REIT Rankings Best Real Estate Investment Trust Rankings – REIT Rankings
REALpac is Canada’s senior national industry association for owners and managers of investment real estate, with members that include publicly traded real estate companies, REITs, private companies, pension funds, banks and life insurance companies with investment real estate assets each in excess of $ 100 million.
REIT returns lost ground in the first half of 2015, in part over expectations of the potential market impact of rising interest rates.
For the year to July 6, total returns from the FTSE/NAREIT All REIT Index declined 3.2 percent. The S&P 500 was up 1.5 percent during the same period. The yield on the 10-year Treasury note gained 0.1 percent during that time.
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.
Bob O’Brien, partner and U.S. real estate services leader at Deloitte, joined REIT.com for a video interview during REITWise 2015: NAREIT’s Law, Accounting and Finance Conference held in Phoenix.
O’Brien discussed the rise in Chinese foreign investment , as well as the possibilities for a REIT regime in China.
O’Brien noted that Chinese investment in the United States has increased about seven-fold in the past five years, and real estate accounts for a significant portion of that growth.
Nils Kok, founder and executive director of the Global Real Estate Sustainability Benchmark (GRESB), joined REIT.com for a video interview at NAREIT’s 2015 Leader in the Light Working Forum in Reston, Va.
GRESB is an industry-driven organization that assesses the sustainability performance of real estate portfolios around the globe. Kok noted that during the past 18 months, he has observed an increasing interest in “green bonds” from fixed-income investors. The proceeds from these bonds are used to finance sustainability initiatives.
Steve Shigekawa, managing director at Neuberger Berman, joined REIT.com for a video interview at REITWorld 2014: NAREIT’s Annual Convention for All Things REIT at the Atlanta Marriott Marquis.
Shigekawa noted that the biggest surprise for the REIT industry during 2014 has been the decline in interest rates.
“At the beginning of the year, the 10-year Treasury note was 3 percent. At the time, the consensus view was that interest rates would go higher, which would be a headwind for the REIT market. What we’ve actually seen is the opposite,” he observed.
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.
Lisa Sarajian, managing director with Standard & Poor’s Rating Services, joined REIT.com for a video interview at REITWorld 2014: NAREIT’s Annual Convention for All Things REIT at the Atlanta Marriott Marquis.
S&P’s annual report on the REIT industry offered a positive outlook for the coming year. Sarajian attributed the optimism to a strengthening economy, which is building up business and consumer confidence. As a result, companies are enjoying “solid” operating fundamentals, according to Sarajian. She noted that occupancy rates have improved for all sectors.
Matt Werner, portfolio manager at Chilton Capital Management, joined REIT.com for a video interview during REITWeek 2014: NAREIT’s Investor Forum, held in New York.
In January, Chilton launched the Chilton Realty Income & Growth Fund, which invests in equity REITs and other real estate-related entities. Werner said the fund operates a “top-down process” that considers geographic regions, property types, fundamentals and demographic trends. The information is then entered into Chilton’s proprietary earnings models, which then builds a target price, Werner explained.
Byron Boston, president, CEO and co-chief investment officer of Dynex Capital, Inc. (NYSE: DX), joined REIT.com for a CEO Spotlight video interview during REITWeek 2014: NAREIT’s Investor Forum, held in New York.
Boston was asked to explain the investment philosophy behind the mortgage REIT.
“Our overall philosophy is one of executing a simple strategy with a keen eye on managing our overall risk exposure,” he explained.
