iShares US Real Estate
Goldman Sachs: Investors Should Get Defensive in 2019
Goldman Sachs’ (GS) chief equity strategist, David Kostin, expects the S&P 500 (SPY) to reach 3,000 by the end of 2019.
Goldman Sachs’ Take on Uncertain Stock Market: Get Defensive
Last month, Goldman Sachs predicted the S&P 500 (SPY) will reach 3,000 by the end of 2019.
How American Tower’s Valuation Stacks Up against Its Peers’
Based on its trailing-12-month price-to-AFFO ratio, American Tower is trading at a discount to its main competitor Crown Castle International.
Current Economic Tailwinds Are Powering Real Assets
The shifting of the global policy stance from monetary stimulus to fiscal stimulus could benefit real assets.
Real Asset Companies Are on the Cusp of an Earnings Revival
Despite rising concerns about a trade war, the IMF maintained its growth forecasts for the global economy for 2018.
Shifting Economic Winds Could Be Good for Real Assets
Solid economic growth, supply bottlenecks, and rising commodity prices have pushed up inflation in the United States.
Why Existing Home Sales Have Been on a Continuous Slide
The United States National Association of Realtors (or NAR) releases a monthly report on the existing home sales (ITB) market.
Will the Rollback of Dodd-Frank Help the Real Estate Sector?
In a continued effort to deregulate the economy, President Donald Trump signed the Economic Growth, Regulatory Relief, and Consumer Protection Act.
Why the Recent REIT Rebound Could Stretch a Little Further
The real estate sector (VNQ) has been lagging in performance in 2018. It’s seen a year-to-date loss of 6%.
Why Existing Home Sales Continued Their Decline in April
The US National Association of Realtors (or NAR) releases a monthly report on the existing home sales (ITB) market.
Here Are March’s Trends in Existing Home Sales
According to the NAR’s April 2018 report, existing home sales rose 1.1% to a seasonally adjusted annual rate of 5.6 million homes in March.
Bernstein: ‘Inflation Is the Enemy of Income’
Billionaire investor Richard Bernstein pointed out that the ten-year US Treasury yield started rising in June 2016.
Why Declining Existing Home Sales Are Considered a Positive Sign
The United States National Association of Realtors (or NAR) releases a monthly report on existing home sales (ITB).
Analyzing the Fall in December’s Existing Home Sales
According to the January report from NAR, existing home sales decreased 3.6% to a seasonally adjusted annual rate of 5.57 million homes in December.
Crude Oil Futures Continued to Rally, Wall Street Fell
February WTI crude oil futures contracts also rose 1% to $63.57 per barrel on January 10, 2018. It’s the highest settlement since December 2014.
Will Crude Oil Futures and S&P 500 Move in the Same Direction?
February US crude oil (UWT) (USL) futures contracts rose 0.5% to $61.73 per barrel on January 8. Prices are near the highest level since December 2014.
These Were Bill Ackman’s Largest Sector Holdings in 3Q17
Pershing Square Capital Management’s top sectors in 3Q17 were consumer discretionary (XLY), information technology (XLK), consumer staples (XLP), real estate (IYR), and materials (XLB).
Energy & Utilities
Crude Oil Futures and Wall Street Extends the Rally
US crude oil futures contracts for February delivery also rose 0.6% to $62.01 per barrel on January 4, 2018—the highest settlement since December 2014.
Existing Home Sales: Strongest Pace in 11 Years
According to the latest report from NAR, existing home sales rose 5.6% to a seasonally adjusted annual rate of 5.81 million homes in November.
Why a Rise in October Building Permits Is a Good Sign for the US Economy
In October 2017, the number of building permits totaled ~1.3 million permits, a sizeable increase from the September reading of ~1.2 million permits.
What’s behind CapitaLand’s Economic Moat
CapitaLand Commercial Trust (CCT SP) is a Singapore based real estate investment trust (REIT) that owns 10 office properties in the city’s central business district (CBD).
How Ventas’s Dividend Yield Compares
Revenue and earnings Ventas (VTR) is a major REIT in the United States and Canada. The company’s revenue growth slowed from 18% in 2015 to just 5% in 2016. The growth was driven by all of its segments, through resident fees and services, office building and other service revenue, and income from loans and investments, […]
What Analysts Think about the Top 3 Wireless REITs after 2Q17
The wireless tower owners’ expected performance in fiscal 2017 is reflected in the analysts’ ratings for the companies.
Company & Industry Overviews
How the Top 3 Wireless Tower REITs Performed in 2Q17
In this series, we’ll analyze the 2Q17 results of American Tower (AMT), SBAC Communications (SBAC), and Crown Castle International (CCI).
Why Marc Faber Thinks It’s Time to Diversify Your Portfolio
Marc Faber is concerned about how the global economy (ACWI) (VTI) will perform in the next five years.
MLPs Are Still a Top Income Investment Option
Yields for MLPs have come down in recent quarters, driven by the slight recovery of investor confidence in the energy sector.
Company & Industry Overviews
The Real Estate Reaction: Gauging the Impact of the Fed’s Rate Hikes
The rising interest rate is expected to boost the economy in the long run, but it could severely impact sectors like real estate.
Company & Industry Overviews
How Would an Interest Rate Hike Affect Real Estate Valuations?
The real estate sector’s (VNQ) (IYR) performance was subdued in 2016 due to its supply-demand dynamics.
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 with generalized inflation. However, other factors may mitigate the impact of inflationary forces. Some of these additional factors may include real estate supply and demand […]
Why REITs Tend to Offer High Dividend Yield
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 volatility, this income could act as a buffer and may mitigate negative price movements. Historically, the Dow Jones U.S. Select REIT Index has produced higher […]
The REIT Advantage: High Return, Low Correlation
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 Dow Jones Global Ex-U.S. Select RESI has had an average total return close to 9%, while the Dow Jones U.S. Select REIT Index has had […]
REITs Explained: Qualifications and Types of REITs
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 to shareholders in the form of dividends. In the U.S., a REIT must meet the following four requirements. The REIT must distribute at least 90% […]
The Evolution of the REIT
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 revolution led to a demand for real estate investment. The first REIT was set up in 1961, but it took several decades before REITs were […]
REITs 101: Understanding this Vehicle
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 to real estate, which is generally an illiquid asset class, without sacrificing the liquidity benefits of listed equities. They also typically offer higher yields than […]
Why Look to the REIT Sector for Opportunities?
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.
Why REITs Tend to Offer High Dividend Yields
REITs (IYR)(VNQ) are known for their high dividend yields, outclassing almost all other broad market indices.
The REIT Advantage: High Returns, Low Correlation
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 Evolution of REITs
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.
REIT Explained: Qualifications and Types of REITs
Let’s talk about the two main types of REITs (ICF)—equity REITs and mortgage REITs.
REITs 101: Understanding this Investment Vehicle
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.
Company & Industry Overviews
Danaher’s Journey from Corporate Raider to Corporate Statesman
Danaher (DHR) was the brainchild of brothers Steven and Mitchell Rales. It was incorporated as a holding company in 1984.
Why Schlifske Prefers Mortgage REITs and High Yield Debt Instruments
John Schlifske believes the low growth environment will continue in the short term. In this environment, he thinks that the equity market may not yield high returns.
General Growth Properties: Less Borrowing Bodes Well
To lower its effective borrowing costs and extend its maturity profile, GGP was active in unsecured and secured credit markets in fiscal 2015.
Equity Residential’s Management Paints a Bullish Picture for 2016
Equity Residential upwardly revised its guidance for its 2016 same-store operating performance, normalized FFO per share, and some of its transactions.
EQR Sees a Marginal Fall in Borrowing Costs in 4Q15
In 2015, EQR was active in both the unsecured and secured credit markets to lower its effective borrowing costs and extend its maturity profile.
Simon’s Valuation Is Unlikely to Expand Further
Among the 25 analysts following Simon Property stock, 20 have assigned a “buy” rating. The company received no “sell” ratings from any analysts while five brokerages have assigned a “hold” rating.
Simon’s 4Q15 Earnings: Borrowing Cost Should Remain at Same Level
The total debt of Simon Property Group (SPG) increased from $20.8 billion as of the end of 4Q14 to $22.5 billion as of the end of 4Q15.
Pending Home Sales Rose Annually, but They’re Falling Monthly
According to the National Association of Realtors, US pending home sales rose marginally at 0.1% in December versus a 1.1% fall in November 2015.
Mortgage Applications Rose, Volatility Continued in January
According to the MBA (Mortgage Bankers Association) survey, mortgage applications rose by 8.8% for the week ending January 22.
House Prices Continued to Rise in November
With increasing home prices, builders might increase the home supply. Due to lower mortgage rates, more customers could be attracted to the housing sector.