Historically, following periods of rising interest rates, REITs have outperformed the S&P 500 over the subsequent 90-, 180-, and 365-day periods as shown in Figure 1 below.  We discussed this phenomenon in great detail in our May 2024 REIT Outlook titled An Interesting Time to Invest in REITs.  From its May 1st release through September […]

REIT Outlook

October 1, 2024

Assessing the Impact of Mortgage Rates on REITs | October 2024

Commercial real estate fills many roles in society and, arguably, none is more essential than feeding the population.  The first thought might be grocery stores, but today’s report dives deeper into the extensive infrastructure and logistics existing between food producers and consumers.  Not only are frozen food sales growing rapidly (estimated 5% compound annual growth […]

REIT Outlook

September 1, 2024

Essential Business Spotlight: Cold Storage | September 2024

Originally created in 1960, the REIT structure’s purpose was to democratize real estate for the masses.  In addition to managing properties, reporting and complying with SEC requirements, and paying dividends from cash flow, they also employ finance, investment, development, and strategic personnel to make decisions that can grow value beyond a steady state portfolio.  In […]

REIT Outlook

August 1, 2024

The ‘X’ Factor for REITs | August 2024

We recently attended the annual REITWeek conference, where we conducted 36 meetings with REIT CEOs and CFOs.  We also attended four organized dinners, one property tour, and a run around Central Park with a REIT management team to maximize our time in New York City with REIT executives. – The key themes were: 1) a […]

REIT Outlook

July 1, 2024

Equity REITs: Takeaways from REITWeek 2024 | July 2024

Quarter to date, the Chilton REIT Composite has outperformed the RMZ by producing a total return of +1.8% gross of fees and +1.6% net of fees, which compares to the RMZ’s total return of +0.1%.  Year to date, the Chilton REIT Composite has underperformed the RMZ by producing a total return of -0.3% gross of […]

REIT Commentary

July 1, 2024

REIT Commentary | Second Quarter 2024

In recent history, e-commerce can be argued as the biggest societal shift to impact commercial real estate.  We’ve detailed the topic in retail outlooks from November 2022 and November 2021, and more recently in our Industrial Outlook from March 2024.  Many expected the surge in online shopping during the pandemic to supercharge the “death of […]

REIT Outlook

June 3, 2024

Retail REITs: Near Term Capex Caution Despite Strong Fundamentals | June 2024

Unfortunately for REIT investors, REIT prices have yet to decouple from movements in long term interest rates – and rates are rising again in 2024 as of April 30.  Because real estate typically generates a steady (and growing) yield, there has historically been a playbook that REIT prices should trade down when rates are rising, […]

REIT Outlook

May 1, 2024

An Interesting Time to Invest in REITs | May 2024

One of the most important jobs of REIT executives and Boards of Directors is capital allocation.  Depending on cost of capital, acquisition and development yields, and the point in the real estate cycle, a public REIT will have to employ different capital allocation strategies.  One of the forgotten and often purposely swept-under-the-rug line items is […]

REIT Outlook

April 1, 2024

The Time is REIT Now | April 2024

In March 2024, the MSCI US REIT Index (RMZ) produced a total return of +2.0%.  The Chilton REIT Composite underperformed the benchmark for the month by producing a total return of +1.7% both gross and net of fees.  Year to date, the Chilton REIT Composite has underperformed the RMZ by producing a total return of […]

REIT Commentary

April 1, 2024

REIT Commentary | First Quarter 2024

As a result of the normalization of e-commerce growth after the pandemic boom, there have been numerous headlines about retailers and logistics companies rationalizing their warehouse footprints, including from the 800 lb. gorilla, Amazon (NASDAQ: AMZN).  However, these normalizations come off an exceptionally high base, and we believe the forward outlook for industrial is far […]

REIT Outlook

March 1, 2024

A Differentiated View Within Industrial REITs | March 2024

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