Tag Archives: U.S. REITs
Breaking the Market Cap Weight with an Index
When people talk about indexes, they are usually referring to market-cap weighted indexes. Market-cap weighting is based on price and outstanding number of shares. One simply takes the number of shares outstanding and multiplies them by the share price to arrive at market cap. This calculation results in the biggest companies commanding the largest weights….
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Transformational Change in the REIT Industry
The economic and societal effects of the COVID-19 pandemic accelerated secular trends that have been reshaping the commercial real estate industry for years. Core U.S. REIT sectors such as Retail, Office, and Residential, which once dominated the REIT landscape, have ceded ground to specialized REITs—particularly those owning data centers and cell towers. Industrial REITs have…
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Rising Rates Environment Doesn’t Hurt All REITs
In a positive sign for the U.S. economy, the Federal Reserve raised the federal funds target rate in December 2016 and penciled in another three hikes in 2017. While investors may welcome higher interest rates earned from their cash deposits, high-yielding instruments that carry debt can be adversely affected due to higher borrowing costs. Conventional…
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Considerations for a Global Approach to Property Investing
While U.S. REITs have garnered a lot of attention in recent years and become quite a popular investment category, comparatively little attention has been paid to real estate securities based outside of the U.S., despite significant development in international markets. In February 1995, just three markets—Australia, the Netherlands, and the U.S.—were represented in the S&P…
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