Open most financial newsletters and you will be confronted with a plethora of “it’s time to buy” a particular share opinions. The investment cycle begins with buying as it is the starting point of performance measurement. However, whilst buying at the right price may ultimately determine the profit gained, selling at the right point guarantees the actual profit, when a profit is made. Thus, failure to sell at the appropriate time results in the benefits of correctly timed buying disappearing!
REITs were established as an asset class in the US in the 1960’s. Since then, REIT legislation has been recognized in 37 countries. The largest and most mature of the non-US REIT markets in terms of market cap are Singapore, continental Europe, the UK, Hong Kong, Japan and Australia. For a company to achieve REIT status it must (amongst other criteria): • invest at least 75% of its total assets in real estate• derive at least 75% of its income through rentals, generated by the property assets it owns• pay out at least 90% of its taxable income as dividends…
Global real estate securities, as measured by the GPR 250 REIT World Index, generated a modest total return of 1.12% in U.S. dollars during the second quarter of 2017. The macro backdrop was generally supportive as global growth continued at a measured pace while inflation data remained soft. Bond market volatility picked up noticeably during the last week of June as investors digested a string of hawkish comments from previously dovish central banks. An optimistic speech from ECB President Mario Draghi set the tone, triggering the biggest single day rise in German bond yields in over two years. This was followed up by comments from…
The Japanese REIT market is homogenous and somewhat mysterious. Notwithstanding the above, we have identified investible opportunities within the broader Japanese property market that satisfy our desire for superior cash flow growth. We continue to manage our global property fund in a benchmark agnostic manner. This affords us the opportunity to invest in securities and themes that others shun or only adopt in a very delayed manner. In addition, we remain true to our core approach of investing in accordance with our Growth at a Reasonable Price investment style.
To prepare you for the next tax year end, I thought I’d pen a special feature that uncovers which investment type benefits the most from a Tax Free Savings Account (TFSA). Remember that your last chance to top up your TFSA before the new tax year will be 28 February 2018. Click here to download the full article (Source: Sharenet Marketviews)
Rate hikes get a lot of attention, but for REITs, they're often not the big story. The big stories today are 77 consecutive months of job growth, a 9-year low in unemployment and a strengthening economy, giving landlords greater ability to raise rents. When rents are rising, history shows that REITs can deliver strong returns—despite higher interest rates. Click here to download full article (Source: Cohen & Steers)
A ludicrous mentality has taken over the herds in relation to Malls. The belief is that all Non-A malls will perish. "Sales per square foot" is just one measure to value a mall. Click here to download full article (Source: Seeking Alpha)
In the years since the crisis, financial markets have started to be transformed by a new innovation -- exchange-traded funds. ETFs are still only a fraction of the stock market, but that fraction is rising steadily. Meanwhile, ETFs are also moving into lots of markets that they don’t obviously seem suited for. Unlike stocks, bonds are not very standardized -- they have different issuers, maturities and contract terms. But more and more bonds are getting bundled together and traded on exchanges, with assets approaching $500 billion. Click here to download full article (Source: Bloomberg)
The U.S. continues to show signs of economic improvement, which are most visible in the upward march of monthly employment data, improving consumer confidence and accelerating loan growth. These trends have led to the continued withdrawal of quantitative easing QE by the Federal Reserve (the Fed), which will eventually bring the era of nearzero interest rates to an end. Real estate investment trusts, or REITs, have benefited from the recent era of record low interest rates, which have served to reduce borrowing costs and strengthen balance sheets.