Commercial Real Estate: Back In Demand
REITs in the Public Eye
InvenTrust Focusing on Retail and Student Housing Real Estate
With a new name and a pared-down portfolio, InvenTrust Properties Corp. plans to continue to shed assets as it narrows its focus down to its two primary sectors of open air retail and student housing real estate.
InvenTrust announced in April that it was changing its name from Inland American Real Estate Trust, Inc., after becoming self-managed in 2014. The name change also followed the spin-off of its Xenia Hotels & Resorts, Inc. (NYSE: XHR) lodging platform in February.
Fitch Analyst Says Market Ripe for REIT Privatizations
In the latest episode of the NAREIT Podcast, Steven Marks, managing director with Fitch Ratings, offered his thoughts on the potential for stock exchange-listed REITs being taken private.
Hudgins Sees Upside in REITs in Second Half
In the latest episode of the NAREIT Podcast, Michael Hudgins, managing director and global strategist with EII Capital Management, discussed some of the major stories in real estate investment at the moment, including REIT valuations, the demand for real estate and the impact of secular factors on the U.S. real estate market.
Congress Progressing Toward Cybersecurity Enhancements
As businesses search for ways to better protect their information from online threats, the House of Representatives has passed two cybersecurity bills aimed at bolstering the sharing of information between the public and private sector.
On April 22, the House passed a bill that would encourage businesses and the federal government to share information on known cyber threats, the Protecting Cyber Networks Act (H.R. 1560), by a 307-116 margin.
REIT Returns Slide in April
REIT returns lost ground in April as broader macroeconomic factors exerted pressure throughout the sector.
The total returns of the FTSE/NAREIT All REIT Index slipped 4.7 percent in April, while the S&P 500 Index gained 1.0 percent. The yield on the 10-year Treasury note rose 0.1 percent for the month.
Jeffrey Langbaum, senior REIT analyst at Bloomberg Intelligence, said negative economic indicators released in April, including weaker-than-expected first quarter gross domestic product, caused a pullback in REIT share prices.
Misconceptions About REITs and Interest Rates
In the latest episode of the NAREIT Podcast, Joe Fisher, director with Deutsche Asset & Wealth Management, discussed research on the performance of REITs in periods of rising interest rates.
Rising interest rates are generally seen as a drag on REITs’ performance and returns, according to Fisher, because they raise the cost of capital, and real estate is a capital-intensive business.
Research Indicates Investors Missing Out on International Real Estate
North America represents about 30 percent of the total value of real estate globally, yet many investors fail to consider real estate investment opportunities in other global markets, according to an analysis of investment patterns.