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 […]

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 […]

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 […]

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, […]

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 […]

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 […]

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 […]

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 […]

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 […]

Although healthcare was thrown for a loop during the pandemic, Senior Housing (SH) is experiencing some of the strongest fundamentals we have seen in a long time.  Rebounding occupancy, stronger rental rates, and moderating labor headwinds are generating double digit Net Operating Income (NOI) growth.  Occupancy is still below prior peaks, but we believe demographic […]