Baa - rated bond yields have typically been about 130 basis points higher
than equity REIT dividend yields, and the spread between them has usually been between 80 and 180 basis points.
Though please note that mortgage REIT dividends are fair less consistent
than equity REIT dividends.
As you've probably figured out, mortgage REITs are more leveraged, meaning that they're riskier investments
than equity REITS.
These are less common
than equity REITs, and are arguably less tangible.
Not exact matches
«By allowing investors and their financial advisers to efficiently learn about our
REITs and invest directly, there is less cost involved in raising
equity capital
than there would be through more traditional public distribution formats,» said Amy Tait, chairman, CEO and co-founder of Broadstone, in a statement.
There are also far fewer mortgage
REITs than there are
equity REITs.
REITs including distributions returned less
than equities?
CC — When you said
REITs historically offered a lower return
than equities, is that total return (including reinvested distributions)?
This is perhaps the most compelling reason to own real estate directly as opposed to owning
REIT stock, especially during periods where
equities may be fully - priced and potentially facing more near - term downside risk
than upside potential.
Another argument against is that homeowners are already overweight in real estate based on their home
equity, and that the volatility of
REITs is higher
than the rest of the stock market.
So, if you have 60 % in
equities, and the U.S. portion of
equities is 40 % of the total portfolio,
REITs should be no more
than 10 %.
Masenga has more
than 35 years of experience representing pension funds and their separate account advisors, commingled funds, banks, life insurance companies, private
equity funds,
REITs and other institutional real estate investors and lenders.
In all, public
REITs have issued more
than $ 5 billion in new common
equity in 2003, already surpassing 2002.
In effect, investors will pay more for
REITs to obtain lower but more stable returns
than other
equities.
It's mid-February, and U.S. - based publicly - traded
REITs have already issued more
than $ 1 billion through secondary
equity offerings, according to SNL Financial...
With health care
REITs recently going on a more
than $ 20 billion spending spree, private
equity firms could be the next big investors in seniors housing.
The four major
REITs — Public Storage, Extra Space Storage, CubeSmart and Sovran Self Storage — are able to take down the large deals of more
than $ 75 million, but there are aggressive bidding wars by private
equity for the smaller portfolios, Boorstein says.
By using that
equity capital, a
REIT can bid significantly higher prices
than non-
REIT buyers when competing for properties.
Mergers sometimes have mixed long - term results, but Regency Centers appears to be on its way to becoming a stronger
REIT than it was before its merger with
Equity One was finalized in March.
Designed for real estate investment trust investors and others needing
REIT information, REITMonitor is a CD - ROM program for Windows 95 that tracks more
than 250
REITs and 18,000 properties held by
equity REITs.
Industrial Property Trust, a distribution - facility
REIT sponsored by Black Creek Group of Denver, so far has raised $ 1.74 billion of
equity, roughly $ 23 million more
than Blackstone Group's
REIT.
Equity investors are happy to give more money to
REITs to invest: most of the investment trusts are trading at prices higher
than the accounting value of their assets, meaning stock issuance is relatively cheap for them.
REITs have found their own sources of
equity, as it were, other
than stock sales.
Recognizing these trends, investors poured more
than $ 1 billion of new
equity and debt into the healthcare
REIT sector last year, according to Fitch, with institutional investors contributing the largest chunk of capital.
Mitchell Kiffe, senior managing director at CBRE Capital Markets, points to a broad decline in the
REITs» stock prices as tied to NAV, rather
than any notion that private
equity and institutional investors are simply crowding out the
REITs.
Overall, real estate indicators are expected to be better
than their 20 - year averages this year, except among the following indicators that are forecasted to perform worse: commercial property price growth,
equity REIT returns, retail availability rates, and single - family housing starts.
Investors have increased their spending here by 50 percent in that time frame, with more
than $ 958 million in office sales transactions this year, including the $ 372.5 million sale of US Bancorp Tower to TPF
Equity REIT at a price of $ 338 per sq. ft. Almost 50 percent of the 1.5 million sq. ft. under construction is pre-leased, and tenants looking for large blocks of space are being forced to wait until next year.
In Arizona it is extremely difficult for a small investor to get a good deal at a trustee sale (since» 11) because you are bidding against
REITs and private
equity firms that drive the price up to higher
than market value in many cases.
Investors should never lose sight of the fact that real estate is an actively managed asset: a high - quality, well - managed property — which describes most properties owned by
REITs, certainly including retail properties — is more likely to maintain strong occupancy and favorable NOI growth
than a property whose owners are merely waiting out the life of their private
equity fund before selling.
The FTSE NAREIT All
Equity REIT Index, a benchmark of U.S. real estate investment trusts (
REITs), rose 19.7 percent in 2012, while the FTSE EPRA / NAREIT Developed ex-US Index, a benchmark of
REITs and
REIT - like companies from developed countries other
than the United States rose 38.6 percent.
Large
equity REIT companies don't have the flexibility or speed that smaller crowdfunding developers have so I wouldn't be surprised if real estate crowdfunding investors see returns a percent or two higher
than REITs on an annualized basis.
In 2010, U.S.
REITs completed 91 secondary
equity offerings, raising more
than $ 23.6 billion.
For more
than 20 years, he has conducted and overseen due diligence for an array of asset types and clients, including institutional and private
equity investors,
REITs, lenders and owners.
All real estate indicators are forecast to be better
than their 20 - year averages in 2015, with the exception of four indicators expected to be worse —
equity real estate investment trust (
REIT) returns, retail availability rates, retail rental rate change, and single - family housing starts.