Equinix

Welltower

Prologis

American Tower

Realty Income Corp

Digital Realty Trust

Simon Property Group

Public Storage

Crown Castle International

Iron Mountain

iShares Cohen & Steers REIT ETF

ICF tracks an index of large-cap REITs selected by a committee.

JPMorgan BetaBuilders MSCI US REIT ETF

Direxion Daily Real Estate Bull 3x Shares

Direxion Daily Real Estate Bear 3x Shares

Fidelity MSCI Real Estate ETF

First Trust S&P REIT Index Fund

iShares U.S. Real Estate ETF

Nuveen Real Estate Income Fund

Invesco KBW Premium Yield Equity REIT ETF

Neuberger Berman Real Estate Securities Income Fund Inc

US Diversified Real Estate ETF

Invesco Active US Real Estate

ProShares Short Real Estate

Cohen And Steers Total Return Realty Fund

Cohen & Steers Reit And Preferred Income Fund Inc

Cohen & Steers Quality Income Realty Fund

SPDR Dow Jones REIT ETF

Schwab U.S. REIT ETF

Seven Hills Realty Trust

ProShares UltraShort Real Estate

Pacer Funds Trust-Pacer Benchmark Data & Infrastructure Real Estate Sector ETF

ProShares Ultra Real Estate

iShares Core U.S. REIT ETF

Vanguard Real Estate ETF

Virtus Real Asset Income ETF

Certain businesses are better than others at a strategic level. A good underlying strategy is essential to long-term profitability.

Determining The Viability Of A REIT's Business Model

American Assets

Armada Hoffler Properties

Brookfield Asset Management

Brandywine Realty

Boston Properties

City Office REIT

Cousins Properties

Douglas Emmett

Elme Communities

Equity Commonwealth

Franklin Street Properties Corp.

Highwoods Properties

Hudson Pacific Properties

Kilroy Realty

Orion Office REIT

Office REITs have been far-and-away the worst-performing property sector since the start of the pandemic, as depressed utilization rates and recession concerns have curbed office space demand. Work-From-Home-Forever? Occupiers due for renewal have been somewhat-reluctant to cut office space, with leasing volumes still at 75% of pre-pandemic levels, but fundamentals softened more definitively in late 2022.

Office REITs: Pain Is Priced In

Arbor Realty Trust

Ares Commercial Real Estate

AGNC Investment

Alexandria Real Estate Equities

ARMOUR Residential REIT

Blackstone Group

Chimera Investment

Camden Property

Dynex Capital

Ellington Financial

Equity LifeStyle Properties

Global Net Lease

Hannon Armstrong Sustainable Infrastructure Capital

Hersha Hospitality Trust Class A

Summit Hotel Properties

U.S. equity markets extended their rebound this week after the Federal Reserve slowed its pace of interest rate hikes while strong employment data alongside cooling wage pressures supported "soft landing" prospects. Gaining for the fourth week in the past five, the S&P 500 advanced 1.6% while the tech-heavy Nasdaq 100 rallied 3.3% - its fourth-straight week of gains. Small caps soared 5%.

Fed Blinks, Finally

ICF paid quarterly dividends since its inception, generated low but consistent yield and was able to successfully generate strong returns over the long run. ICF invested only in 30 stocks and most of ICF's equity holdings performed reasonably well during the past three months, as well as over the long run.

ICF: A Low-Yielding Diversified ETF Focusing On The Right REIT Segments

iShares MBS ETF

iShares Mortgage Real Estate ETF

Real estate earnings season kicks into gear this week, and over the next month, we'll hear results from 175 equity REITs, 40 mortgage REITs, and dozens of housing industry companies. REITs enter earnings season with some momentum amid the recent moderation in interest rates and hopes of a 'softish' economic landing following a punishing year of stock price performance.

REIT Earnings Preview: The New Normal

D.R. Horton

Mid-America Apartment Communities

U.S. equity markets resumed their rebound this past week as investors parsed a busy slate of corporate earnings results and economic data ahead of the Federal Reserve's rate hike decision. Gaining for the third week in the past four, the S&P 500 advanced 2.5% on the week while the tech-heavy Nasdaq rallied nearly 5% - its fourth-straight week of gains.

A Softish Landing

Alpine Global Premier Properties Fund

Cambria Global Real Estate ETF

CubeSmart

Invesco S&P 500 Equal Weight Real Estate ETF

Extra Space Storage

FlexShares Global Quality Real Estate Index Fund

Home Appreciation US REIT ETF

Xtrackers International Real Estate ETF

Hoya Capital Housing ETF

iShares International Developed Real Estate ETF

CBRE Global Real Estate Income Fund

iShares U.S. Home Construction ETF

Life Storage

VanEck Mortgage REIT Income ETF

Direxion Daily Homebuilders & Supplies Bull 3X Shares

National Storage Affiliates Trust

Nuveen Short-Term REIT ETF

InfraCap REIT Preferred ETF

Despite delivering the strongest earnings growth of any property sector in 2022, Self-Storage REITs have stumbled of late amid a post-pandemic demand normalization and pressure from elevated supply growth. Storage demand is driven largely by housing activity – specifically home sales and rental market turnover. Rental market turnover finished 2022 near historic-lows while home sales also dipped to decade-lows.

Storage REITs: Downsized Demand

Amazon

CBRE Group

Americold Realty

EastGroup Properties

FedEx

First Industrial Realty Trust

Home Depot

Industrial Logistics Properties

Indus Realty Trust Inc

Jones Lang LaSalle

Lowe's

Pressured by global recession concerns, Industrial REITs dipped by 30% in 2022 - the sector's worst year on record- snapping a seven-year streak of outperformance over the broader REIT Index. The frenzied investment in logistics space clashed with already-tight supply, fueling an incredible surge in rent growth across logistics and warehouse properties. Market rents have soared 50% since early 2021.

Industrial REITs: Shortages Become Gluts

Brunswick

Cavco Industries

Camping World Hlds

MarineMax

LCI Industries

Malibu Boats

MCBC Hlds

Patrick Industries

Manufactured Housing REITs snapped an incredible streak of nine straight years of outperformance over the REIT Index in 2022, impacted by headwinds from higher interest rates and hurricane-related disruptions. Despite their REIT-leading growth rates, Manufactured Housing ("MH") REITs have historically been among the most interest rate-sensitive sectors due to their counter-cyclical demand profile and remarkable operational consistency.

Manufactured Housing: Recession-Resistant REITs

Although the change in public REIT equity prices over the past 12 months would not suggest it, 2022 actually saw earnings growth arrive above our initial expectations. We forecast total returns for REITs in 2023 to be between +8% to +12%.

2023 Chilton REIT Forecast

ACRES Commercial Realty Corp.

Braemar Hotels & Resorts Inc

Broadmark Realty Capital Inc.

Cherry Hill Mortgage

EPR Properties

Franklin BSP Realty Trust Inc

Four Corners Property Trust

Invesco Mortgage Capital

NexPoint Real Estate Finance

New York City REIT Inc

iShares Preferred and Income Securities ETF 

U.S. equity markets closed out their worst year since the Financial Crisis with a fourth-straight week of declines as Treasury yields jumped back to seven-week highs on renewed inflation and COVID concerns. Dragging its full-year declines to nearly 20%, the S&P 500 slipped 0.1% this week while the tech-heavy Nasdaq dipped another 0.4%, shedding nearly a third of its value in 2022.

Good Riddance, 2022

Janus Henderson U.S. Real Estate ETF

Invesco Dynamic Building & Construction ETF

iShares Residential Real Estate ETF

SPDR S&P Homebuilders ETF

If I had to distill my current macro outlook down into a sentence or two it would be “watch everything housing related”. The CPI is still showing rents rising.

3 Things I Think I Think - Housing Risks

CBL & Associates Properties

Macerich

Pennsylvania Real Estate Investment Trust

Tanger Factory Outlet Centers

Seritage Growth Properties

Real Estate Select Sector SPDR Fund

Mall REITs - which endured a dismal stretch of underperformance from 2015-2020 - enter the critical holiday season on surprisingly stable footing as resilient consumer spending has offset broader macro-headwinds. The momentum from the stimulus-fueled ‘spending spree' appears likely to carry retailers through the holiday season. Store openings continue to outpace store closings in 2022 by the widest-margin in decades.

Mall REITs: The Bleeding Has Stopped

Pacer Benchmark Industrial Real Estate SCTR ETF

Invesco Real Assets ESG ETF

Janus Henderson Mortgage-Backed Securities ETF

First Trust Low Duration Opportunities ETF

NETLease Corporate Real Estate ETF

iShares Global REIT ETF

ALPS Active REIT ETF

IQ US Real Estate Small Cap ETF

SPDR Portfolio Mortgage Backed Bond ETF

Global X SuperDividend REIT ETF

Vanguard Mortgage-Backed Securities ETF

Mortgage rates have not been this high since before the housing crisis. And while the housing market is slowing, prices are still high.

High Mortgage Rates And High Inflation

Commercial real estate, which is what most of the specialty REITs cover, is just as exposed to the situation with rates as residential real estate. The ICF has great specialty exposures whose fundamentals should be more resilient than average, but it's a matter of relative returns and real estate will struggle with rate hikes.

ICF Will Likely Suffer Medium Term With Rates

Healthcare Realty Trust Inc

LTC Properties

Medical Properties Trust

National Health Investors

Omega Healthcare Investors

Sabra Health Care

Ventas

Healthcare REITs have lagged over the past quarter as sharply higher labor costs, a sluggish post-COVID recovery in patient volumes, and the waning of government fiscal support have pressured operators. Hospital operators have been slammed particularly hard as elective surgeries continue to be either delayed or pushed to outpatient facilities, amplifying a broader industry shift towards low-cost healthcare settings.

Healthcare REITs: Staffing Shortage Stumble

WisdomTree Japan Hedged Equity Fund

ICF and DXJ saw massive trading volumes in yesterday session.

REIT and Currency Hedged: 2 ETFs to Watch for Outsized Volume

Federal Realty Investment Trust

Global Medical REIT

REITs are trading at the lowest valuation in years. Yet, few seem to be buying them due to fears of rising rates.

Important Warning To REIT Investors

Global Self Storage

Self-Storage REITs have defied expectations to the upside as comprehensively as any real estate sector since the start of the pandemic, delivering earnings growth of over 50% since 2019. Incremental storage demand is driven by change- particularly home moving rates and household formations. Surging mortgage rates have had a "lock-in" effect among existing homeowners while also pricing-out new formations.

Storage REITs: Locked-In And Sticky

Airbnb

Ashford Hospitality Trust

Apple Hospitality REIT

Choice Hotels Int.

Chatham Lodging Trust

Hyatt Hotels

Hilton Worldwide Holdings

Host Hotels & Resorts

Marriott

Pebblebrook Hotel Trust

Park Hotels & Resorts

Sunstone Hotel Investors

Sotherly Hotels

Hotel REITs have held up surprisingly well throughout the recent market turmoil and remain one of the top-performing property sectors this year following a solid summer of operating performance. Several years of pent-up leisure demand from COVID delays helped to offset a slow business travel recovery. STR recently reported that profitability levels were above 2019 levels throughout the summer.

Hotel REITs: Winter Is Coming

News for iShares Cohen & Steers REIT ETF ETF (ICF)