A few short-lived bursts of volatility in August, caused by North Korean provocation and two devastating hurricanes, represented only a brief pause in third quarter market momentum. The S&P 500 index closed at 2,519 at quarter end, posting a 4.5% total return for Q3 and bringing 2017 year-to-date gains to 14.2%. Accelerating domestic earnings growth, […]

Portfolio Insights

October 3, 2017

Portfolio Insight | 3rd Quarter 2017

Natural disasters are, unfortunately, part of life.  They are predictably unpredictable, which is an attribute that can influence population growth, job growth, and real estate.  The invention of insurance, provided by companies that can diversify their risk among multiple cities, has enabled cities that are prone to such disasters to attract residents and employers alike.  […]

REIT Outlook

October 1, 2017

Silver Lining to Harvey & Irma: Surging REIT Fundamentals

Supply chain innovation, e-commerce, and measured new supply have led to the best operating environment for industrial REITs that we can remember.  However, investor demand has also surged.  Industrial real estate is trading at record-high cash flow multiples in the public and private markets.  For the first time in our memory, the best coastal warehouses […]

REIT Outlook

September 5, 2017

It’s a Great Time to Own a Warehouse

It seems every day a negative news article is written about brick-and-mortar (B&M) retailers, questioning the future of retailers and retail real estate due to the impact of e-commerce (also read “Amazon” (NASDAQ: AMZN)).  As a result, the S&P Retail sector ETF (NYSE: XRT) is down 5.9% year to date, and the Bloomberg REIT Shopping […]

REIT Outlook

August 1, 2017

REITerating our Conviction on High Quality Retail Real Estate: Strip Centers

Volatility was surprisingly low in the second quarter of 2017 as a global economic recovery, accelerating domestic earnings growth, and continued optimism regarding President Trump’s pro-growth plans fueled a steady march to new all-time market highs. The S&P 500 index closed at 2,423 on June 30, posting a 3.1% total return for Q2.  In the […]

Portfolio Insights

July 7, 2017

Portfolio Insight | 2nd Quarter 2017

Stock performance over the long term should be based on fundamentals, but short term performance can be heavily influenced by sentiment.  Nearly impossible to quantify, sentiment can most certainly be felt, seen, and heard.  We believe the recent collapse in mall and shopping center REIT share prices may be the product of one-sided anecdotes, misleading […]

REIT Outlook

July 5, 2017

REITerating our Conviction on High Quality Retail Real Estate: Malls

After 5 years of above average apartment REIT Same Store Revenue (SSRev) growth, concerns of increasing supply in 2016 threatened the outlook for the sector.  As a result, apartments (Bloomberg: FNAPTTR) underperformed the MSCI US REIT Index (Bloomberg: RMS G) by 570 basis points (or bps) in 2016.  Yet, in spite of the negative sentiment, […]

REIT Outlook

June 1, 2017

Apartment REITs: A Deep Dive into Supply/Demand Forecasting

The term ‘cash cow’ originates from the incredible investment characteristics of a dairy cow. Despite only needing to feed a cow inexpensive hay, it can produce around 20,000 gallons of milk in a lifetime, and then be sold for meat. Used in a matrix designed by Boston Consulting Group, cash cows are products or companies […]

REIT Outlook

May 1, 2017

Why Publicly-Traded REITs are Better Than a Cash Cow

The MSCI US REIT Index (RMS) had a total return of +3.9% in March, while the S&P 500 had a total return of -2.5%.  The Chilton REIT Composite underperformed the benchmark for the month by producing a total return of +3.0%, both gross and net of fees.  Year to date, the Chilton REIT Composite has produced […]

REIT Commentary

April 5, 2017

REIT Commentary

A lot has happened since we last wrote about data center REITs in December 2013. We believe the space remains undercovered and misunderstood, while strong secular demand shifts will benefit the entire sector over the coming decade. Our research indicates that network-dense data center REITs should continue to grow cash flow per share faster than […]

REIT Outlook

April 1, 2017

Network-Dense Data Center REITs: Future-Proofing Your Portfolio

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