Vanguard REIT ETF
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Fund ManagersWhy 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.
MiscellaneousWill the Fed’s Dovish Stance Ignite REITs This Year?
With the strength of the labor market faltering, market participants expect the Federal Reserve to take a dovish stance on interest rates. What does this mean for REITs?
Real InsightsHow Real Asset Investing Could Boost Portfolio Returns
Volatility in stocks and bonds shifts investors’ attention from a traditional stock-bond portfolio to another asset class called real assets.
Real InsightsThe 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.
Earnings ReportEquinix 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.
HealthcareExtra Space Rides on Strong Fundamentals and Earnings Outlook
Extra Space’s top-line and bottom-line results have been seeing YoY (year-over-year) growth for the past several quarters.
Earnings ReportEquinix 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.
Earnings ReportWhere 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.
Real InsightsRAAX ETF: Capturing Real Benefits of Real Assets
RAAX’s allocation process provides exposure to segments with better returns profiles while managing overall portfolio risk.
Real InsightsAre 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.
Real InsightsRAAX 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 […]
Macroeconomic AnalysisWill 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.
Macroeconomic AnalysisWhy REIT Valuations Look Attractive as the Market Hits the Roof
In the recently concluded first quarter, more than 95% of REITs reported earnings beats and maintained their guidances for 2018.
Macroeconomic AnalysisWhy 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%.
Company & Industry OverviewsHow 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.
Company & Industry OverviewsA Look into American Tower’s Major Revenue Drivers
American Tower (AMT) owns and operates over 160,000 communications sites around the world.
Real EstateRAAX: 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?
Real InsightsRAAX 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?
Real InsightsStrategic 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.
Macroeconomic AnalysisNon-Manufacturing Sector Grew for 98th Consecutive Month
In March, the service sector continued to grow but at a slower pace.
Company & Industry OverviewsHow 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.
Company & Industry OverviewsHCP’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.
Company & Industry OverviewsHCP 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.
Company & Industry OverviewsHCP’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.
Company & Industry OverviewsHCP Inc.’s Demographic Drivers of Demand
According to the National Bureau of Economic Data, the first wave of Baby Boomers are expected to turn 75 in 2020.
Company & Industry OverviewsHCP 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.
Company & Industry OverviewsChart 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.
Company & Industry OverviewsHCP 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%.
Company & Industry OverviewsHCP’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).
Company & Industry OverviewsHealthcare 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.
Company & Industry OverviewsHealthcare 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.
Company & Industry OverviewsHow Healthcare Trust of America Rewards Its Investors
HTA paid dividends of $1.17 in 2015, $1.19 in 2016, and $1.21 in 2017.
Company & Industry OverviewsHealthcare Trust of America’s Balance Sheet
In 2017, Healthcare Trust of America (HTA) had total leverage of 29.9%.
Company & Industry OverviewsHealthcare 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.
Company & Industry OverviewsHTA’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.
Company & Industry OverviewsHealthcare 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.
Company & Industry OverviewsHealthcare 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.
Company & Industry OverviewsHow 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%.
Company & Industry OverviewsWelltower’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.
Company & Industry OverviewsWelltower’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.
MiscellaneousCrude 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.
MiscellaneousWill 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.
Company & Industry OverviewsHow Does Equity Residential’s Balance Sheet Look?
EQR reported higher revenues backed by strong growth in rental income.
Company & Industry OverviewsHow 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.
Company & Industry OverviewsHow 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.
Company & Industry OverviewsEquity 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.
Energy & UtilitiesCrude 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.
Company & Industry OverviewsWhat 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.
Company & Industry OverviewsKey Drivers Contributing to SPG’s Evolution
Simon Property Group’s capital expenditure increased ~15.0% in 2Q17 while it decreased ~1.2% in 3Q17.
Company & Industry OverviewsSimon 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.
Macroeconomic AnalysisThis 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.
Real InsightsWhat’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).
Real EstateWhy 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 […]
Macroeconomic AnalysisWhat 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.
Company & Industry OverviewsComparing the Valuations of 3 Leading Self-Storage REITs after 2Q17
Public Storage (PSA) trades at an EV-to-EBITDA multiple of ~21.5x.
Company & Industry OverviewsOverview of Self-Storage REITs’ Development Activities in 2Q17
During 1H17, CubeSmart acquired two properties located in Maryland and California worth $21.9 million.
Company & Industry OverviewsHow 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.
Company & Industry OverviewsHow 3 Key Industrial REITs Managed Expenses in 2Q17
Industrial REITs (real estate investment trusts) fund their development and redevelopment properties through debt.
Company & Industry OverviewsCommercial 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.
Company & Industry OverviewsDevelopment Activities of Commercial REITs in 2Q17
Simon Property Group (SPG) had 25 redevelopment expansion projects under construction as of 2Q17.
Company & Industry OverviewsThe 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.
Earnings ReportWelltower 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.
Earnings ReportHow 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.
Earnings ReportWhy 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.
MiscellaneousChart in Focus: The Top 10 Dividend-Yielding REITs
In this series, we’ll analyze how the top ten dividend-yielding REITs have performed in comparison to the S&P 500.
Earnings ReportEquity 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.
Company & Industry OverviewsHow 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.
Company & Industry OverviewsComparing 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).
Company & Industry OverviewsHow 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.
Company & Industry OverviewsInnovation 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.
Company & Industry OverviewsHow 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.
Company & Industry OverviewsWill 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.
Company & Industry OverviewsWelltower: 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.
MiscellaneousAnalyzing the Dividend Yields of the Cyclical and Defensive Sectors
The S&P 500 (SPY) defensive sectors tend to offer an attractive yield to investors during low-interest environments or when the economy is slowing down.
Company & Industry OverviewsGGP: 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.
Company & Industry OverviewsHow Does GGP Manage Its Balance Sheet?
GGP reached a debt-to-equity ratio 2.2x in 2014, its highest in the last five years.
Company & Industry OverviewsGGP 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.
Company & Industry OverviewsGGP: Redevelopment Helps Drive Traffic to Changing Malls
Mall owners such as GGP (GGP), Simon Property Group (SPG), DDR (DDR), and Kimco Realty (KIM) are redeveloping their vacant areas that were once occupied by anchor tenants.
Company & Industry OverviewsGGP 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.
Company & Industry OverviewsGGP Inc.—A Growth Story amid Struggling Retail REITs
Despite the belief that US malls are giving way to e-commerce, malls are adapting to consumers’ changing needs. Mall owner GGP (GGP) has been able to maintain its earnings streak since 2012.
Company & Industry OverviewsHow Does Equity Residential Manage Its Debt Leverage?
Equity Residential’s effective overall borrowing rate for fiscal 2016 was ~4.5%, close to its 2015 level of ~4.6%.
Company & Industry OverviewsEquity Residential’s Geographic Expansion
As a part of its strategy initiated in 2005, Equity Residential (EQR) started to sell off its properties to other REITs located in less-dense regions.
Company & Industry OverviewsHow 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.
Company & Industry OverviewsUnderstanding 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.
Company & Industry OverviewsEquity Residential: The Largest Apartment Building Owner in the US
On March 31, 2017, Equity Residential (EQR) owned 302 properties in ten states and the District of Columbia, comprising 77,498 apartment units.
Company & Industry OverviewsInvesting in Simon Property Group: Relative Valuation
Simon Property Group’s current price-to-FFO multiple is ~14.1x.
Company & Industry OverviewsHow Wall Street Analysts View Simon Property Group
Analysts gave SPG a mean price target of $202.45, implying an ~25.1% rise from its current level of $161.78.
Company & Industry OverviewsCan REITs Like Simon Property Group Survive the Fed’s Interest Rate Hikes?
The hawkish interest rate environment has added to the woes of mall owners like Simon Property (SPG), as well as the REIT industry.
Company & Industry OverviewsSimon Property Group: A Must-Know Overview
On March 31, 2017, Simon Property Group’s business in the US stood at a hefty figure of 206 properties, including malls, premium outlets, and lifestyle centers.
Company & Industry OverviewsSimon Property Group: A Growth Story amid Tremors in REITs
On April 27, Simon Property Group (SPG) reported 1Q17 earnings per share of $1.53, a 2% beat of the consensus estimate of $1.50.
Company & Industry OverviewsThe 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.
Real InsightsAllocating Your Portfolio When Inflation Rises
Gold and oil are good hedges against inflation. While gold usually outperforms, if inflation rates rise along with interest rates, it might gain as much.
Company & Industry OverviewsHow 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.
Macroeconomic AnalysisWhy 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 […]
Macroeconomic AnalysisWhy 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 […]
Macroeconomic AnalysisThe 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 […]
Macroeconomic AnalysisREITs 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% […]
Macroeconomic AnalysisREITs 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 […]
Macroeconomic AnalysisFederal Spending and Interest Rates: Analyzing the Connection
What about the impact on interest rates? Here again, there is no consistent relationship between spending and interest rates.
Macroeconomic AnalysisWhy 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.