In November, the MSCI US REIT Index (RMZ) produced a total return of -0.7%. The Chilton REIT Composite underperformed the benchmark for the month by producing a total return of -1.0%, both gross and net of fees. Year to date, the RMZ has produced a total return of +31.6%, which compares to the Chilton REIT Composite at +27.9% net of fees and +28.7% gross of fees.
Positive contributors to relative performance included underweight allocations to the lodging and triple net sectors, along with stock selection in the industrial sector. Stock selection in the data center sector, along with an overweight allocation to the diversified sector and an underweight allocation to the regional mall sector, detracted from relative performance.
Year to Date (YTD) Attribution
Year to date, positive contributors to relative performance included underweight allocations to the office, lodging, and triple net sectors. Underweight allocations to the regional mall and shopping center sectors, and an overweight allocation to the cell tower sector detracted from relative performance.
YTD Contributors Summary
YTD Detractors Summary
In the December 2021 REIT Outlook titled, “Property Type Round-Up from REIT World”, we provide a brief summary of our top takeaways from our meetings with 31 REIT management teams at the REIT World virtual conference. Almost all of the management teams were extremely upbeat about their businesses and the prospects for 2022. Office, cold storage, and lodging were the exceptions, though each company laid out a path for a return to pre-COVID fundamentals. Inflation was an important topic that we believe will be a benefit for many of the companies in the Chilton REIT Composite, especially those with shorter lease terms and fixed rate debt.
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.
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