In September, the MSCI US REIT Index (RMZ) produced a total return of -5.5%. The Chilton REIT Composite underperformed the benchmark for the month by producing a total return of -6.1%, gross and net of fees. In the third quarter, the RMZ produced a total return of +1.0%, which compared to the Chilton REIT Composite at +0.8% net of fees and +1.0% gross of fees. Year to date, the RMZ has produced a total return of +23.0%, which compares to the Chilton REIT Composite at +21.7% net of fees and +22.3% gross of fees.
Positive contributors to relative performance included an overweight allocation to the diversified sector, an underweight allocation to the triple net sector, and stock selection in the healthcare sector. Stock selection in the industrial sector, along with an overweight allocation to the cell tower sector and an underweight allocation to the lodging sector, detracted from relative performance.
Year to Date (YTD) Attribution
Year to date, positive contributors to relative performance included stock selection in the diversified and healthcare sectors, as well as an underweight allocation to the office sector. 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.
YTD Contributors Summary
YTD Detractors Summary
In the October 2021 REIT Outlook titled, “Uneven COVID Response Worldwide Creates Opportunity in Global REITs”, we provide a refresher on the Chilton Global Real Estate Strategy, which now has a 32-month track record. The outperformance versus the benchmark is attributable to the three-pronged alpha-production method that we believe is repeatable going forward. The Chilton Global Real Estate Strategy is an appropriate solution for investors seeking to diversify and gain exposure to international markets, creating lower volatility.
Matthew R. Werner, CFA
Bruce G. Garrison, CFA
RMS: 2890 (8.31.2021) vs 2220 (12.31.2020) vs 346 (3.6.2009) and 1330 (2.7.2007)
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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