Summary - Assessing REIT management is crucial in determining which stocks are opportunistic. - We go over some red and green flags that can hint at management's trustworthiness. - Misconceptions about certain management teams can create sizable mispricing and we think there is presently a clear dislocation. REITs are often looked at as asset or yield plays, but they are operating businesses. Management and the business strategy can matter as much as the NAV and bad management can cause tremendous amounts of damage. Click here to download full article (Source: Seeking Alpha)
The commonly held beliefs of which factors contribute to generating returns from REITs have typically been attributed to High Yields, Medium levels of Leverage, and Mid – to High Cap Rates. In our current environment, the changing demographics brought on by an aging population has heightened the focus on post retirement income generation. However, a decline in capital generation is a by-product of a fixation on yield and ultimately a deterioration in the ability to generate income of any consequence.
The GPR 250 REIT World Index exhibited a total return of -5.87% (in U.S. dollars) for the first quarter of 2018. The increase in the US 10-year bond yield from 2.4% at the start of the quarter, to 2.7% at quarter end, was a significant contributor to this.
Tax season is once again upon us, and you can access the Reitway fund in a TFSA format on the Stanlib and Momentum platforms. See the related article for interesting information regarding TSFAs. Contact email@example.com for Reitway TFSA specific information. Click here to download full article (Source: Moneyweb)