REIT Outlook 2024 - Pdf Click Here REIT Outlook 2024 Brighter Prospects Ahead After Two Disappointing Years 2024 Return expectations –We expect REITs will generate 8-10% total returns in 2024, approximately half comprising of a cash dividend yield of ~4%. REITs are on track to generate about 3% total returns over 2023. This is slightly below our forecast of +5-7% for Y23 a year ago as the REIT sector and capital markets have declined as the Federal Reserve has raised interest rates to curb inflation. In 2024, we assume there will be an economic … [Read more...]
Comparing BREIT and Public REITs October ’23
November 7, 2023 by
Comparing BREIT and Public REITs October '23 - pdf click here October 2023 Comparing BREIT’s Operating Performance/Management Fees to Public REITs Operational Performance is likely to be the biggest driver of future RE Returns We believe future returns from commercial real estate (CRE) investments are likely to accrue more from operational gains and less from cap rate compression and/or the use of high leverage because of the likelihood of higher interest rates in the future than those that prevailed over 2008 - 2021. Most publicly traded REITs are … [Read more...]
Office Notes March ’23
April 10, 2023 by
Office Notes March '23 - pdf click here April 10, 2023 Summary: Office Properties seem to be caught in a Perfect Storm. While we hear of general concerns about CRE and REITs, we do regard many of the challenges being faced by offices to be specific to offices alone and that office exposure is a limited REIT problem because they are minimally represented in the NAREIT Index. This contrasts with offices representing a large part of the overall commercial real estate market. Office woes seem likely to remain in the headlines for some time; however, we believe they will see a revival in the … [Read more...]
REIT Outlook 2023
December 5, 2022 by
REIT Outlook 2023 - Pdf Click Here REIT Outlook 2023 Yield and Diversification Appeal in Uncertain Environment 2023 Return expectations –We expect REITs will generate 5-7% total returns in 2023, approximately two-thirds comprising a cash dividend yield of ~4%. REITs are on track to generate around -25% total returns over 2022. This is well below our forecast of +8-10% for Y22 which we made one year ago. The sector as well as both debt and overall equity markets have weakened principally because the Federal Reserve has aggressively raised … [Read more...]
REIT Whitepaper – Unsecured Debt Issuance
REIT Whitepaper - pdf click here REIT Unsecured Debt Issuance – Advantage Public REITs There has been a flurry of Unsecured Bond issuance by the Publicly Traded REITs YTD. This has strengthened corporate balance sheets and provides the REITs with a competitive advantage at a time when other CRE borrowers are struggling to access new/refinance existing debt. The collective public REIT balance sheet is in excellent shape with record low levels of leverage and ample … [Read more...]