Real Estate Investment Trusts (REITs) are a popular investment vehicle for people looking to invest in the real estate market. One type of REIT that has gained popularity in recent years is the multi-sector or diversified REIT. These REITs offer investors exposure to a wide range of real estate assets across different sectors, providing diversification and potentially higher … [Read more...] about Multi-Sector REITs
Articles
Canada Celebrates 30 Years of REITs
REITs in Canada are celebrating their 30th anniversary in 2023. REITs are an investment tool that lets people invest in real estate without managing the properties. They are popular in Canada because of their diversification and steady income potential. Income Opportunities REITs have faced skepticism from investors, but they have become an essential part of the Canadian … [Read more...] about Canada Celebrates 30 Years of REITs
COVID’s Impact on REITs
COVID-19 has been a significant determinant of investment performance since 2020. It is now one of several forces impacting returns on various types of investments, from stocks to REITs. Inflation, interest rates, recessions, energy prices, geopolitical turmoil, and the vicissitudes of the COVID pandemic have whipsawed stocks and REITs during the three-year period. The Dow … [Read more...] about COVID’s Impact on REITs
Measuring How REITs Create Value: ROIC vs WACC
For those who understand the unique advantages of REIT investing, the question of which REITs to own requires careful consideration. There are many ways to compare REITs that investors can use to populate their portfolios. One classic method uses the metrics that determine Economic Value Added (EVA), which expresses a REIT’s true economic profit. You can think of it as the … [Read more...] about Measuring How REITs Create Value: ROIC vs WACC
Boston Properties REIT
Overview Boston Properties (NYSE: BXP) is a self-managed, self-administered office REIT. It owns, manages, operates, and develops Class A office properties in primarily five markets: Boston, Los Angeles, New York, San Francisco and Washington, DC. The company was founded in 1970 and went public in 1997. The company concentrates on developing premium Central Business District … [Read more...] about Boston Properties REIT
REITs and COVID-19
Very few industries have been left unscathed by the COVID-19 pandemic, and REITs are no exception. As you would imagine, the deep recession we find ourselves in has put a damper on demand within most real estate sectors, and prices have declined significantly in the first half of 2020. As of June 30, the FTSE Nareit All REITs Index showed a year-to-date total return of -15.01%. … [Read more...] about REITs and COVID-19
Taxable REIT Subsidiaries
One of the major attractions of real estate investment trusts is that they pass-through income that sidesteps corporate double taxation. In order to qualify for tax benefits, REITs must comply with a set of asset and income tests. A taxable REIT subsidiary (TRS) is a corporation that gives REITs some compliance wiggle room, enabling REITs to compete with other real estate … [Read more...] about Taxable REIT Subsidiaries
Beta Explanation
Real estate is often called an “alternative” investment. That means it is an alternative to investments in stocks and bonds. Why is it good to have an alternative investment? The answer has to do with risk, reward, and a statistic called beta (β). In this article, we will define beta and explore why it is important to your investment strategy. We will also see how to … [Read more...] about Beta Explanation
REITs vs Real Estate Options
This is the seventh in our series of articles of ways to invest in real estate. Real estate options come in two flavors: Over-the-counter (OTC) options to buy property and exchange-traded options on REITs and REIT exchange-traded funds. OTC Options OTC options are private contracts between a buyer and seller. They are quite different from exchange-traded futures. They … [Read more...] about REITs vs Real Estate Options
REITs vs Real Estate Swaps
This is the eighth and last in our series of articles of ways to invest in real estate. Swap contracts come in a variety of types, including the total return swap, equity swap, contract for difference and credit default swap, among others. In this article, we’ll address the use of total return swaps to replicate the return one would earn on a REIT index ETF (exchange-traded … [Read more...] about REITs vs Real Estate Swaps