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
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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
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