Equinix

Digital Realty Trust

AvalonBay Communities

Prologis

Four Corners Property Trust

Alexandria Real Estate Equities

Equity Residential

Simon Property Group

Welltower

Easterly Government Properties

US Diversified Real Estate ETF

PPTY tracks an index of fundamentally-selected and -weighted US-listed equities that derive income from the ownership or management of real estate.

American Tower

JPMorgan BetaBuilders MSCI US REIT ETF

Healthpeak Properties Inc

Direxion Daily Real Estate Bull 3x Shares

Direxion Daily Real Estate Bear 3x Shares

Ellington Financial

Extra Space Storage

Fidelity MSCI Real Estate ETF

First Trust S&P REIT Index Fund

Global Net Lease

iShares Cohen & Steers REIT ETF

iShares U.S. Real Estate ETF

Nuveen Real Estate Income Fund

Invesco KBW Premium Yield Equity REIT ETF

Kimco Realty

Gladstone Land

Neuberger Berman Real Estate Securities Income Fund Inc

Realty Income Corp

Invesco Active US Real Estate

Ready Capital Corp

Regency Centers

ALPS Active REIT ETF

ProShares Short Real Estate

Cohen And Steers Total Return Realty Fund

Two years of persistent rate-driven pressure on commercial and residential real estate markets appeared to be easing in early 2024, but firming inflation has again muddied the outlook. Expectations of "Higher for Longer" have merely shifted to "High for Long." Many private equity funds and some highly-levered REITs were ill-prepared for a period of sustained 4-5%+ benchmark rates. Private markets are finally feeling the pain that beset public REIT investors since 2021. Commercial property values have now declined over 20% nationally, and nearly 40% in some troubled segments.

State Of REIT Nation: Not Out Of The Woods, Yet

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

How REITs have fared through high interest rate environment. Takeaways from REITs earnings season so far. When rate cuts do come, some REIT sectors may stand to benefit.

Why Lower Rates Could Lead To Opportunities In REITs This Year

ProShares Ultra Real Estate

iShares Core U.S. REIT ETF

Vanguard Real Estate ETF

The yield on 10-year Treasury Inflation-Protected Securities TIPS fell significantly from ~2.5% to ~1.7% in the last two months of 2023. How does this affect real estate? As long-lived, fixed assets with inflation-protective characteristics, quality real estate can be viewed as an equivalent to TIPS plus a risk premium.

An Opportunity For REITs To Shine In 2024

AGNC Investment

Boston Properties

Crown Castle International

iShares CMBS ETF

Dynex Capital

Equity LifeStyle Properties

Empire State Realty Trust

Jones Lang LaSalle

iShares MBS ETF

Medical Properties Trust

Orchid Island Capital

U.S. equity markets notched another week of gains after a busy slate of economic data and corporate earnings results were broadly consistent with a "soft landing" trend for the domestic economy. Ahead of the Federal Reserve's first policy meeting of 2024, the FOMC's favored inflation gauge - Core PCE - showed a "2-handle" for the first time in nearly two years. Notching a series of record highs through the week, the S&P 500 advanced 1.2%, extending its impressive rally since late October to 12 of the past 13 weeks.

Fed Looms As Earnings Begin

After lagging equities for the past two years, REITs offer an attractive investment opportunity in 2024. Peaking or falling yields have historically been a catalyst for strong REIT market outperformance.

2024 Listed REITs Outlook

Real estate earnings season kicked 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. The sector with perhaps the most to gain from moderating inflation and a normalization in Fed monetary policy, REITs enter earnings season with upside momentum after a dismal eighteen-month stretch. Sentiment and macroeconomic conditions have improved significantly in the past quarter, fueled by several months of encouraging inflation data pointing once again towards a "soft landing" for the domestic economy.

REIT Earnings Preview: Animal Spirits Revived?

CubeSmart

National Storage Affiliates Trust

Public Storage

Global Self Storage

Self-Storage REITs delivered incredible growth early in the pandemic driven by surging housing market activity, but have been victims to their own success of late amid a supply-driven cooldown. Robust double-digit rent growth and relatively low operational barriers to entry prompted a wave of new development, with a roughly 12% expansion in total supply expected between 2022 and 2024. This supply boom - twice the magnitude of the multifamily sector - has reignited fierce "storage wars" between competing facilities, which has led to double-digit dips in new lease rates since mid-2022.

Storage REITs: Victims Of Own Success

Principal Real Estate Active Opportunities ETF

CorEnergy Infrastructure Trust

Dimensional US Real Estate ETF

Dimensional Global Real Estate ETF

Diversified Healthcare Trust

iShares Environmentally Aware Real Estate ETF

Goldman Sachs Future Real Estate And Infrastructure Equity ETF

Home Appreciation US REIT ETF

Pacer Benchmark Industrial Real Estate SCTR ETF

JPMorgan Realty Income ETF

Janus Henderson U.S. Real Estate ETF

NETLease Corporate Real Estate ETF

Nuveen Short-Term REIT ETF

Pennsylvania Real Estate Investment Trust

The REIT sector closed the year out strong with a +11.40% total return in December, pushing into positive territory for the full year (+8.66%). Small cap REITs (+13.39%) outperformed in December. Large cap REITs (+9.55%) averaged a lower return than their smaller peers. 90.79% of REIT securities had a positive total return in December with 66.25% in the black for the full year.

The State Of REITs: January 2024 Edition

Apartment Income REIT Corp

Clipper Realty

Camden Property

Centerspace REIT

Elme Communities

Essex Property Trust

Independence Realty Trust

Mid-America Apartment Communities

NexPoint Residential Trust

Apartment REITs were among the weakest-performing property sectors for a second-straight year in 2023 - lagging even the battered office sector - despite delivering another year of mid-single-digit earnings growth. Following two years of record-setting rent growth, residential rents decelerated in 2023 alongside a broader cooling of inflationary pressures, with multifamily rents seeing a particularly sharp cooldown amid supply headwinds. The wave of pandemic-era development - started at a time when rents were rising double-digits - resulted in a record year of new deliveries in 2023 with similarly elevated supply levels.

Apartment REITs: A Renter's Market

Alpine Global Premier Properties Fund

Cambria Global Real Estate ETF

First Trust Alerian Disruptive

Xtrackers International Real Estate ETF

iShares International Developed Real Estate ETF

CBRE Global Real Estate Income Fund

Nuveen Real Asset Income & Growth Fund

iShares Global REIT ETF

REIT index performance can be a leading indicator for the asset class as a whole. Our latest Asset Allocation recorded a strong quarter for listed real estate, showing signs of long-awaited resurgence. REITs send encouraging signals. A deeper analysis of sectoral returns since the Great Financial Crisis reveals no clear pattern, vindicating broad sectoral exposure.

Listed Real Estate: Searching For Positive Signals While Reviewing The Case For REITs

Office Properties Income Trust

REITs averaged a -5.31% total return in October and have now fallen to a double-digit negative total return year to date (-10.46%). Large cap REITs (-2.24%) outperformed their smaller peers in October. Micro caps (-11.32%) extended their streak of severe underperformance. 26.80% of REIT securities had a positive total return in October with just 25.00% in the black year to date.

The State Of REITs: November 2023 Edition

Brookfield Asset Management

Blackstone Group

Major private equity groups are investing in the REIT sector. They are buying apartment REITs at 60-70 cents on the dollar. So am I and here's why.

I Am Buying Apartment REITs Hand Over Fist

Arlington Asset Investment

Arbor Realty Trust

Ellington Residential Mortgage REIT

Gaming and Leisure Properties

Lument Finance Trust

U.S. equity markets extended their rebound to a third-straight week as benchmark interest rates dipped on economic data and corporate earnings reports showing a more distinct cooldown in economic activity. Gaining for a third-straight week and extending its rebound to nearly 10% since dipping into "correction territory" at the end of October, the S&P 500 gained another 2.4% this week. Lifted by the retreat in benchmark interest rates, real estate equities have roared back to life over the past three weeks. Equity REITs and Mortgage REITs each gained another 4.7%.

Disinflation Is Back

The S&P 500 has massively outperformed REITs in recent years. But we expect this outperformance to soon reverse. I explain why I expect REITs to easily beat the S&P 500 going forward.

Why REITs Will Likely Pummel The S&P 500

Hoya Capital Housing ETF

iShares U.S. Home Construction ETF

VanEck Mortgage REIT Income ETF

Direxion Daily Homebuilders & Supplies Bull 3X Shares

Invesco Dynamic Building & Construction ETF

iShares Mortgage Real Estate ETF

iShares Residential Real Estate ETF

IQ US Real Estate Small Cap ETF

Invesco S&P 500 Equal Weight Real Estate ETF

Global X SuperDividend REIT ETF

SPDR S&P Homebuilders ETF

Real Estate Select Sector SPDR Fund

DoubleLine Commercial Real Estate ETF

Invesco Real Assets ESG ETF

SPDR Dow Jones Global Real Estate ETF

SPDR Dow Jones International Real Estate ETF

Vanguard Global ex-U.S. Real Estate ETF

iShares International Developed Property ETF

The history of construction spending since 1993 reveals that this data tends to weaken prior to recessions. For a recent dip in Residential Construction attributed to the rise in mortgage rates, this indicator is charging higher.

Construction Spending Rises

Industrial Logistics Properties

Power REIT

REITs averaged a -7.14% total return in September and have fallen into the red year to date. Small cap REITs (-6.51%) outperformed yet again in September. Micro caps (-10.45%) continue to severely underperform their larger REIT peers. Only 9.74% of REIT securities had a positive total return in September with 34.38% in the black year to date.

The State Of REITs: October 2023 Edition

Why Warren Buffett And Charlie Munger Don't Like REITs But You Should

REITs are currently facing widespread dislike among investors. The negative sentiment towards REITs is due to the high-interest rates. I explain why I believe that most investors are misguided and highlight some opportunities to consider.

Urgent Warning To REIT Investors

Americold Realty

First Industrial Realty Trust

Hersha Hospitality Trust Class A

OUTFRONT Media

The REIT sector gave up some of the gains achieved in June and July, with a -4.13% average total return in August. Small cap REITs (-2.49%) outperformed again in August. Micro caps (-13.08%) badly underperformed their larger REIT peers. Only 18.06% of REIT securities had a positive total return in August, with 48.13% in the black year to date.

The State Of REITs: September 2023 Edition

Amidst the bearish sentiment towards real estate, a compelling opportunity to own REITs has emerged. The deeply discounted REIT market has largely priced in the challenges for real estate of higher rates and tighter credit markets. Areas of concern for real estate - office properties or too much leverage - are well-contained in public REIT markets. REITs generally possess high-quality balance sheets and have minimal exposure to traditional office space.

Opportunities In Listed REITs Today

InnSuites Hospitality Trust

Strategic Residential & Apartment Real Estate ETF

Hoya Capital High Dividend Yield ETF

The REIT sector followed a strong June with further gains in July, averaging a solid +4.37% total return in July. Small-cap REITs (+5.23%) continued to outperform in July. Large caps (+2.46%) underperformed their smaller REIT peers for the 3rd straight month in July. 73.72% of REIT securities had a positive total return in July with 60.63% in the black year to date.

The State Of REITs: August 2023 Edition

NAREIT has developed a financial metric called Funds From Operations, or FFO, that investors in REITs can use to better evaluate their financial performance. Dividend income plays a big role in why investors would seek to own stocks in REITs. What makes the FFO information valuable to investors is its correlation with the dividends paid out by REITs.

Connecting FFO To DPS For REITs

I hold a significant allocation towards quality REITs. In this article, I share my bullish thesis for investing in the sector. I also highlight catalysts that could take quality REITs to new all-time highs in as little as 12 months.

My Bullish REIT Thesis And Catalysts That Could Take Us To New ATHs

Apple

Amazon

AST SpaceMobile

Altice USA

Charter Communications

Comcast

DigitalBridge Group

DISH Network

Cell Tower REITs have been the weakest-performing property sector since the start of 2022 - lagging even the battered office sector - amid a telecommunications industry-wide slump inflamed by tight monetary conditions. Cellular carriers have curbed their capital-intensive network expansion plans in recent quarters following a significant wave of investment and tower equipment upgrades from 2019-2022 to deploy nationwide 5G networks. The latest selloff was intensified by an expose alleging that century-old abandoned phone lines owned by AT&T and Verizon are leaching toxic lead into drinking water, potentially requiring costly remediation.

Cell Tower REITs: Toxic Telecom?

Farmland Partners

Host Hotels & Resorts

PotlatchDeltic

After 4 straight months in the red, the REIT sector surged back into the black year to date with a stellar +7.41% total return in June. Small cap REITs (+8.59%) outperformed again in June. Large caps (+5.51%) again underperformed their smaller REIT peers in June. A remarkable 87.34% of REIT securities had a positive total return in June with 49.69% in the black year to date.

The State Of REITs: July 2023 Edition

News for US Diversified Real Estate ETF ETF (PPTY)