Positive contributors to relative performance included stock selection in the residential sector, and underweight allocations to the lodging and office sectors. An underweight allocation to the self storage and shopping center sectors, along with an overweight to the diversified sector, detracted from relative performance.
Year to date, positive contributors to relative performance included stock selection in the diversified, healthcare, and triple net sectors. An underweight allocation to the regional mall and shopping center sectors, as well as an overweight allocation to the cell tower sector detracted from relative performance.
In the May 2021 REIT Outlook titled, “In Case of Inflation, Buy REITs,” we address the current inflation scenario in the US, and how investors can position their portfolios for the risk of rising inflation. We believe that inflation will likely be temporary, and agree with comments from Fed Chairman Powell that inflation will drift above the 2% target and come back down. However, we point out the risks that could make inflation more than temporary, and explain why REITs are an excellent allocation to hedge a portfolio for such a scenario, especially versus fixed income. As such, we recommend investors have a REIT allocation of 10-15% for proper protection and to provide a rising income stream.
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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