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 […]

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 […]

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 […]

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 […]

Nareit, located in Washington DC, is the trade organization primarily representing real estate investment trusts—REITs. Combining the assets of all 200 REITs, public and private, produces nearly $3 trillion of real estate. It conducts two main conferences each year that attract REIT management teams, investors, lenders, and investment bankers. The November conference, called REIT World, […]

Despite consensus expectations for rising long term interest rates over the past five years, the US 10 year Treasury yield is still trading at below where it was four years ago.  Now, with a new Federal Reserve Chair nomination expected by November 3, global economic growth picking up, potential for tax reform, and tightening Fed […]

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.  […]

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 […]