Positive contributors to relative performance included stock selection in the industrial sector, an overweight to the cell tower sector, and an underweight to the lodging sector. An underweight allocation to the self storage sector, along with stock selection in the shopping center and specialty sectors, detracted from relative performance.
Year to date, positive contributors to relative performance included underweight allocations to the triple net and data center sectors, along with stock selection in the healthcare sector. An underweight allocation to the regional mall and shopping center sector, as well as an overweight allocation to the cell tower sector detracted from relative performance.
In the April 2021 REIT Outlook titled, “Takeaways from the 2021 Citi REIT CEO Conference,” we provide the most important findings from our virtual visits with almost 40 REITs in March. The access to REIT CEOs and CFOs was instructive in helping us to frame the next few years of earnings and dividend growth, along with key insights into asset values. The meetings spanned across most of the REIT property types, and included companies we own and ones we are interested in owning in the near future. Importantly, almost all of the business updates were positive, and most of it has been directly attributable to the successful distribution of the COVID-19 vaccine domestically, which has allowed businesses and consumers to spend with confidence, which is driving rents, occupancy, and asset prices. We came away with a positive near term view on REIT fundamentals, and believe that investors can confidently allocate to REITs as a ‘reopening trade’ with inflation protection.
We are proud to announce that Kevin Egan has joined the team as a Senior Analyst as of March 29. Kevin’s background includes 5 years covering REITs at Goldman Sachs and Morgan Stanley, where he covered triple net, healthcare, and self storage REITs.
Previous editions of the Chilton Capital REIT Outlook are available at www.chiltoncapital.com/category/library/reit-outlook/.
An investment cannot be made directly in an index. The funds consist of securities which vary significantly from those in the benchmark indexes listed above and performance calculation methods may not be entirely comparable. Accordingly, comparing results shown to those of such indexes may be of limited use.
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 investment or any other security.
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