More From Steve Sage
Mortgage REITs Rose among the Volatile Market
The week ending December 24, 2015, reaped positive results for all of the mortgage REITs. The VanEck Vectors ETF Trust (MORT) ended with returns of 6.1%.
REITs as an Investment Vehicle
REITs have become a popular investment tool to provide limited-time exposure to real estate for investors who cannot make significant investments.
Analyzing the Valuations of Weyerhaeuser and Plum Creek Timber
Analysts on Wall Street seem quite positive about the Weyerhaeuser and Plum Creek Timber securities. Eleven analysts are in support of buying the former.
Retail REITs Lead the Way with Top Performance in IYR
Retail REITs were the top performers of the iShares US Real Estate ETF (IYR) on January 5, 2016, with a return of 2.5%. The healthcare REIT subgroup ended the day with a positive return of 2.4%.
Turmoil in China’s Stock Exchange Wreaks Havoc on REITs
China’s stock exchange wreaked havoc on the global economy for the week ended January 8, 2016. The REITs market saw a severe downturn during the week.
Week In Review: REITs Plunge, Third Quarter SEC Filings
For the week ending December 11, the iShares US Real Estate ETF, the iShares Mortgage Real Estate Capped, and the SPDR S&P 500 ETF ended on a negative note.
RAIT Financial Trust Took a 40% Plunge for the Week
It’s important to know the factors that are the driving forces of any security in general. A few factors show the impact the on RAIT Financial Trust.
Positioning Your Portfolio in the Rising Rate Environment
Sectors with companies that usually have a high level of debt such as utilities and telecommunications are the most affected by rate hikes.
Both Positive and Negative Impacts by Oil Prices on REITs
Oil prices can play a crucial part in determining the direction of REITs. Let’s talk about a few of the positives and negatives affecting REITs here.
Black Week for REITs, Real Estate Services Performed the Worst
Though the week ended Friday, January 8, 2016, wasn’t fruitful for many investors, a few REITs provided some relief to investors in the volatile market.
Specialized REITs: Value Drivers
Specialized REITs and residential REITs within IYR generated positive returns of 0.2% and 9%, respectively, on a yearly basis.
The Timber Industry and Its Relationship with REITs
The timber industry provides employment to over 1.4 billion people and makes products worth more than $200 billion annually.
Specialized REITs: The Unsung Heroes
With the growing economy and global investment horizons, investments have shifted beyond the traditional options to specialized REITs.
An Overview of the Wireless Tower Industry
Industry profitability has increased mainly due to improved pricing of wireless service contracts and the strengthening of infrastructure investments.
Healthcare REITs Continue Their Strong Run
Healthcare REITs have shown resilience in the rising rate environment. REITs will likely be hurt more in this environment since they have to incur higher expenses.
Impact of Consumer Spending on Retail REITs
Consumer spending and the overall health of the economy are the main drivers of retail REITs. The Fed’s decision to increase the interest rate could have a positive or negative impact on spending.
Hotel and Mortgage REITs Took a Plunge
Within the iShares US Real Estate ETF (IYR), mortgage and hotel and resort REITs were the worst-performing subgroups of the week.
Analyzing REITs Using the Short Interest Ratio
The industry sentiment is divided when it comes to evaluating the impact of the short interest ratio. Many consider it to be an indicator of bearish sentiment.
Healthcare REITs Saw Steady Growth Last Week
Healthcare REITs ended the week of December 31, 2015, as the most valuable subgroup within the iShares US Real Estate ETF (IYR).
The Outlook for Industrial REITs
Industrial REITs are expected to pick up steam as the US economic outlook gradually improves—demand for industrial properties is tied to overall economic growth.
The Role of Industrial REITs
Industrial properties suffered a major setback during the 2008 financial crisis. The vacancy rate for industrial properties increased, and the need for new industrial buildings was close to zero.
Mortgage Applications Rose despite Rate Hike
The Federal Reserve’s decision to increase the federal funds rate by 0.25% on December 16, 2015, had minimal impact on the mortgage volume.
Why Did REITs Rise as the Fed Increased the Rates?
Residential REITs derive their revenue from rentals and apartment sales. Rising rates could increase the borrowing cost for investors. The asset’s value falls.
Resource Capital Rallied 26.8% with Dividend Announcement
For the week ended December 18, the iShares Mortgage Real Estate Capped ETF returned 4%. Resource Capital and New Residential Investment were top performers.
Market Blossoms after the Fed Hikes the Interest Rates
After months of speculation regarding the much-anticipated interest rate hike, the FOMC meeting on December 16, 2015, finally ended investors’ wait.
What Does the Future Hold for Mortgage REITs?
US markets and investors might have taken the Fed’s interest rate hike positively, but it’s important to explore the future outlook of mortgage REITs.
The Rate Hike’s History and Its Impact on Mortgage REITs
Mortgage REITs like New Residential Investment, Chimera Investment, and American Capital Agency will witness the impact of a rate hike for the first time.
Real Estate Investment Trusts Underperformed the Broad Market
For the week ending November 20, 2015, the iShares US Real Estate ETF and iShares Mortgage Real Estate Capped underperformed the SPDR S&P 500 ETF Trust.
Analyzing Plum Creek Timber’s Merger with Weyerhaeuser
Plum Creek Timber (PCL) generated returns of 14.6% last week, backed by news of a merger with Weyerhaeuser (WY). WY bought PCL for $8.44 billion.
How Bond Holders Could Handle Interest Rate Risk
The prime reason for the increasing popularity of unrestricted bond funds is the low interest rate environment.