Peter Barnes

Boston Properties is a Boston-based REIT that completed its initial public offering in 1997 and is now the largest publicly traded office REIT in the US.

ETFs present another investment avenue. Apart from pure homebuilder ETFs, there are many other ETFs that offer exposure to homebuilders.

Simon Property is the only REIT in the S&P 100 Index and has heavy asset concentration on the US east coast and in the central US.

Zoning is the way that governments supervise land development and the kinds of uses each individual property may be directed toward for the public interest.

Although the ETF industry posted stellar growth, no one thought of issuing an ETF dedicated to ETF providers. The gap was filled by TETF in April 2017.

General Growth Properties has a market cap of $22.1 billion, is part of S&P 500 index, and sees allocation in the major REIT-specific ETFs like ICF.

D.R. Horton sees allocation in major homebuilding sector-specific ETFs like the iShares Dow Jones US Home Construction Index Fund (ITB).

Shopping center REITs mainly own and operate shopping centers that are smaller than retail malls. They’re mainly driven by higher consumer spending.

Mutual fund ownership of equities is at the lowest level in ~13 years, while ETFs (SPY) (IVV) are gradually increasing their share in the stock market.

Although ETF (VTV) ownership increased substantially during the last 20 years, it still isn’t high enough to meaningfully impact stock prices.

In the previous articles of this series, we discussed population and economic growth as the two major drivers leading to a rise in emerging markets (EMQQ).

In recent years, emerging markets have experienced rapid economic growth compared to developed markets.

Achieving higher returns amid the rising market volatility, record-low interest rates, and global uncertainties is a huge challenge for investors.

What products single out specifically the share buyback companies?

Historically, we have seen Buyback does perform very well across all interest rate environments. Looking at the data back to the mid-80s, it does well.

On the commodities side, we have broad-based commodity benchmark, the Nasdaq Commodity Index, aptly named.

Emerging market economies (EEM) have followed diverse trends that are likely to drive global growth in the coming decades.

Term life (IYF) is most beneficial to young adults who are relatively free from any financial responsibilities.

Term life insurance provides guaranteed benefits to beneficiaries for a specific period of time in case of the sudden death of the insured person.

Life insurance (PRU) (MET) policies come in various forms that cater to people in different age groups and with different financial goals.

Berkshire Hathaway has reported an underwriting profit for 13 straight years, showing a pre-tax gain of $26.2 billion for the period. Buffett states that this was due to Berkshire’s insurance manager’s daily focus on disciplined risk evaluation.

Zoning restricts the freedom of property holders and REITs to use land however they want, given their specific development and investment interests.

Zoning protects existing property values by preventing incompatible uses of a property. It also protects residential properties from commercial development.

The Consumer Financial Protection Bureau was established to protect consumers’ interests by implementing federal consumer financial laws.

As more and more people seek apartments, rent has also been rising rapidly. In fact, rent has been rising faster than the overall cost of living in the US.

Housing affordability took a beating in July 2015 after reaching its high in January 2013. The higher ratio of the home affordability index signifies relatively higher home affordability to buyers.

BioMed Realty is now the fifth-largest publicly traded office REIT in the United States and is a part of the S&P 400 Index.

Highwoods Properties (HIW) is a fully integrated, self-administered, and self-managed REIT.

Kilroy Realty Corporation (KRC) was founded in 1996 by John B. Kilroy Jr.

Post Properties’ EV-to-EBITDA ratio is in line with its historical valuation, ranging between 12.2x–25.5x, with a current EV-to-EBITDA ratio of ~21.7x.

Post Properties’ TTM price-to-FFO multiple is in line with its historical valuation at around 18.9x.

Boston Properties concentrates on some of the highest-growth markets in the US, including Boston, New York, San Francisco, and Washington, D.C.

Headquartered in Atlanta, Georgia, Post Properties is structured as an REIT and completed its initial public offering in 1993.

MAA’s EBITDA margin is lower than the industry average of 57.7%, as well as the margins reported by some of the company’s peers.

American Campus Communities (ACC) faces competition from university-owned on-campus student housing, off-campus student housing, and traditional multifamily housing units.

Camden Property Trust (CPT) is the fifth largest apartment REIT in the United States. At the end of fiscal 2014, it had 181 multifamily properties comprised of 63,163 apartment homes.

Over the past eight years, Macerich’s EV-to-EBITDA has ranged between 11.9x–27.2x, with a current EV-to-EBITDA multiple of around 21.8x.

CBL’s (CBL) long-term strategy is to maximize shareholder returns while maintaining prudent risk profile.

A close look at Essex Property Trust’s trailing-12-month price-to-FFO multiple shows that it’s in line with its historical valuation.

Macerich is a self-managed REIT headquartered in Santa Monica, California. The company was founded in New York in 1964.

The most common way to calculate the relative value of a REIT like Equity Residential (EQR) is the price-to-FFO (funds from operations) multiple.

AvalonBay Communities’ brands focus on consumer preference as well as location and price. They help differentiate its apartments from the competition.

The distribution of properties in attractive US coastal markets reflects AvalonBay Communities’ geographic diversification strategy.

AvalonBay Communities is a REIT focused on developing, redeveloping, acquiring, and managing high-quality apartment communities in high barrier-to-entry US markets.

Average capitalization rates in 2Q15 fell to 7.5% across all the property types compared to 8.35% in 2Q14.

Equity Residential was formed as a REIT. It became a publicly traded company in 1993. It’s part of the S&P 500 Index. It employs about 3,500 people.

Rent increased 0.4% for industrial properties in 2Q15, which was unchanged from the previous quarter, but lower than the 0.5% 2Q14 growth.

The malls in GGP’s portfolio receive a smaller percentage of their operating income from anchor tenants than from specialty retailers who lease space.

Toll Brothers’ use of land option agreements reduces financial risks associated with long-term land holdings. The land acquisition strategy of other homebuilders also involves option contracts.

Toll Brothers (TOL) has a very geographically diverse homebuilding operation in the United States. The company has a presence in 50 markets, spanning 19 states as well as the District of Columbia.