It’s no secret the office sector faces extreme stress due to the surge in remote work.  Though there was some progress on return to office (RTO) last fall, technology tenants reversed a multi-year leasing spree while financing risks only added fuel to the decline in 2023.  As a result of the pandemic’s ‘forced experiment’ with […]

REIT Outlook

May 1, 2023

Public Office REITs: Where is the Bottom? | May 2023

In June, 2022, we published ‘The Private Equity Put’, essentially urging all public REIT teams to consider going private at valuations that now most companies would only dream of getting.  Unfortunately, soon after that piece was published, the financing environment changed dramatically for private real estate players.  – While the tombstones may have different names […]

REIT Outlook

April 1, 2023

Arbitrage Opportunity Available in Public REITs | April 2023

Every facet of the real estate industry was upended by Covid-19 and ensuing lockdowns, but arguably no industry saw a more material impact than travel and lodging.  We sold the entirety of our lodging exposure during March of 2020 (going from ~5% in early 2020 to 0% by the end of March) as we anticipated […]

REIT Outlook

March 1, 2023

Lodging REITs: Valuations Already Reflect Improvements | March 2023

Though the elevator pitch for data centers due to their vital role as the backbone of the internet seems like ‘easy money’, investing in this sector has many more elements to consider other than ‘data creation is growing exponentially’.  Yes, the demand for data storage has been a major growth story for ten years, but […]

REIT Outlook

February 1, 2023

Positive Data for Data Centers | February 2023

Although the change in public REIT equity prices over the past 12 months would not suggest it, 2022 actually saw earnings growth arrive above our initial expectations.  Specifically, occupancy continued its positive trajectory, leading to further upward pressure on rents across nearly every property type.  Additionally, the inflationary pressures helped to slow new construction, creating […]

REIT Outlook

January 3, 2023

2023 Chilton REIT Forecast | January 2023

The Chilton REIT Team descended upon San Francisco in mid-November for a packed three days of meetings with management and property tours.  The annual REITWorld conference is extremely important for us to catch up in person with the CEOs and CFOs of our portfolio companies, ramp up on potential new ideas, connect with peers, and […]

REIT Outlook

December 1, 2022

Property Type Round-Up from REIT World | December 2022

For much of the last decade, pundits have been calling for the death of brick and mortar retail.  Rather than a supposed death knell, the last few years – marked by continued e-commerce growth, changing consumer behavior, and supply chain constraints – proved out the benefit of retailers offering customers multiple channels and highlighted the […]

REIT Outlook

November 1, 2022

Shopping Center REITs: Supply/Demand Too Good To Ignore | November 2022

The hottest topic of 2022 that everyone can relate to or has had their own personal experience with has undoubtedly been inflation.  In August 2022, inflation prices were 8.3% higher compared to a year before according to the Consumer Price Index report.  While slower than the prior month when inflation climbed 8.5%, it’s still uncomfortably […]

REIT Outlook

October 1, 2022

Residential REITs: The Property Type You Can Actually Afford | October 2022

Over the past 40 years, due in part to actions by the Federal Reserve, Americans have become more and more obsessed with yield.  Highlighted in Figure 1, after peaking at 15.8% in September 1981, the US 10 yr Treasury yield bottomed at 0.5% in August 2020.  As intended, the lower ‘risk-free rate’ increased demand for […]

REIT Outlook

September 1, 2022

All Yield is Not Created Equal | September 2022

The dominant force in the markets this year has been uncertainty.  Uncertainty around interest rates, inflation, and a myriad of other factors have driven investors into overdrive to figure out the playbook for changing times.  REITs have not been spared from the market turbulence, but we see the long term value proposition for REITs at […]

REIT Outlook

August 1, 2022

Today’s Equity REITs:  Dividend Raises in Economic Uncertainty | August 2022

Build confidence in your financial future

Contact us

with Chilton Capital Management