The data center REIT sector had a rough year in 2018.  For the first time ever, its total return, -16.1% on an equal-weighted basis and -13.7% on a market cap weighted basis, was more than 650 basis points (or bps) behind the -4.5% and -7.1% total returns of the MSCI US  REIT Index (Bloomberg: RMS […]

The retail REIT sector (Bloomberg: BBRERTL), which includes malls and shopping centers, underperformed the MSCI US REIT Index (Bloomberg: RMZ) in both 2016 and 2017 by an average of 870 basis points (bps) on a total return basis.  Year to date through November, retail REITs have continued the trend of underperformance, though the 110 bps […]

The office sector, particularly in the public REIT universe, boasts some of the best-looking buildings among all property types.  Called ‘trophy properties’, they are excellent material for press coverage, property tours, and annual report covers; however, they do not always translate into superior long-term total returns.  Case and point: the completion of a new ‘tallest […]

Since we published our March 2018 REIT Outlook titled, “Equity REITs at Bargain Prices: An Asymmetric Opportunity,” on March 1, the FTSE NAREIT Equity REIT Index (Bloomberg: FNRE) has produced a total return of +14.1% through September 24.  This compares to +8.8% for the S&P 500 (Bloomberg: SPX) over the same period.   Interestingly, the 10 […]

US REITs are better known for being an inflation hedge, but investors often overlook their proven ability to hedge against international trade and currency risks.  As of August 31, President Donald Trump has slapped nearly $30 billion of tariffs on $120 billion of US imported goods, and he has threatened an additional $170 billion of […]

Self storage is a niche property type within commercial real estate. Self storage demand benefits from all aspects of life—in good times due to home renovations, new jobs/relocation, and summertime storage between college semesters, but also during difficult times such as dealing with a divorce, the passing of a family member, and job dislocation.  The […]

The Chilton REIT Team recently attended the NAREIT REITWeek conference in New York City, where we met with over 50 REIT management teams in a one-on-one or small group setting. The conference was especially important this year due to the significant discounts to Net Asset Value (or NAV) at which many of them were trading. […]

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 […]