In the latest episode of The REIT Report: NAREIT’s Weekly Podcast, Steven Marks of Fitch Ratings discussed the firm’s latest research on liquidity in the REIT market and REITs’ access to the capital markets.
REITs Fall in September
REITs lost ground in September, as a combination of concerns about interest rate movements, property valuations and new supply appeared to weigh on investors.
The total return of the FTSE/NAREIT All REIT Index dropped 1.4 percent in September, while the S&P 500 index added 0.02 percent.
For the year through Sept. 30, the total return of the FTSE/NAREIT All REIT Index was 12.6 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 nine months of 2016.
REITs Reshaping Communities: Liberty Property Trust’s Kings Hill
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.
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).
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.
Fundamentally Speaking: T-Tracker Shows Good Operating Performance by REITs in Q2
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 showed good operating performance by REITs in the second quarter, and also points to “solid underpinnings” for future conditions in the REIT industry.
Schnure noted that funds from operations (FFO) for all Equity REITs rose a little more than 7 percent to $ 14.5 billion, which is more than 10 percent higher than a year ago.
Life Storage Phasing Out REIT’s Uncle Bob Brand
For Life Storage, Inc. (NYSE:LSI), the summer of 2016 has been anything but a time to slow down and relax.
Executives from Life Storage, the REIT formerly known as Sovran Self Storage, Inc., rang the New York Stock Exchange closing bell on Aug. 16 to commemorate the company’s recent rebranding and new stock ticker symbol.
Sovran changed its name to Life Storage following its acquisition of LifeStorage, LP, a privately owned self-storage operator, in July for approximately $ 1.3 billion.
REITs Thriving in Current Real Estate Environment
In the latest edition of Fundamentally Speaking, Calvin Schnure, NAREIT’s senior vice president for research and economic analysis, assessed the state of the REIT market at the mid-year point.
Economic news has been mixed so far this year, Schnure said, with overall gross domestic product data “fairly weak.”
Brexit Vote Doesn’t Slow REITs
In the latest edition of Quick Study, Brad Case, NAREIT’s senior vice president for research and industry information, said optimism among U.S. real estate investors seems to have increased in the wake of the Brexit vote in the United Kingdom.
