After attending November’s NAREIT Conference in Los Angeles, we returned with a wealth of new ideas, information, and perspectives gleaned from management teams and our fellow investors. It also reminded us how much the industry and its investor base have evolved over the past several decades. Specifically, investors that are not dedicated to any particular […]
December 1, 2019
The acronym R.E.I.T. stands for something specific: Real Estate Investment Trust. However, REITs come in many different forms. While the Chilton REIT Strategy is comprised of only publicly traded equity REITs, some brokers have recommended ‘non-traded REITs’ to their clients as a steady source of income and a safe store of principal. For the purposes […]
November 1, 2019
Since we began publishing the Chilton REIT Outlook, we have consistently been proponents of a US-focused, actively managed strategy. However, international REIT markets across both developed and emerging countries have made significant advancements in the ‘investability’ of their own publicly traded real estate securities as of late. We now believe such markets have matured and […]
October 1, 2019
On August 29, the US 10 year US Treasury yield was 1.5%, approximately one basis point (or bp) below the US 2 year Treasury yield. This ‘inverted’ yield curve has predicated each recession by an average of 19 months for the past 50 years. Figure 1 shows the past 20 years of the spread between […]
September 1, 2019
Another month, another retail bankruptcy, another ‘win’ for e-commerce, and a ‘loss’ for brick-and-mortar. Houston-based Charming Charlie’s filed for Chapter 11 bankruptcy on July 11, which will result in 261 store closings across the country. It is the second bankruptcy in as many years for Charming Charlie’s, which the media roundly blames on the impact […]
August 1, 2019
Equity REITs have become a ‘mirror’ of the US economy, and it’s increasingly difficult to make generalizations about all REITs since fundamental drivers vary among the 15 REIT sectors. But, as yield-oriented companies, they do benefit when interest rates move downward as we have seen recently. As of June 30, 2019, Equity REITs are up […]
July 1, 2019
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. […]
June 1, 2019
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 […]
May 1, 2019
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 […]
April 1, 2019
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 […]
