The FTSE Nareit All Equity REITs index rose 8.6 percent for the month, erasing nearly half of 2022’s year-to-date losses. Along with other equities, publicly-traded REIT stocks suffered a rough first half of 2022, but that picture began to change in July with the FTSE Nareit All Equity REITs index rising 8.6 percent. Entering the month, REIT total returns were down nearly 20 percent for the year, but July helped claw back some of that drop, leaving the index down 12.3 percent. Click here to download full article
Market Overview There were few places to hide during the first half of 2022.High levels of inflation, slowing growth, rising rates, Fed policy uncertainty and fallout from Russia’s war on Ukraine weighed on capital market returns.REITs were no exception. The GPR 250 REIT World Index continued its negative streak during 2Q22. The index declined -8.14% during June, following losses of -5.21% and -5.14% during April and May respectively.As a result, the property sector is trading 17.4% lower than at the start of the year. On a country level, Hong Kong and Singapore delivered the best returns during the quarter while…
Martin Botha discusses how the current economic environment affects the Real Estate market globally, and how we are navigating this. He covers where we are finding opportunities and addresses our investment outlook for the rest of the year. Download the rest of the video here
                                                                   Some investors and analysts believe that the REIT sector could outperform the stock market in the near term. There are 28 sectors and subsectors available in the asset class. Viewing Global and Local Listed Property as the same asset class could be a risk. ___________________________________________________________________________________________ Market Commentary There was a significant gap between the REIT sectors that are outperforming and those that are underperforming, with differences of close…
"R10 000 invested in the SA listed property sector was today worth only R5 289 (average annual loss 5,29%) while the same investment in the Reitway fund was worth an astonishing R32 289, almost six times the value". Click here to read the fuil article
Some investors and analysts believe that the REIT sector could outperform the broader market in the near term. One reason for that is that public REITs bore the brunt of the pain early, and investors are likely going to look to REITs as an inflation hedge. Click here to read the full article
                                                                   High Inflation will persist, and a recession is a real possibility There are 28 sectors and subsectors available Is now an attractive entry point into the asset class? ___________________________________________________________________________________________ Commentary Our benchmark, the GPR 250 REIT World Index produced a total return of -13.28% in US dollar terms during the first five months of 2022. Tightening monetary policy and inflationary pressures continue to challenge markets, and recession…
On Thursday the 28th of April Amazon.com Inc. posted its first quarterly loss in seven years, a result that reflected broad economic issues related to a slump in online shopping, increased inflation costs and ongoing supply-chain issues. The unwelcome news was not limited to Amazon but smashed into the global real estate logistics and warehousing sector as Amazon announced that it would curtail its expansion and look to cut excess space. Most logistics REITs saw their stock prices on a rolling year basis peak at the end of 2021, except for Prologis who peaked the day before Amazon’s news hit…
As published on 22 Apr 2022 by Kyle Wales, Flagship Asset Management I believe that current high levels of inflation will be transient. However, I believe risks remain to the upside.I believe that current high levels of inflation will be transient. However, I believe risks remain to the upside.In this article I will draw upon the historical precedent of the 1970’s to show how the experience during that decademight suggest that the risk of an outlier scenario of persistent high inflation may be greater than what many think. Inthe words of Mark Twain “History doesn’t often repeat itself but it…