The information contained herein should be considered to be current only as of the date indicated, and we do not undertake any obligation to update the information contained herein in light of later circumstances or events. This publication may contain forward looking statements and projections that are based on the current beliefs and assumptions of Chilton Capital Management and on information currently available that we believe to be reasonable, however, such statements necessarily involve risks, uncertainties and assumptions, and prospective investors may not put undue reliance on any of these statements. This communication is provided for informational purposes only and does not constitute an offer or a solicitation to buy, hold, or sell an interest in any Chilton Capital Management investment or any other security.
In 2020, positive contributors to relative performance included an overweight to the data center and cell tower sectors, and an underweight to the healthcare and shopping center sectors. An underweight to the self storage sector, an overweight to the specialty sector, and stock selection in the office sector detracted from relative performance.
Positive contributors to relative performance included an overweight to the data center and cell tower sectors, and an underweight to the healthcare and regional sectors. An underweight to the self storage sector, overweight to the diversified sector, and stock selection in the residential sector detracted from relative performance.
In the April 2020 REIT Outlook titled, “Be Safe, Buy REITs,” we put the recent pullback into perspective versus the 2008-2009 recession. In 2020, REIT balance sheets are healthier than they have ever been, but near term cash flows could be more at risk due primarily to rent deferrals across most core property sectors. In our opinion, the market reaction thus far has been too negative despite the uncertainty surrounding the economy and COVID-19. We believe the market is not giving REITs enough credit for their balance sheets, which will give them ample liquidity to survive a reasonable decline in cash flow. By several measures, REITs are more inexpensive today than they were in 2009, despite having much lower risk of bankruptcy. Therefore, we believe there is a unique opportunity to buy high quality commercial real estate at an unwarranted discount.
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