Following a solid first nine months of 2018, the market reversed course and cascaded lower in Q4 due to, among other things, fears that a Federal Reserve misstep and trade wars would lead to a global recession in 2019.  On December 24th, the S&P 500 index hit a new 52-week low just three months after […]

The retail REIT sector (Bloomberg: BBRERTL), which includes malls and shopping centers, underperformed the MSCI US REIT Index (Bloomberg: RMZ) in both 2016 and 2017 by an average of 870 basis points (bps) on a total return basis.  Year to date through November, retail REITs have continued the trend of underperformance, though the 110 bps […]

The office sector, particularly in the public REIT universe, boasts some of the best-looking buildings among all property types.  Called ‘trophy properties’, they are excellent material for press coverage, property tours, and annual report covers; however, they do not always translate into superior long-term total returns.  Case and point: the completion of a new ‘tallest […]

Stocks posted a banner third quarter as the S&P 500 hit a new all-time high and generated its best quarterly return in nearly five years.  Domestic market volatility remained low as investors looked beyond escalating trade rhetoric and weak international market action to focus on a strong US economy.  For the quarter, the S&P 500 […]

Since we published our March 2018 REIT Outlook titled, “Equity REITs at Bargain Prices: An Asymmetric Opportunity,” on March 1, the FTSE NAREIT Equity REIT Index (Bloomberg: FNRE) has produced a total return of +14.1% through September 24.  This compares to +8.8% for the S&P 500 (Bloomberg: SPX) over the same period.   Interestingly, the 10 […]

US REITs are better known for being an inflation hedge, but investors often overlook their proven ability to hedge against international trade and currency risks.  As of August 31, President Donald Trump has slapped nearly $30 billion of tariffs on $120 billion of US imported goods, and he has threatened an additional $170 billion of […]

Following a volatile and slightly negative first quarter, relative calm returned to the markets for most of Q2 as investors digested continued positive earnings results from domestic companies.  For the quarter, the S&P 500 closed at 2,718, generating a total return of +3.4% and bringing the total return for the index to +2.6% in the […]

Self storage is a niche property type within commercial real estate. Self storage demand benefits from all aspects of life—in good times due to home renovations, new jobs/relocation, and summertime storage between college semesters, but also during difficult times such as dealing with a divorce, the passing of a family member, and job dislocation.  The […]

The Chilton REIT Team recently attended the NAREIT REITWeek conference in New York City, where we met with over 50 REIT management teams in a one-on-one or small group setting. The conference was especially important this year due to the significant discounts to Net Asset Value (or NAV) at which many of them were trading. […]

The MSCI US REIT Index (RMS) had a total return of +4.4% in June, while the S&P 500 had a total return of +0.6%. The Chilton REIT Composite underperformed the benchmark for the month by producing a total return of +4.3%, both net and gross of fees. For the second quarter, the Composite produced a […]