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

Following a spectacular year of total returns and relative outperformance in 2021, multifamily REITs have underperformed the MSCI U.S. REIT Index (Bloomberg: RMZ).  The underperformance for multifamily REITs has been a product of both the macro environment (rising interest rates) and record high apartment deliveries, especially in Sun Belt markets.  While the fears are for […]

REIT Outlook

February 1, 2024

Multifamily REITs: Navigating the Sun Belt Amid Record Supply | February 2024

2023 could be described as nothing short of a rollercoaster, as shown in Figure 1.  Our 2023 total return forecast of +8% to +12% ended up being too low relative to the actual calendar year total return of +13.7%, in spite of mid-year prices on the MSCI US REIT Index (Bloomberg: RMZ) falling to levels […]

REIT Outlook

January 1, 2024

2024 Chilton REIT Forecast | January 2024

In December 2023, the MSCI US REIT Index (RMZ) produced a total return of +9.9%.  The Chilton REIT Composite underperformed the benchmark for the month by producing a total return of +7.0% both gross and net of fees.  For the full year of 2023, the Chilton REIT Composite outperformed the RMZ by producing a total […]

REIT Commentary

January 1, 2024

REIT Commentary | December 2023

In November 2023, the MSCI US REIT Index (RMZ) produced a total return of +10.4%. The Chilton REIT Composite outperformed the benchmark for the month by producing a total return of +11.2% both gross and net of fees. Year to date, the Chilton REIT Composite has outperformed the RMZ by producing a total return of […]

REIT Commentary

December 1, 2023

REIT Commentary | November 2023

We recently embarked on a three-day expedition to Los Angeles for the annual REITWorld conference.  We conducted 29 meetings, including 10 exclusive one-on-one sessions with REIT CEOs and CFOs.  Additionally, we attended two property tours organized by companies with properties in the area, for which we were able to not only meet with the CEOs […]

REIT Outlook

December 1, 2023

Property Type Round-Up from REITWorld | December 2023

Public REIT pricing has declined in a steep fashion over the past 22 months.  Although this is not the first time they have had a significant pullback, it is quite rare, as shown in Figure 1.  As recently as March 2020, the drawdown in the FTSE NAREIT All Equity REITs Index (Bloomberg: FNER)* was nearly […]

REIT Outlook

November 1, 2023

Public REITs: Are We There Yet? | November 2023

In October 2023, the MSCI US REIT Index (RMZ) produced a total return of -4.4%. The Chilton REIT Composite outperformed the benchmark for the month by producing a total return of -3.6% gross of fees and -3.7% net of fees. Year to date, the Chilton REIT Composite has outperformed the RMZ by producing a total […]

REIT Commentary

November 1, 2023

REIT Commentary | October 2023

In September 2023, the MSCI US REIT Index (RMZ) produced a total return of -6.8%. The Chilton REIT Composite outperformed the benchmark for the month by producing a total return of -6.4% both gross and net of fees. For the third quarter, the Chilton REIT Composite has underperformed the RMZ by producing a return of -7.3% gross […]

REIT Commentary

October 1, 2023

REIT Commentary | September 2023

The drumbeat calling for the fall of office real estate has been steady and unrelenting since REITs peaked on December 31, 2021.  As we reported in our May 2023 Chilton REIT Outlook titled, “Office REITs: Where is the Bottom?” most people are not surprised to hear that office REITs (as measured by the Bloomberg REIT […]

REIT Outlook

September 1, 2023

Warren Buffett Should Buy the Cell Tower REITs | September 2023

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