Investing in REITs helps returns in a diversified portfolio in several ways. Most importantly, REITs have delivered a long-term total return to investors that generally matches and often beats broad market aggregates. For example, the compound annual total return on the FTSE-Nareit All Equity REITs index in the 25 years through January, 2019, was 10.3 percent, one full percentage point higher than the total return on the S&P 500 over the same period. Click here to download full article (Source: Nareit)
REIT share prices rose sharply in January, delivering to investors (PDF), according to the FTSE Nareit All Equity REITs Index. REITs outpaced the broader stock market, as the S&P 500 posted a total return of 8.0 percent. In fact, January was the strongest monthly performance for REITs since October 2011. Click here to download full article (Source: Nareit)
Global equity markets suffered a significant correction during the fourth quarter of 2018. The weakness experienced across many emerging markets through September spread to developed markets, with the highly valued technology stocks in the S&P 500 Index leading the way down. While real estate equity markets were certainly not immune, they were far less affected.
REITs have generally provided a solid bulwark against stock market declines, with both a low correlation (typically about 60 percent when measured using monthly returns) and a low beta (typically about 0.6, also based on monthly returns) to the broad stock market. Click here to download full article (Source: Nareit)
While not quite as profound as the Shakespearean original, it is still quite a tricky one for real estate investors to grapple with. Until fairly recently, it is one that has been avoided by the majority of real estate investors due to their heavy home bias. But the increasing global nature of the asset class, combined with rising currency volatility, means the question is becoming increasingly difficult to avoid. Click here to download full article (Source: MSCI.com)
For many people, an early window into the world of real estate investing comes through the board game Monopoly, played somewhat reluctantly at family gatherings. Amid the inevitable tears, tantrums, and arguments about rules, kids and adults learn the value of real estate as an income-generating investment and the imporatnce of properly managing cashflow.