The global REIT market peaked at +3.78% during the quarter under review before plummeting in the lead up to the US Federal Reserve rate hike. Subsequently, the REIT market recovered to squeeze out a 0.97% total return for 1Q17 as the U.S. 10 year bond yield declined towards quarter end.
Specialty REITs collect rent from their tenants in a similar manner to that of the traditional REIT managers but it is the unique mix of property types that differentiate the two. Properties include amongst others, Data Centres, Communication Towers and Self-storage facilities.
REIT Net Asset Value (NAV) is calculated by dividing its operating profit by an attributable capitalisation rate (cap rate). A higher (or lower) applied cap rate results in a lower (or higher) estimated NAV for a given level of operating profit. The computation of an applicable cap rate is part science and part art. However, this should not detract from the ultimate objective of NAV calculations – being the derivation of the price an asset should fetch in the market.
Hierdie artikel is geskryf om vir jou basiese kennis te gee van wat ons in engels noem REITs (Real Estate Investment Trusts) of dan in afrikaans EBTs (Eiendom Beleggings Trusts). Die REITs bestaan uit beleggings in genoteerde eiendomsmaatskappye. Ons gaan verwys na die term REITs in hierdie artikel want dit is die algemene industrie term. Ons gaan streef daarna om jou te voorsien van 'n hoë vlak begrip van REITs en wys waarom verskeie beleggers internasionaal genoteerde eiendoms beleggings deel maak van hulle beleggingsportefeuljes. Ons beoog om die artikel basies en maklik te hou sodat mense vir wie hierdie inligting…
During his 15 years as chief executive officer of MAA (NYSE: MAA), Eric Bolton has steadily built the company into one of the largest U.S. multifamily REITs, with a concentration in Sun Belt states stretching westward from Florida to Nevada and northward up to Washington, D.C. Click here to read the article on reit.com (Source: REIT.com)
In recent years, passive investment products have gained significant market share across the world. In my view, John Bogle, long considered the godfather of passive investing,did the savings industry a great service, because there are many incontrovertibly good things that passive investing brings to the market:
Flip trading, or the process of repeatedly trading in and out of stocks over a very short time horizon, is a topic with widely varying opinions. Fundamental academia suggests that it does not add alpha reliably over time while technicians often make their living by either executing or suggesting flip trades. Those who follow my work know that I am quite skeptical of technicals and that my analytics are fundamental in nature, yet in this case, I am inclined to side with the technicians. When executed intelligently, I believe flip trading can consistently add alpha. Further, I believe this can…
Global real estate securities traded lower during the fourth quarter of 2016, with our benchmark (GPR 250 REIT Index) down 5.45%, taking the calendar year total return to 6.5% in USD. Lower trending bond yields during the first seven months of 2016 provided a tailwind however, the sharp rise in 4Q16 after the US elections negatively impacted the overall performance.
According to research by real estate experts GreenStreet Advisors (GSA), property investors have historically been assessing demand growth metrics incorrectly. The focus has been on: Population growth Employment growth Income growth However, the emphasis should be on income growth on a per capita basis. Income per capita combined with changes in supply are the key to determining real estate fundamentals.