What is a REIT? A REIT is a corporation that either owns interests in commercial real estate (Equity REITs) or acts as a lender (Mortgage REITs). All REITs are exempt from Federal income taxes provided they adhere to a number of regulations; most notably, they must payout at least 90% of net income as dividends. […]

On February 15, 2019, shares of XPO Logistics (NYSE: XPO) fell 14% after the company announced that it was losing some contracts with Amazon (NASDAQ: AMZN).  XPO is a third party logistics provider (or 3PL) that received $900 million in revenue from AMZN in 2018 for delivering packages to its customers.  Because of AMZN’s decision […]

  The market soared in the first three months of 2019, with the S&P 500 making its largest quarterly gain since the third quarter of 2009. A relatively inexpensive and oversold market at the beginning of the year had positioned stocks for a bounce. Fading fears regarding potential Fed missteps, interest rates, and trade wars […]

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In March, the Chilton REIT team participated in the Citi Global Real Estate Conference in Fort Lauderdale, FL, attended by over 185 CEOs of real estate companies from around the world. Perhaps slightly influenced by the +12.0% year to date total return of the MSCI US REIT Index as of March 1, 2019 (the day […]

Commercial real estate is one of the oldest industries in the world, thus making it one of the most mature.  As it has developed, transparency has increased, making it harder to find opportunities for significant wealth creation.  The single family residential real estate industry is even older, and therefore one would think it presents even […]

“If you don’t know where you are going, any road will get you there.”  —Lewis Carroll You wouldn’t leave your house on a 1,000 mile journey without first consulting a map (I’m showing my age) or a GPS app on your phone. You would likely put in the destination and look at the options, determining that […]

The data center REIT sector had a rough year in 2018.  For the first time ever, its total return, -16.1% on an equal-weighted basis and -13.7% on a market cap weighted basis, was more than 650 basis points (or bps) behind the -4.5% and -7.1% total returns of the MSCI US  REIT Index (Bloomberg: RMS […]

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 […]