Tag Archives: Reits

Jun 18, 2020

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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Jun 11, 2020

Introducing the Dow Jones Equity All REIT Capped Index

On April 13, 2020, the Dow Jones REIT Index Series welcomed a new index—the Dow Jones Equity All REIT Capped Index. The strategy is a subindex of the Dow Jones Equity All REIT Index, which was launched in January 1997. Although both indices were designed to measure the performance of all publicly traded REITs, the…

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Mar 27, 2020

Variations in REIT Sectors – Time to Go Defensive

As of March 20, 2020, COVID-19 has disrupted the global economy, resulting in a 32% drawdown in the S&P 500® (total return) from its all-time high. The Dow Jones U.S. Select REIT Total Return Index, which is traditionally more defensive, also plummeted 42% from its peak. However, the responses within sectors of equity REIT have…

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Dec 19, 2018

REITs: A Rare Bright Spot in an Otherwise Difficult Year for Canadian Equities

Despite weak Canadian equity market returns this year, REITs have continued their long-term outperformance. The benchmark S&P/TSX Composite has fallen 8.5% on a total return basis through Dec. 18, 2018, while the S&P/TSX Capped REIT continues to be a bright spot, gaining 8.8% over the same period—a difference of over 17%. Market analysts tend to…

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Apr 23, 2018

Indexing Canadian REITs: A Look at the S&P/TSX Capped REIT Income Index

In a previous blog post, Evolution of Canadian REITs, we outlined the evolution of the Canadian REITs market. In this post, we will explore in detail the S&P/TSX Capped REIT Income Index, which is designed to serve as an income-producing strategy. The index seeks to measure the performance of REIT companies in the S&P/TSX Composite,…

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Mar 26, 2018

Evolution of Canadian REITS

The Canadian REITs industry will mark its 25th anniversary in June 2018. In light of this milestone event, it is worthwhile to review the evolution of the market as well as the characteristics of the asset class. Canadian REITs were born after the recessionary period in the late 1980s and early 1990s. There were five…

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Mar 1, 2018

Considering REIT Lease Durations in a Rising Rate Environment

U.S. REITS have been lagging broad U.S. equities. During the recent climb in 10-year Treasury yields from the 2018 low of 2.41% on January 2, to as high as 2.94% on February 21, the Dow Jones U.S. Select REIT Index declined 11.2%. Though we have found that REITS have generally fared well over full cycles…

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Oct 21, 2016

A long time coming: Real estate moves out from under the shadow of financials – Part 2

Interest rates have influenced the performance of REITs relative to bank shares Interest rates have a strong influence on equity REIT performance, as evidenced by the graphic below, which displays the relationship between the 10-year Treasury yield and the relative performance of the S&P 500 Banks Index to the S&P 500 Real Estate Investment Trusts…

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Sep 30, 2016

A long time coming: Real estate moves out from under the shadow of financials – Part 1

Real estate’s new sector status uncovers key differences between REITs and financial stocks As of Sept. 1, S&P and MSCI have established real estate as the 11th sector within the Global Industry Classification Standard (GICS) by separating it from the financials sector. Under this arrangement, real estate investment trusts (REITs) are now classified as follows:…

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Jun 22, 2016

Inside the S&P 500: The Real Estate Sector

Part of the power of the S&P 500 is analyzing the market and gaining insights into which stocks rising or falling.  The key to these analyses is GICS – the Global Industry Classification Standard – which is used to define the sectors and industries in the index. GICS is jointly maintained by S&P Dow Jones…

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