Why Look to REITs for Opportunities?
HEDGING AGAINST INFLATION Property stocks and REITs have often been viewed as inflation hedges because expected inflation will affect prices of real estate, and rental income tends to rise along…
RETURNS AND RISKS OF REITS REIT and property stock performance has been relatively strong over the long term, especially when compared with traditional bond and equity indices. Since 1992, the…
COMPARING DIVIDEND YIELDS ACROSS ASSET CLASSES Since 1999, approximately half of the total return of the Dow Jones U.S. Select REIT Index has come from dividends. During periods of heightened…
To qualify as a REIT, a company must have most of its assets and income tied to real estate investment and must pay out almost all of its taxable income…
The Evolution of REITs The basic concept of REITs originated with the business trusts that were formed in Massachusetts in the mid-19th century, when the wealth created by the industrial…
By Michael Orzano, Director, Global Equity Indices Publicly traded property stocks, including real estate investment trusts (or REITs) and real estate operating companies (or REOCs), allow investors to gain exposure…
Not only do REITs (RWR)(ICF) help diversify a portfolio, but they also bolster portfolio income with their steady dividends and their long-term capital appreciation.
REITs (IYR)(VNQ) are known for their high dividend yields, outclassing almost all other broad market indices.
Not only do REITs tend to provide steady and stable returns over the long term, but they also help in diversifying investor portfolios effectively.
The REITs (IYR) sector has shown phenomenal growth over the years. In the past five decades, REITs have grown to a market cap of nearly $1 trillion.
Let’s talk about the two main types of REITs (ICF)—equity REITs and mortgage REITs.
In this series, we’ll get down to the brass tacks of investing in the REIT sector, the market’s current landscape, and the benefits you can expect from this type of investment.
Rent increased 0.4% for industrial properties in 2Q15, which was unchanged from the previous quarter, but lower than the 0.5% 2Q14 growth.
On a monthly basis, the commercial property prices experienced a gain of 0.7% in July. The commercial property prices have now risen for 66 consecutive months.
The total private commercial construction spending increased year-over-year by 12.7% to a seasonally adjusted annual rate of $696 billion in July.
While the higher volatility has affected the broader indices during the past two months, the impact was more evident on REIT stocks.
The most common way of calculating the relative value of a REIT such as Simon Property Group (SPG) is the price-to-FFO (funds from operations) multiple.
The dividend yield for REITs pales in comparison to the S&P 500 earnings yield of 5.73% in August.
The labor shortage in the construction sector can be attributed to many factors. For example, workers who lost their jobs during the housing crash have moved to other sectors.
Construction cost is one of the major components of commercial property developers’ cost.