After we discussed triple net REITs in our June 2021 REIT Outlook, rising interest rates turned spread math into a moving target.  From 2022 to 2024, higher weighted average cost of capital (or WACC), a slower transaction environment, and shifting acquisition cap rates made value creation difficult to underwrite.  In 2025, the pieces are finally […]

The S&P 500 marched higher in the third quarter as continued improvement in the corporate earnings outlook, fading trade policy concerns, a robust AI-driven capex cycle, and the resumption of the Federal Reserve’s rate cutting cycle drove the index to its best quarter of 2025.  Mega-cap growth stocks again led the market to new all-time […]

Almost fifteen years ago, we debuted the Chilton REIT Outlook in July 2011 titled ‘The Role of REITs’ with the goal of informing clients and prospects about the benefits of adding REITs to their portfolios.  Many of the attractive attributes of REITs remain today, but the investment landscape is vastly different.  Ultimately, the MSCI US […]

For many investors in the past decade, e-commerce growth relegated brick and mortar retail to an un-investable world on a gradual death march.  Some viewed the “COVID” e-commerce surge of 2020-21 as the “nail in the coffin”; instead, it proved the essential nature of physical locations in an omnichannel world.  Indeed, Target (NYSE: TGT) touts […]

There’s little question that artificial intelligence (AI) has created more wealth in the past five years than any other industry.  The poster child for this secular growth trend is Nvidia (NASDAQ: NVDA), which has grown its revenues by over 5x in the 5 years ending December 2024, driving its share price up by a factor […]

After a steep drop to near bear market levels in April, strong corporate earnings and outlooks, coupled with tariff de-escalation, helped the S&P 500 rebound and close the second quarter at a fresh all-time high of 6,205.   The second quarter’s robust 10.9% return erased the first quarter’s negative return and brought total year-to-date index gains […]

We recently attended the annual REITWeek conference, where we conducted 31 meetings with REIT CEOs and CFOs.  We also attended two organized dinners, one property tour, and even went for a run through Central Park with a REIT management team to maximize our time in New York City with REIT executives. – Similar to last […]

We published on the office sector two years ago and, following an over 50% pullback between March 2022 and May 2023, contemplated a potential bottom for public office REITs.  The bottom arrived several months later (Figure 1); however, that datapoint only scratches the surface of the office saga.  In our opinion, the real story lies […]

For any readers fortunate enough to avoid the constant and conflicting barrage of headlines in April, uncertainty is up and stocks are down.  The prospect of a trade war is impacting business and consumer confidence, and, more importantly, general uncertainty is further fanning the flames.  In our view, this environment has elevated volatility, which creates […]

2025 started off in promising fashion, with the S&P 500 gaining 4.6% to a fresh all-time high of 6,147 on February 19th.  The index then dropped over 10.0% into correction territory, rebounded, and finally rolled over again to end the quarter -4.3%, at 5,611.  This volatility has extended into 2Q.  Many investors worry that the […]