In March, the MSCI US REIT Index (RMZ) produced a total return of +6.5%. The Chilton REIT Composite outperformed the benchmark for the month by producing a total return of +8.3%, both gross and net of fees. In the first quarter, the Chilton REIT Composite outperformed the RMZ by producing a total return of -4.0% net of fees and -3.8% gross of fees, which compared to the RMZ total return of -4.1%.
Positive contributors to relative performance included an overweight allocation to the cell tower sector, an underweight allocation to the regional mall sector, and stock selection in the shopping center sector. Stock selection in the diversified and industrial sectors, along with an overweight to the residential sector detracted from relative performance.
Year to Date (YTD) Attribution
Year to date, positive contributors to relative performance included stock selection within the healthcare sector, and underweight allocations to the regional mall and data center sectors. An overweight to the cell tower sector, an underweight to the office sector, and stock selection within the residential sector detracted from relative performance.
YTD Contributors Summary
YTD Detractors Summary
In the April 2022 REIT Outlook titled, “Chilton REIT Roadmap, Revisited,” we review the fundamental analytical process that we have honed over the past 17 years. This process has been proven in multiple economic environments and over full cycles, leading to average five year gross outperformance of 328 basis points (or bps) per year and net outperformance of 239 bps per year, well beyond our goal of 200 bps of gross outperformance over a given five year period. The process is designed to optimize risk-adjusted returns by applying a proprietary premium or discount to our estimate of intrinsic value looking out two years. Thus, while it has outperformed over 90% of the 172 three year rolling periods since inception, we are especially proud of the perfect record of outperformance over all 148 five year periods, both gross and net of fees.
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.
Past performance is not indicative of future results. Investment returns and principal value will fluctuate so that an investors account, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted.
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