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The Modernization Of Student Housing
- 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
- 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!
- 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
- 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
- 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
- Office REITs: Rental Rate Growth Poised For Gains
- REITs: The Under-Owned Asset Class With A History Of Over-Delivering
- Data Centers: The Nucleus Of The Digital Universe
- Cell Tower Companies: The Best Way To Invest In The Mobile Data Boom
- REIT Bricks And Retail Clicks