Quick Study: REITs Post Above-Average Historical Returns in 2014

In the latest edition of Quick Study, Brad Case, NAREIT’s senior vice president for research and industry information, highlighted the REIT market’s outperformance of the broader stock market during 2014. He also suggested that investors pay close attention to supply conditions in 2015.

The FTSE NAREIT All REITs Index had a total return of 27.2 percent for 2014, compared to a return of 13.7 percent for the S&P 500 Index.

News

BMO Analyst Says Diminishing Interest Rate Concerns Boosted REITs in 2014

Paul Adornato, managing director with BMO Capital Markets, joined REIT.com for a video interview at REITWorld 2014: NAREIT’s Annual Convention for All Things REIT at the Atlanta Marriott Marquis.

According to Adornato, the big story for REITs during 2014 was their “tremendous performance” compared with the overall market. Although concerns about interest rate increases did impact REITs earlier in the year, REITs “sailed away” once investors determined that those increases were not imminent, he said.

News

CMBS Market Boosted By Positive Fundamentals as 2014 Comes to Close

The commercial mortgage backed securities (CMBS) market is expected to end 2014 on solid footing, with loan delinquency rates falling and new issuance likely to surpass last year’s level, according to market observers.

The CMBS delinquency rate fell to 5.8 percent in November, its lowest level in five years, Trepp, LLC reported. As of Dec. 1, delinquencies have fallen 163 basis points, down from 7.4 percent in December 2013, according to Trepp.

News

CubeSmart CEO Says 2014 Capital Raising Funding Acquisitions and Development

Christopher Marr, president and CEO of CubeSmart L.P. (NYSE: CUBE), joined REIT.com for a CEO Spotlight video interview at REITWorld 2014: NAREIT’s Annual Convention for All Things REIT at the Atlanta Marriott Marquis.

CubeSmart owns and operates self-storage facilities in the United States and Puerto Rico. At the end of the third quarter, CubeSmart owned 390 facilities with an occupancy level of 91.5 percent.

News

BAML Banker Reviews REIT Capital Market Activity in 2014

Jeff Horowitz, global head of real estate, gaming and lodging at Bank of America Merrill Lynch, joined REIT.com for a video interview at REITWorld 2014: NAREIT’s Annual Convention for All Things REIT at the Atlanta Marriott Marquis.

Horowitz gave an overview of REIT capital market activity in 2014. According to Horowitz, REITs have raised about $ 55 billion this year, comprised of $ 25 billion in equity, $ 2 billion in preferred stock and the remainder in unsecured debt.

News

BAML Banker Reviews REIT Capital Market Activity in 2014

Jeff Horowitz, global head of real estate, gaming and lodging at Bank of America Merrill Lynch, joined REIT.com for a video interview at REITWorld 2014: NAREIT’s Annual Convention for All Things REIT at the Atlanta Marriott Marquis.

Horowitz gave an overview of REIT capital market activity in 2014. According to Horowitz, REITs have raised about $ 55 billion this year, comprised of $ 25 billion in equity, $ 2 billion in preferred stock and the remainder in unsecured debt.

News

REITWorld 2014: Capital Flows into REIT Sector Remain Robust, Panelists Says

Capital flows into the REIT sector from domestic and international investors remain robust, according to a panel of industry figures at REITWorld 2014: NAREIT’s Annual Convention for All Things REIT.

The panelists also said the limited supply of real estate assets is pushing valuations higher.

“Capital is chasing a relatively few number of assets,” said Louis Taylor, senior vice president at Paulson & Co., Inc. “Prices are fair to pretty full.”

News