Global fund managers offer thoughts on investing in REITs near and far.
Four Corners Property Trust Looking in New Directions
Four Corners Property Trust, Inc. (NYSE: FCPT), which spun off from Darden Restaurants Inc. in November 2015, sees significant external growth potential in the fragmented restaurant real estate sector, according to CEO Bill Lenehan.
At the time of the spinoff, the triple-net lease REIT’s portfolio included 300 Olive Garden restaurants, 104 LongHorn Steakhouse restaurants, 11 Bahama Breeze restaurants, two Seasons 52 restaurants and one Wildfish Seafood Grille restaurant.
REITs Officially Elevated to 11th GICS Headline Sector
Equity REITs and other publicly traded real estate companies were officially elevated to a new Real Estate Sector in the Global Industry Classification Standard (GICS), after the close of trading Sept. 16.
S&P Dow Jones Indices implemented the changes to coincide with their annual rebalance.
Equity REITs and other publicly traded real estate companies were moved out from the Financials Sector and into a standalone 11th sector. Mortgage REITs remain in the Financials Sector.
Real Estate Funds Can Expect More Capital Flows
In the the latest episode of The REIT Report: NAREIT’s Weekly Podcast, Steve Buller, portfolio manager with Fidelity Investments, discussed the impact of real estate being elevated to a new headline sector under the Global Industry Classification Standard (GICS) on the discipline of real estate investing.
Farmland Partners to Merge With American Farmland
Farmland Partners Inc. (NYSE: FPI) said Sept. 12 that it will acquire American Farmland Co. (NYSE: AFCO) in a stock-for-stock deal.
Farmland Partners’ Paul Pittman will continue as chairman and CEO of the new company, which will own more than $ 850 million of U.S. farmland assets spanning 133,000 acres.
GRESB Data Shows Broad Improvement in Real Estate ESG Performance
Real estate companies and funds are showing improvement across all aspects of environmental, social and governance (ESG) performance, according to the 2016 Global Real Estate Sustainability Benchmark (GRESB) Real Estate, Developer and Debt assessments.
“The global real estate sector is working to manage its carbon footprint, build resilience in the face of climate change and respond to more stringent environmental regulations,” said Nils Kok, CEO of GRESB.
REITs Will Gain Prominence from GICS Move
In the the latest episode of The REIT Report: NAREIT’s Weekly Podcast, Mike Grupe, NAREIT executive vice president for research and investor outreach, offered his perspective on the implications of real estate being elevated to a new headline sector under the Global Industry Classification Standard (GICS).
REIT Industry Veteran Ralph Block Dies
Ralph Block, a leading authority on REITs and an active participant in the industry for several decades, died on Sept. 6.
Block was the author of the book “Investing in REITs,” now in its fourth edition. He also authored The Essential REIT, a newsletter dedicated to REITs and REIT investing. In addition, Block was a regular contributor to REIT magazine, and he wrote weekly blog posts on REIT investing for SNL Financial.
REITs Dip in August
REIT returns dipped in August, but they continue to outpace the broader market on a year-to-date basis as fundamentals remain stable across the industry, analysts said.
The total return of the FTSE/NAREIT All REIT Index dropped 3.3 percent in August, while the S&P 500 index held steady, up 0.1 percent. For the year through the end of August, the total return of the FTSE/NAREIT All REIT Index was 14.2 percent, while the S&P 500 posted a total return of 7.8 percent. The yield on the 10-year Treasury note dropped 0.7 percent in the first eight months of 2016.
Industrial Real Estate Sector Enjoying Strong Year
In the latest episode of The REIT Report: NAREIT’s Weekly Podcast, Jack Rosenberg, national director of logistics and transportation with Colliers, discussed some of the latest trends and developments in industrial real estate.