Quick Study: Investor Uncertainty Produces Quiet Month for REITs

In the latest edition of Quick Study, Brad Case, NAREIT’s senior vice president for research and industry information, a “fairly quiet” November for REITs and other asset classes.

The total returns of the FTSE/NAREIT All REIT Index fell 0.3 percent in November, while the S&P 500 Index gained 0.3 percent. The yield on the 10-year Treasury note was up 0.1 percent for the month. Case pointed out that mortgage REITs gained 1 percent for the month while producing strong dividend yields.

Brad Case

News

Morgan Stanley Banker Says Timing Not Right for REIT IPOs

Jackson Hsieh, vice chairman at Morgan Stanley, joined REIT.com for a video interview at REITWorld 2015: NAREIT’s Annual Convention for All Things REIT at the Wynn Las Vegas.

In the March/April edition of REIT magazine, Hsieh said that while the market for traditional IPOs is still open, the bar is “very high.”  In the subsequent months the bar for REIT IPOs has only got higher, he noted.

With REIT indexes basically flat, investors aren’t making money on existing floated companies, Hsieh said.

Jackson Hsieh

News

REITs Lose Ground in November

REITs lost ground in November, as uncertainty over the timing of interest rate changes and concerns about economic data weighed on the sector.

The total returns of the FTSE/NAREIT All REIT Index fell 0.3 percent in November, while the S&P 500 Index gained 0.3 percent. The yield on the 10-year Treasury note was up 0.1 percent for the month.

Through the end of November, REIT total returns for 2015 were up 1.1 percent, while the S&P 500 Index was up 3.0 percent.

News