitrage opportunity has arisen.
To gauge the possible impact of continued Fed tightening on REIT operating performance in 2016, NAREIT economist Calvin Schnure analyzed REIT industry operating performance during the 2004-2006 cycle of gradual Fed rate increases following what was then a historically long period of low rates.
A number of analysts have noted that increasing construction and high property prices often presage a downturn in the sector, and have asked whether this market cycle may be approaching its 9th inning. NAREIT economists have examined data from several sources to shed further light on the question of whether the real estate sector may be approaching a correction.
Investment real estate values declined by -0.32 percent during April 2016 according to the FTSE NAREIT PureProperty® Index Series, which provides the earliest measurement of changes in the market values of properties held for investment purposes.
REITWeek, NAREIT’s annual investor forum, is the REIT industry’s largest investor conference. This year’s REITWeek, held June 7 – 9 in New York had a record attendance of nearly 3,000, as investors, analysts and media gathered to meet with the top management teams of more than 200 REITs. Here are key takeaways from this year’s conference.
Investment real estate values increased by +0.57 percent during May 2016 according to the FTSE NAREIT PureProperty® Index Series, which provides the earliest measurement of changes in the market values of properties held for investment purposes.
The recovery in commercial real estate markets for the past several years has been uneven and often disappointing, much like the economy as a whole.
Over the two market days following the Brexit vote, U.S. stock market volatility more than doubled, from 9.9 percent (below its inter-quartile range) to 22.0 percent (above its IQR)—but U.S. REIT market volatility only nudged up from 9.6 percent to 10.9 percent.
Equity REITs significantly expanded their holdings of income producing real estate in recent years, buying a total of $260 billion of commercial property between 2011 and 2015.
The yield spread to Treasuries as of the end of 2016 was in the bullish part of its historic range—and if a wide variety of estimates of the past relationship between spreads and forward-looking returns continues to hold, that currently bullish spread would suggest relatively bullish future total returns for investors in exchange-traded Equity REITs.
I think it’s very difficult to make any thoughtful (let alone empirically based) case for predicting that the current real estate market cycle is nearing its end. The evidence simply isn’t there.