We have long considered the cell tower business model as one of the most attractive, boasting consistent cash flow growth with low maintenance capital expenditures.  As such, the cell tower REITs, consisting of Crown Castle (NYSE: CCI), American Tower (NYSE: AMT), and SBA Communications (NASDAQ: SBAC), produced average annualized total returns of 15% from 2007 to 2017, which compared to […]

The MSCI US REIT Index (RMS) had a total return of +3.9% in May, while the S&P 500 had a total return of +2.4%. The Chilton REIT Composite underperformed the benchmark for the month by producing a total return of +2.2%, both net and gross of fees. Year to date, the Chilton REIT Composite has […]

Since President Trump was elected on November 9, 2016, the lodging REIT sector (Bloomberg: BBREHOTL Index) has outperformed the MSCI US REIT Index (Bloomberg: RMS G) by over 2,350 basis points (bps) through April 16, 2018. The strong stock performance has likely been in anticipation of the pro-growth and pro-business agenda that President Trump’s election […]

The MSCI US REIT Index (RMS) had a total return of +1.4% in April, while the S&P 500 had a total return of +0.4%. The Chilton REIT Composite underperformed the benchmark for the month by producing a total return of +0.3% and +0.5%, net of fees and gross of fees, respectively. Year to date, the […]

The first three months of 2018 saw an end to the S&P 500’s nine-quarter winning streak as investor concerns about rising interest rates, the potential for a Fed policy misstep, and fears of a global trade war outweighed extremely positive corporate earnings. For the quarter, the S&P 500 closed at 2,640, generating a total return […]

When we last discussed the healthcare REIT sector in our May 2014 Outlook, the sector was riding high.  Citi had it consistently trading at a large premium to its net asset value (or NAV) since early 2009.  Our recommendation that investors avoid the sector was a bold call, but it has been a key driver […]

A ‘correction’ is defined as a decline of 10% or more from a recent high. As of February 23, 2018, the MSCI US REIT Total Return Index (Bloomberg: RMS G) was trading 11% below its recent high on December 18, 2017. Some pundits assert that a correction can be healthy for a rising market, as […]

Single-family rental homes (or SFRs) have historically been dominated by local “mom and pop” investors considering they own 99% of the 16 million rental homes in the United States. In fact, until the Global Financial Crisis of 2008-09, institutions avoided the asset class due to the lack of available scale and relatively high prices. By […]

Robust corporate earnings results, the strongest holiday spending in six years, and significant tax reform powered the market to a 6.6% total return in Q4. The S&P 500 index closed 2017 at 2,673, posting a heady gain of 21.8% for the year. The best performing sectors for the year were Information Technology, Consumer Discretionary (Amazon, […]

2017 was another roller coaster of a year for REITs, exemplifying how short-term volatility is merely noise in the long-term goal of producing mid to high single digit total returns. Our +5-7% projected 2017 total return for the MSCI US REIT Index (Bloomberg: RMS G) proved to be in the ballpark, as it finished the […]