Student Housing REIT EdR Forecasting Continued Rent Gains
NAREIT T-Tracker Shows FFO Gains in 4th Quarter
In the latest edition of Fundamentally Speaking, Calvin Schnure, NAREIT’s senior vice president for research and economic analysis, said NAREIT’s T-Tracker series points to solid operating performances by REITs in the fourth quarter of 2015.
FFO Gains Fueled by External Growth, Says National Retail CEO
Craig Macnab, CEO of National Retail Properties, Inc. (NYSE: NNN), joined REIT.com for a CEO Spotlight video interview at REITWorld 2015: NAREIT’s Annual Convention for All Things REIT at the Wynn Las Vegas.
As of the third quarter of 2015, National Retail’s funds from operations (FFO) were 8.5 percent higher than the year before. Macnab said the gains resulted from maintaining a portfolio that’s about 99 percent occupied.
Quick Study: REIT Gains Underscore Favorable Conditions
In the latest edition of Quick Study, Brad Case, NAREIT’s senior vice president for research and industry information, said REIT market gains in October provided some comfort to investors and showed that conditions are in place for continued growth.
The total returns of the FTSE/NAREIT All REIT Index rose 6.1 percent in October, while the S&P 500 Index gained 8.4 percent. The yield on the 10-year Treasury note was up 0.1 percent for the month. As of Oct. 30, REIT total returns were up 1.3 percent for the year, while the S&P 500 Index was up 2.7 percent.
REITs’ Modest Gains in November in Line With Broader Market
REITs posted modest gains during November that were in line with the broader market, although year-to-date the sector continues to outperform by a solid margin.
The total return of the FTSE NAREIT All REITs Index was 2.3 percent in November. The S&P 500 Index rose 2.7 percent in November.
As of the end of November, the FTSE NAREIT All REITs Index had gained 25.8 percent in 2014, while the S&P 500 Index was up 14 percent.
Investment Strategist Highlights Fundamentals Driving REIT Share Gains
Glenn Mueller, a University of Denver professor and real estate investment strategist at Dividend Capital Group, joined REIT.com for a video interview at REITWorld 2014: NAREIT’s Annual Convention for All Things REIT at the Atlanta Marriott Marquis.
Mueller stressed that job growth has been a key indicator for real estate investors to consider. He explained that in 2014, average monthly employment growth averaged more than 200,000 jobs, compared with about 100,000 per month in the prior few years.
Quick Study: REIT Gains in October Continue Upward Historical Trend
In the latest edition of Quick Study, Brad Case, NAREIT’s senior vice president for research and industry information, noted that REITs continued to outperform the broader stock market during October with solid gains across most property types.
“It was another very strong month,” Case said. The FTSE NAREIT All REITs Index had a total return of 8.7 percent in October. The S&P 500 Index gained 2.4 percent for the month. Looking at year-to-date data, Case pointed out that while the S&P 500 has gained about 11 percent, REIT returns are close to 23 percent.
REITs Make Gains in October, Continue to Outperform Broader Market
REITs made gains in October and continued to outperform the broader stock market, supported by solid earnings reports and growing momentum in the economy.
The total return on the FTSE NAREIT All REITs Index was up 8.7 percent for the month after dropping 5.6 percent in September. The S&P 500 Index rose 2.4 percent in October. As of the end of October, the FTSE NAREIT All REITs Index had gained 23 percent, while the S&P 500 was up 11 percent.
REITs Make Gains in August
REITs picked up steam in August as the total return from the FTSE NAREIT All REITs Index gained 3.4 percent, slightly below the 4 percent increase in the S&P 500 Index during the same period.
As of the end of August, however, the FTSE NAREIT All REITs Index was up 19.8 percent for the year, compared to a 9.9 percent gain for the broader market.
Matt Werner, portfolio manager at Chilton Capital Management, noted that in August, “the REIT ascent continued thanks to another strong earnings season and further declining interest rates.”
REIT Returns Outpace Gains in Broader Market During First Quarter
Returns on equity REITs far outpaced gains seen in the broader market during the first quarter of 2014, and analysts expect solid fundamentals to continue to support the sector.
Total returns for the FTSE NAREIT Equity REITs Index gained just under 10 percent in the first quarter, compared with the 1.8 percent gain seen in the S&P 500 Index in the same period. Gains for the FTSE NAREIT All REITs Index stood at 8.6 percent in the first quarter.
REIT returns softened in March compared with the first two months of the year.