SPDR® Dow Jones REIT ETF
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.
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.
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 […]
Alexandria: Flying High with Higher Occupancy Levels
Occupancy rate is the number of units that are rented out to residents by a company in proportion to the total number of units in the building or community.
Is Simon Property’s Premium Valuation Justified?
Simon Property Group (SPG) can be best evaluated by its price-to-FFO (price-to-funds from operations) multiple.
Simon Property to Gain from Improving Economy, Trump’s Policies
The favorable consumer environment should boost the hopes of retailers, the benefits of which are likely to pass on to operators such as Simon Property Group.
What Investors Should Consider before Investing in REITs
A REIT (or real estate investment trust) is a company that owns and manages income-producing real estate.
Welltower’s Dividend Yield Falls despite Higher Dividend
Revenue and earnings In this part, we’ll look at Welltower (HCN), a US healthcare REIT. Welltower’s revenue growth slowed from 15% in 2015 to 11% in 2016. The growth was driven by all of its segments, through rental income, resident fees and services, interest income, and other income. Its operating costs and other expenses (including interest expenses) […]
What Industrial REITs Analysts Think after 2Q17
Prologis (PLD) has been assigned a target price of $62.75, which is 0.8% higher than its current price level.
How Capital Deployment Strategies Helped Boost Industrial REIT Sales in 2Q17
Industrial REITs (real estate investment trusts) tend to carry on many development and redevelopment projects simultaneously in order to maintain leadership.
Industrial REITs and the Year Ahead
Industrial REITs (real estate investment trusts) appear to have a bright future backed by a growing economy and industrial growth.
Inside 3 Key Industrial REITs in 2Q17: Top- and Bottom-Line Results
Industrial REITs (real estate investment trusts) reported robust top-line and bottom-line results in 2Q17 backed by industrial growth,
Top 3 Industrial REITs: An Overview of the 2Q17 Results
Industrial REITs (real estate investment trusts) are currently experiencing a boom, and many investors and analysts anticipate future growth.
How AvalonBay Compares after 2Q17
Price-to-funds from operations multiple AvalonBay Communities’ (AVB) performance in 2Q17 can be best evaluated by looking at its price-to-FFO (funds from operations) multiple. The multiple, widely used for REITs, gives an idea of how much an investor pays for a particular stock per unit of its profit. The multiple, which has the same implications as the price-to-earnings […]
Financing Activities Leverage AvalonBay’s Balance Sheet in 2Q17
Performance in 2Q17 AvalonBay Communities (AVB) has undertaken several development, redevelopment, and expansion projects to maintain its share in the market. It invested $400 million in new developments during the quarter. REITs such as UDR (UDR), Essex Property Trust (ESS), and Equity Residential (EQR) fund these activities with the help of debt and equity. Therefore, […]
Income Rises in 2Q17, AvalonBay Expects Higher Expenses
Income generated in 2Q17 AvalonBay Communities (AVB) reported NOI (net operating income) of $367.1 million, compared with $339.6 million in 2Q16. The Northern California region reported the highest NOI of $64.6 million, followed by the New York metropolitan area, which reported NOI of $61.5 million. Development and redevelopment communities reported NOI growth of $40.1 million, […]
How Geography Affected AvalonBay’s 2Q17 Results
Wide geographical diversity AvalonBay Communities (AVB) has its assets well placed in high-demand Class A cities. These cities have soaring job growth, a high barrier to entry for competitors, and proximity to premium infrastructure. REIT peers UDR (UDR), Equity Residential (EQR), and Essex Property Trust (ESS) are repositioning their properties to Class A cities and […]
AvalonBay Maintains Profit with Strategic Capital Deployment
Demographic shift American demographics are shifting towards Class A cities with high-income growth and demand for residential apartments. These cities offer job prospects and proximity to offices, schools, and other necessities for premium social living. Although these cities also have high barriers to entry, more residential apartment owners are repositioning their properties in these areas. […]
AvalonBay Revenue Climbs in 2Q17, Backed by Rent Growth
Robust 2Q17 driven by rent growth AvalonBay Communities’ (AVB) total revenue of $530.5 million marginally surpassed Wall Street estimates by 0.3%. However, revenue rose by almost 6% from the year prior. Upbeat top-line growth reflected growth in development communities and stabilized operating communities. Same-store revenue rose 2.5% year-over-year. Including revenue from redeveloped communities, same-store revenue […]
What Lies Ahead for AvalonBay
Robust 2Q17 results AvalonBay Communities’ (AVB) top and bottom lines exceeded expectations, backed by higher net operating income growth of 8.1%. Factors affecting profit during 2Q17 Higher occupancy and rent growth in development communities and stabilized operating communities led to upbeat results during the quarter. Higher funds from operations expected for 3Q17 AvalonBay expects […]
Where AvalonBay Stands after Its 2Q17 Earnings Release
AvalonBay Communities (AVB) reported core FFO (funds from operations) of $2.09 per share, in line with Wall Street estimates.
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 […]
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 […]
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.
How Would Negative Interest Rates Impact REITs?
A fall in interest rates makes REITs more attractive dividend-yielding investments compared to bonds. This is because REITs have been traditionally viewed as dividend-yielding investments.
Higher Demand Likely to Drive BioMed Realty’s Occupancy in 2016
The improving economy, favorable business fundamentals, and a focus on life science companies have led to strong demand for BioMed Realty’s properties.
BioMed Realty’s Other Strategy: Generating Sustainable Growth
BioMed Realty’s growth strategy aims to meet demands for specialized office and laboratory space by leveraging its local knowledge and management expertise.
BioMed Realty’s Strategy: Adding Value through Property Development and Redevelopment
BioMed Realty focuses on value creation through development and redevelopment of old and new properties, aiming to develop space on all land it acquires.
An Overview of BioMed Realty’s Specialized Property Portfolio
BioMed Realty’s total property portfolio witnessed increased from 12.2 million square feet in 2010 to 17.5 million square feet in 2014.
Alexandria: Earnings Margin to Remain at an Elevated Level
Alexandria (ARE) recorded an EBITDA margin of 62.5% in 2014, the lowest earnings margin recorded by the company in the last five years.
Alexandria’s Strategy to Generate Sustainable Growth
Alexandria’s strategy is to acquire, develop, and redevelop properties in target cluster markets.
An Overview of Alexandria’s Property Portfolio
Alexandria Real Estate Equities’ total property portfolio has witnessed healthy growth during the past five years.
Kilroy Realty: Standing Tall with Highest Earnings Margin
Kilroy Realty’s earnings margin is much higher than the industry average of 52.3% and those recorded by its peers.
What Is Kilroy Realty’s Value Creation Strategy?
Kilroy Realty expects its strategy to generate higher rental income and higher occupancy levels in the years to come.
A Look at Kilroy Realty’s Property Portfolio
The increase in Kilroy Realty’s office property portfolio was due to the acquisition of properties to create long-term value.
Boston Properties’ Cost Structure, EBITDA Margin, and Other Must-Knows
Boston Properties (BXP) consolidated costs were $1.6 billion for fiscal 2014—up by 12.1% over 2013—on the heels of a 25.7% total cost rise in 2013.
MAA’s EBITDA Margin: Lower than Industry Average
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.
Investing in Apartment Investment & Management Company
Apartment Investment & Management Company (or AIMCO) (AIV) is a self-administered, self-managed REIT. It’s one of the largest owners and operators of apartment communities in the United States.
Why CBL’s Managemnet Was Optimisitc in 3Q15 Earnings Call
CBL & Associates’ management scheduled a conference call to discuss its 3Q15 earnings. The company’s FFO per share was below analyst estimates.
Equity Residential Plans to Sell Apartment Units to Starwood Capital
On October 26, Equity Residential announced its plans to sell 72 properties in five markets to Starwood Capital. This includes 23,262 apartment units.
Macerich’s Highest EV-to-EBITDA Multiple Compared to Peers
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.
A Look Into CBL & Associates’ Retail Mall Business
CBL & Associates’ retail mall business comprises four main property portfolios—shopping malls, associated centers, community centers, and office buildings.
CBL & Associates Properties: A Must-Know Company Overview
CBL & Associates Properties is the fifth-largest retail mall REIT (real estate investment trust) in the United States.
What Was Equity Residential’s Cost Structure?
Equity Residential’s (EQR) consolidated cost was $1.69 billion for fiscal 2014—down by 9.70% over 2013. This came after a 52% rise in the total cost in 2013.
The Rise in Commercial Property Rent Is Beneficial to REITs
Rent increased 0.4% for industrial properties in 2Q15, which was unchanged from the previous quarter, but lower than the 0.5% 2Q14 growth.
General Growth Properties’ Top Tenants in Retail
The malls in GGP’s portfolio receive a smaller percentage of their operating income from anchor tenants than from specialty retailers who lease space.