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 Jones … [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