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Chilton REIT Team

 
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  • The Modernization Of Student Housing
    Tue, Aug. 12 ACC, EDR 6 Comments

    Summary

    • Current student housing is old and poorly maintained.
    • New student housing is being built around the country at rates far above historical averages.
    • However, the new supply is replacing obsolete and alternate (non-purpose-built) supply.
    • Demand throughout recent recession shows resilience of the asset class.
    • Public Private Partnerships (PPP) between real estate professionals and budget-strapped universities will become popular. EdR Trust (EDR) and American Campus (ACC) are in excellent position to profit from this.
  • The REIT Bull Has Room To Run: Why 2014 Is Not 2007
    Tue, Jul. 1 1 Comment

    Summary

    • Underlying risks in investing in REITs are much lower today vs 2007, though valuation ratios are cheaper.
    • In 2007, companies with higher debt and development pipelines were rewarded with higher multiples.
    • Today, investors are forcing them to be more disciplined with the balance sheet.
    • Given the lower risk, REITs are a bargain today.
  • Greener Real Estate Can Create More Green For Investors
    Fri, Jun. 6 Comment!

    Summary

    • According to the US Department of Energy, commercial buildings account for 19% of energy usage, 40% of carbon dioxide emissions, and 88% of potable water consumption in the US.
    • An investment into making buildings more efficient using current technologies would result in a 30% estimated annual return via expense savings.
    • Lodging and office subsector ‘green’ indices outperformed the corresponding non-rated and FTSE/NAREIT subsector indices.
  • Healthcare REITs May Not Post Healthy Returns In A Rising Rates Environment
    Fri, May. 2 52 Comments

    Summary

    • Healthcare REITs have historically underperformed by 2000 bps in times of rising interest rates.
    • Oversupply is a looming risk for senior housing.
    • Medicare, Medicaid, and other uncontrollable demand drivers pose a risk for skilled nursing facility owners.
    • Healthcare REIT valuation metrics do not appropriately reflect the above risks.
  • The Chilton REIT Investing Primer
    Wed, Apr. 2 DEI 1 Comment

    Summary

    • This commercial real estate cycle will be one for the record books.
    • We are currently only just now entering the expansion phase of the cycle.
    • Top down analysis of the economy can enable active REIT managers to position portfolios for outperformance.
    • Bottom up analysis of REITs using Net Asset Value (NAV) and AFFO models can locate discrepancies in REIT pricing on the public market.
    • We expect total returns for REITs to average 6-8% over a full cycle, which lasts 7-10 years.
  • Industrial REITs: Time In The Sun Has Finally Come
    Editors' Pick • Tue, Mar. 4 EGP, PLD 10 Comments
  • Office REITs: Rental Rate Growth Poised For Gains
    Tue, Feb. 4 BXP, KRC 2 Comments
  • REITs: The Under-Owned Asset Class With A History Of Over-Delivering
    Thu, Jan. 2 CPT, EXR, GGP 5 Comments
  • Data Centers: The Nucleus Of The Digital Universe
    Editors' Pick • Dec. 3, 2013 CONE, COR, DFT 22 Comments
  • Cell Tower Companies: The Best Way To Invest In The Mobile Data Boom
    Nov. 4, 2013 AMT, CCI, SBAC 8 Comments
  • REIT Bricks And Retail Clicks
    Editors' Pick • Oct. 7, 2013 CBL, GRT, MAC 3 Comments