REITs Dip in April; Fundamentals Remain Firm

REITs dipped slightly in April, but the industry continued to outpace the broader market on a year-to-date basis.

The total returns of the FTSE/NAREIT All REIT Index fell 1.7 percent in April, while the S&P 500 Index added 0.4 percent. Through the end of April, the total returns of the FTSE/NAREIT All REIT Index were 4.1 percent, while the S&P 500 Index was 1.7 percent higher. The yield on the 10-year Treasury note was 0.5 percent lower during the first four months of the year.

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Host Hotels CEO: International Business will Expand, but Remain Small Part of Overall Portfolio

W. Edward Walter, chairman and CEO of Host Hotels & Resorts (NYSE: HST), 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.

Walter outlined the lodging REIT’s international strategy, noting that Host started to invest outside North America in 2006 when it acquired a portfolio of hotels from Starwood Hotels & Resorts Worldwide, Inc. under brand names that included Westin, Sheraton, W, St. Regis and The Luxury Collection.

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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.”

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Brick-and-Mortar Stores to Remain Cornerstone of Retail, Study Shows

Brick-and-mortar stores continue to be customers’ preferred shopping channel, and are crucial in generating online sales for retailers, according to a new study by global management consulting firm A.T. Kearney.

According to A.T. Kearney analysis, 90 percent of all U.S. retail sales in 2013 were transacted in stores, and 95 percent of sales were accounted for by retailers with a brick-and-mortar presence.

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Attractive Real Estate Opportunities Remain in U.S. for Global Investors, Investment Manager Says

Sophia Banar, managing director with Forum Securities Limited, joined REIT.com for a video interview during REITWeek 2014: NAREIT’s Investor Forum, held in New York.

Banar covers U.S. real estate companies for Forum Securities. Additionally, she advises the firm’s global portfolio management team. Banar joined Forum Securities in April after serving as a portfolio manager with The Tuckerman Group, an affiliate of State Street Global Advisors that focused on real estate investment.

Sophia Banar

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Industry Veteran Says REITs Remain Low-Volatility Investments

Glenn Mueller, University of Denver professor and real estate investment strategist at Dividend Capital Group, joined REIT.com for a video interview during REITWeek 2014: NAREIT’s Investor Forum, held in New York.

Mueller was asked whether he still considers REITs to be low-volatility investments.

“They are much less volatile than the overall marketplace,” Mueller said.

He explained that REITs have historically been low-volatility investments. That changed temporarily during the financial crisis as a result of exchange-traded funds (ETFs), according to Mueller.

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