Vanguard REIT ETF
Latest Vanguard REIT ETF News and Updates
The Great American Deleveraging: Fact or Myth?
The great American deleveraging has largely been limited to the financial sector (XLF) (IYF). Non-financial debt is still much higher than historical averages.
Why the Gloomy GDP Estimate Is Not Cause for Panic
There are several reasons why the gloomy GDP estimate is not cause for panic. The slowdown in GDP growth seems to be a temporary setback.
Major central banks are now diverging in their monetary policies
Major central banks are now diverging in their monetary policies, a dynamic we saw vividly on display last week with the Federal Reserve ending its quantitative easing (or QE) program, while Japan expanded its version of QE.
How Equity Residential Improved Its Balance Sheet in 2Q17
During 2Q17, Equity Residential (EQR) reported higher-than-expected top-line and bottom-line results backed by robust rent growth and occupancy levels.
GGP and Other Retail REITs Struggle to Exist in Digital Era
During 1Q17, General Growth Properties’ (GGP) occupancy rate (same-store leased percentage) fell to 95.9% from 96.6% in 1Q16.
ARCP’s Cole Capital acquisition ended due to accounting issue
In November, RCS Capital terminated a $700 million deal to acquire Cole Capital from ARCP.
How Does GGP Manage Its Balance Sheet?
GGP reached a debt-to-equity ratio 2.2x in 2014, its highest in the last five years.
Understanding Equity Residential’s Business Segments
In 1Q17, Southern California comprised 25% of Equity Residential’s (EQR) total revenues, 19% of its total revenues came from Washington, D.C., and New York comprised 21% of its total revenues.
Why rising asset prices are driving consumer confidence higher
The CCI is one of the oldest consumer surveys, originally started as a mail-in survey in 1967. It asks respondents whether certain conditions are positive, negative, or neutral.
Looking for Dividends? Stay Away from the Utilities and REITs
What makes the utilities unattractive is the fact that interest rates will likely be rising soon. The utilities require a huge amount of infrastructure.
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.
Healthcare Trust of America’s Balance Sheet
In 2017, Healthcare Trust of America (HTA) had total leverage of 29.9%.
Could the Plum Creek Timber-Weyerhaeuser Merger Get Competitive?
In the Plum Creek Timber-Weyerhaeuser merger, Weyerhaeuser is paying about 7.4x trailing-12-month revenues and 25.4x trailing-12-month EBITDA.
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.
Your Best Bets For A Good Inflation Hedge Right Now
Although inflation is low, it’s a good idea to have a small amount of inflation hedge in your portfolio. A small inflation hedge adds diversification.
Why Dividend Stocks Have Underperformed This Year
Dividend stocks have underperformed this year so far. The dividend yield measures dividends payed by a company in the last 12 months relative to its share price.
The must-know outlook for equities and bonds in 2014
The Fed, in its latest announcement, has further reduced its bond buying program to $55 billion a month, signalling that the improvement in the economy is on track.
Simon Property Group’s Key Business Segments
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.
How Zoning Regulations Impact City Development
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.
Municipal Bonds Help You Care For Communities
Municipal bond issuers are state-wide and local. They typically use the funds they accumulate through issuing bonds for infrastructure projects.
Why you should invest in some of the 1,500 ETFs in the US
In this series, we’ll introduce you to the concept of exchange-traded funds (or ETFs). You’ll find out about the types of ETFs and how they can help your portfolio.
The Benefits of Real Asset Investing
In essence one of the things we have accomplished with these three products is to reduce the volatility inherent in all markets, and in particular very volatile markets like the real asset sectors.
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.
Simon Property Group faces competition from online retailers
Simon Property Group is by far the biggest shopping center REIT in the U.S., with a market capitalization of $53 billion. The next biggest REITs are less than half Simon’s size.
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 […]
Residential Sector: What Investors Should Know
The residential REIT sector mainly includes apartments and manufactured housing. It’s one of the largest segments in the REIT industry.
Shopping Center REITs Are Sensitive to Economic Cycles
Shopping center REITs mainly own and operate shopping centers that are smaller than retail malls. They’re mainly driven by higher consumer spending.
The Fed ends its asset purchase program at the October FOMC meeting
In December 2008, when the U.S. economy entered its dreadful recessionary phase, the Federal Reserve (or Fed) reduced the federal funds rate to nearly zero in order to stimulate household and business spending and support economic recovery.
Must-know: Does e-commerce mean the end of malls?
General Growth CEO Sandeep Mathrani spent a lot of time on the conference call discussing the impact of e-commerce on his company (and mall REITs in general).
Innovation and Foreign Investment Drive Welltower’s Growth
Welltower (HCN) has successfully set itself on a growth trajectory backed by strategic initiatives, aiding its steady top line growth.
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%.
How Is Equity Residential Rewarding Its Investors?
EQR announced a quarterly dividend of $0.50. The current dividend yield stands at 3.2%, and it has a payout ratio of 135.2% for 3Q17.
How Rising Interest Rates Could Affect Equity Residential
The Fed indicated that it could implement two more rate hikes in 2017. The market speculates one of the rate hikes could occur in June, and the other one is expected to occur around December 2017.
Why Equity Residential’s Top Line Soared in 2Q17
Equity Residential’s (EQR) top line in 2Q17 surpassed both the year-ago results as well as management’s expectations backed by rent growth.
Why Elliott Management Might Be in Trouble
Last week, Elliott Management filed its 13F for the first quarter of 2020. In the last quarter, the hedge fund’s AUM was worth around $73.15 billion.
Does Falling Gas Mean A Merry Christmas For Retailers?
At the end of the day, consumers don’t start spending after recessions because they want to. They do it because they have to.
How close is the FOMC to achieving its dual mandate?
We’ve talked about the dual mandate and factors constraining the Federal Reserve from achieving this mandate. Let’s now assess how close the Fed has come to achieving its macroeconomic objectives.
The implications of higher yields at the 10-year Treasury auction
The ten-year Treasury (IEF) note auction is of great interest to stock and bond (BND) market participants. Ten-year Treasury yields are benchmarks for many interest rates, including mortgages (IYR)(VNQ) and equity risk premiums (QQQ).
Why income stocks may be risky
There has been a shift to real estate (VNQ), utilities (XLU), and consumer staple (XLP) stocks in 2014 because investors are looking for equities with bond like characteristics that give them a higher income.
Must-know: Implications of inflation and the necessity of TIPS
In order to eliminate inflation risk for investors, the U.S. Treasury introduced TIPS in 1997—TIPS protect the value of debt securities from eroding due to inflation.
The “Great Deleveraging” that never happened: The US debt problem
For several years, media headlines have been filled with references to a mythical “deleveraging,” or a reduction in the level of U.S. debt. In reality, U.S. non-financial debt has increased.
Why Minneapolis Fed President Kocherlakota disagrees with the FOMC
Narayana Kocherlakota is an American economist and the 12th and current president of the Federal Reserve Bank of Minneapolis.
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.
Equinix Continues to Enhance Shareholders’ Wealth
On August 8, Equinix (EQIX) declared a regular quarterly cash dividend of $2.28 per share for the third quarter.
Are Real Assets in the Goldilocks Zone?
According to the IMF (International Monetary Fund), the world economy grew 3.8% in 2017, the fastest since 2011.
Equinix to Continue Rewarding Shareholders with Dividend Payments
In 2015, 2016 and 2017, Equinix paid regular cash dividend per share of $6.76, $7.00 and $8.00, respectively.
Where Equity Residential’s Expenses Are Heading
Equity Residential’s (EQR) second-quarter operating expenses increased at a higher rate than the growth rate of same-store revenues.
RAAX ETF: Capturing Real Benefits of Real Assets
RAAX’s allocation process provides exposure to segments with better returns profiles while managing overall portfolio risk.
RAAX Fund Uses Rules-based Approach for Optimum Allocation
VanEck The VanEck Vectors Real Asset Allocation ETF (RAAX) uses a data-driven, rules-based process that leverages over 50 indicators (technical, macroeconomic and fundamental, commodity price, and sentiment) to allocate across 12 individual real asset segments in five broad real asset sectors. These objective indicators identify the segments with positive expected returns. Then, using correlation and […]
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.
How Forex Volatility Could Affect American Tower’s Operations
While the US dollar was expected to gain from the growing economy and the rising interest rates, the recent tax cuts have flipped the scenario.
A Look into American Tower’s Major Revenue Drivers
American Tower (AMT) owns and operates over 160,000 communications sites around the world.
RAAX ETF Aims to Generate Long-term Total Returns
Now that we understand why the macro environment is supportive, why don’t you tell us a little bit about the investment process?
RAAX: Key Focus Areas for Long-Term Considerations
Now that we understand the investment process overall, can you give us a few example sectors and how they work?
Strategic Allocation to Real Assets Could Boost Portfolio Returns
Building on a legacy in the real asset space, VanEck is soon to debut a new fund, ticker RAAX.
Non-Manufacturing Sector Grew for 98th Consecutive Month
In March, the service sector continued to grow but at a slower pace.
How Analysts View HCP Inc. in Fiscal 2018
Analysts gave HCP a mean price target of $26.59, implying a significant ~17.0% rise from its current level of $22.68.
HCP’s Performance in Comparison to Its Peers
HCP has a $2.0 billion credit facility with maturity in 2021, and the majority of its debt matures after 2019.
HCP and Its Falling Shareholder Returns
HCP has indicated that the recently enacted Tax Cut and Jobs Act could materially and adversely affect the company and its stockholders.
HCP’s Portfolio Riding on Developments, Acquisitions, and More
In 4Q17, HCP recorded an $84.0 million impairment on the debt investment and reduced the value to $105.0 million.
HCP Inc.’s Expanding Medical Office Portfolio
Rental revenues for HCP increased ~3.0% from $392.0 million in 2016 to $400.0 million in 2017.
Chart in Focus: HCP’s Life Science Portfolio
Life Science is an 8.0 million square foot portfolio and represents ~25.0% of HCP’s NOI.
Healthcare Trust of America Maintains Its ‘Buy’ Rating in 2018
Analysts gave HTA a mean price target of $33.38, implying a significant ~26.0% rise from its current level of $26.30.
HCP Beats Funds from Operations, Misses on Revenues in 4Q17
For 2017, HCP’s funds from operation stood at $1.95 per share, and its same-store cash NOI growth was 3.4%.
Healthcare Trust of America’s Performance in Comparison to Its Peers
HTA has earnings per share of $0.33 and a PE (price-to-earnings) ratio of ~111.0x.
HCP’s Cautious View for Its Senior Housing Portfolio in 2018
HCP Inc. has a diversified senior housing portfolio, which has a balanced mix of triple net and SHOP (senior housing operating portfolio).
How Healthcare Trust of America Rewards Its Investors
HTA paid dividends of $1.17 in 2015, $1.19 in 2016, and $1.21 in 2017.
Healthcare Trust of America’s Strategic Rationale
HTA has 3.4% combined pro forma same-store NOI growth, and its development assets are currently 86.0% pre-leased.
HTA’s Portfolio Riding on Investments, Acquisitions, and More
Healthcare Trust of America (HTA) completed investments of $2.7 billion in 2017, and 90% of these properties are in key strategic markets.
Healthcare Trust of America: Key Macro Drivers
In 2015, US healthcare spending grew 5.8%, and health spending accounted for 17.8% of the nation’s GDP.
Healthcare Trust of America and Its Growth Story
Healthcare Trust of America (HTA) has centers in more than 20 key markets in the US, covering 24 million square feet.
How Welltower Is Rewarding Its Shareholders
Welltower (HCN) announced a dividend of $0.87 per share for 3Q17 from the previous guidance $0.86 in 3Q16. The dividend yield stands at ~5.6%.
Welltower’s Efficiently Managed Debt and Balance Sheet
Welltower (HCN) has kept its balance sheet in good shape. It has a cash balance of $236 million and $2.6 billion in credit line availability.
Welltower’s 3Q17 Performance and Outlook
Welltower (HCN) increased its SSNOI (same-store net operating income) to 2.5%–3% from 2.25%–3%. This slight increase is due to strong seniors’ housing operating performance.
How Does Equity Residential’s Balance Sheet Look?
EQR reported higher revenues backed by strong growth in rental income.
How Tax Plan, Interest Rates, and Other Factors Are Affecting EQR
Since REITs are required to pay 90% of their income as dividends, the tax cuts might reduce their advantage in comparison to other corporations.
Equity Residential’s Strategic Properties Give It an Edge
Equity Residential (EQR) has properties in Southern California, San Francisco, New York, Washington DC, Boston, and Seattle.
What Do Wall Street Analysts Think of SPG?
Analysts gave SPG a mean price target of $188.10, implying an ~16.0% rise from its current level of $162.26.
Key Drivers Contributing to SPG’s Evolution
Simon Property Group’s capital expenditure increased ~15.0% in 2Q17 while it decreased ~1.2% in 3Q17.
Simon Property Group: Altering Strategies to Target Growth in 2018
Simon Property Group (SPG) is expected to pay a dividend of $7.15 per share in 2017, an increase of 10.0%. Its portfolio valuation rose 3.9% for 3Q17 on a year-over-year basis.
This ISM Index Hit a Lifetime High in October
For October, service sector activity rose at a pace not seen since the inception of the report. The non-manufacturing index reached a lifetime high of 60.1.
Why HCP’s Dividend Yield Is Moving South
Revenue and earnings HCP (HCP) is a healthcare REIT specializing in US healthcare property investment. In 2016, the company’s revenue growth slowed to 10% from 19% in 2015. The growth was driven by its senior housing operating portfolio, life science segment, and medical office segment, and partially offset by its senior housing triple-net segment. Rental and […]
What Could Move the S&P 500 Index This Week?
The S&P 500 Index (SPY) closed the week ending August 25 at 2,443.05 and rose 0.72%—compared to the close on August 11.
Comparing the Valuations of 3 Leading Self-Storage REITs after 2Q17
Public Storage (PSA) trades at an EV-to-EBITDA multiple of ~21.5x.
Overview of Self-Storage REITs’ Development Activities in 2Q17
During 1H17, CubeSmart acquired two properties located in Maryland and California worth $21.9 million.
How Did Industrial REITs Reward Shareholders in 2Q17?
Real estate investment trusts have to distribute ~90% of their profits to investors in order to qualify as an REIT.
How 3 Key Industrial REITs Managed Expenses in 2Q17
Industrial REITs (real estate investment trusts) fund their development and redevelopment properties through debt.
Commercial REITs Have Higher Debt-to-Equity Ratios
GGP’s (GGP) debt-to-equity was 1.55x for 2Q17, which was higher than the industrial mean of 1.07x. As of 2Q17, GGP had $2.0 billion of liquidity.
Development Activities of Commercial REITs in 2Q17
Simon Property Group (SPG) had 25 redevelopment expansion projects under construction as of 2Q17.
The Top Lines for REITs Simon Property, GGP, and Vornado
When we consider the top line performance of commercial REITs, we find that they have performed decently during the second quarter.
Welltower Compared to Other Industry Players after 2Q17
Welltower’s current price-to-FFO multiple is 17.34x. It had higher-than-expected results in 2Q17 and has an optimistic outlook for fiscal 2017.
How Does Wall Street Rate Welltower among Healthcare REITs?
Welltower’s (HCN) expected performance in 2017 is reflected in analysts’ ratings for its stock. Analysts have given HCN a mean price target of $72.19.
Equity Residential’s Main Revenue Drivers in 2Q17
Equity Residential (EQR) is expected to experience slightly lower margins, mainly due to the higher cost of debt.
Comparing Welltower to Its Industry Peers
The price-to-FFO (funds from operations) multiple is the most popular method of valuing real estate investment trusts (or REIT) such as Welltower (HCN).
How Well Does Welltower Return Value to Its Shareholders?
Healthcare REITs such as Welltower (HCN) have to pay at least 90% of their taxable incomes as shareholder returns in order to function as REITs.
How Obamacare Has Affected Welltower and Healthcare REITs
The new administration under President Donald Trump has taken a key step toward repealing the Affordable Health Care Act, more popularly known as Obamacare.
Will Welltower Maintain Its Business Momentum in the Future?
Welltower’s (HCN) strategic presences in high-barrier and affluent markets help it to maintain its leadership in the healthcare infrastructure industry.
Welltower: A Healthcare REIT Poised to Grow amid Macro Headwinds
Amid uncertainty in the healthcare sector, Welltower has been able to maintain its business momentum on the back of higher operating efficiency and strategic initiatives.
GGP: A Rewarding Stock for Shareholders
General Growth Properties (GGP) has been paying dividends to its shareholders consistently in every quarter since it raised its dividend 11.1% during 4Q16 to $0.22.
GGP and Retail REITs: Malls Are Winning the Fight against Depletion
President Trump doesn’t appear to be inclined to support a higher minimum wage for workers. This could help retail REITs control their operating expenses, boosting their margins.