The State Of REITs: March 2022 Edition

Mar. 21, 2022 12:16 PM ET, , , , , , , , , , 1 Comment

Summary

  • The REIT sector failed to bounce back after a brutal January, as REITs only managed a -0.27% average total return in February.
  • Micro cap (+3.87%), mid cap (+0.37%) and small cap REITs (+0.13%) outperformed, whereas large caps (-3.41%) continued to suffer heavy losses.
  • Only 39.66% of REIT securities had a positive total return in February.
  • Hotel (+6.52%) and Diversified (+5.31%) outperformed all REIT property types in February. Infrastructure (-9.29%) and Health Care (-7.45%) REITs badly underperformed.
  • The average REIT NAV discount widened from -7.27% to -9.96% during February. The median NAV discount also widened from -5.7% to -8.86%.
  • This idea was discussed in more depth with members of my private investing community, Portfolio Income Solutions. Learn More »

Wooden houses with yellow arrows up. housing boom, property market growing, high demand for real estate, house prices rising concept

ThitareeSarmkasat/iStock via Getty Images

REIT Performance

After a sharp selloff in January (-5.66%), the REIT sector continued to decline in February (-0.27%) albeit at a slower pace. REITs handily outperformed the broader market in February as the S&P 500 (-3.0%), the Dow Jones Industrial Average (-3.3%) and NASDAQ (-3.3%) all endured

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This article was written by

2.77K Followers

Simon Bowler is the Chief Communications Officer at 2nd Market Capital Advisory Corporation, a Wisconsin-registered investment advisor specializing in the analysis and trading of real estate securities. Simon and his team are fiduciaries with over 50 years of collective experience as professional REIT analysts and asset managers.

They lead the investing group Portfolio Income Solutions where they convey REIT investment ideas through access to their actively managed portfolio, continuously updated spreadsheets, and extensive analysis. Stock selections in Portfolio Income Solutions utilizes discount to fair value, price dislocations, and arbitrages to achieve enhanced return potential. Learn more.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of UNIT either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

All articles are published and provided as an information source for investors capable of making their own investment decisions. None of the information offered should be construed to be advice or a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. The information offered is impersonal and not tailored to the investment needs of any specific person. Readers should verify all claims and do their own due diligence before investing in any securities, including those mentioned in the article. NEVER make an investment decision based solely on the information provided in our articles. It should not be assumed that any of the securities transactions or holdings discussed were profitable or will prove to be profitable. Past Performance does not guarantee future results. Investing in publicly held securities is speculative and involves risk, including the possible loss of principal. Historical returns should not be used as the primary basis for investment decisions. Commentary may contain forward looking statements which are by definition uncertain. Actual results may differ materially from our forecasts or estimations, and 2MCSC and its affiliates cannot be held liable for the use of and reliance upon the opinions, estimates, forecasts, and findings in this article. S&P Global Market Intelligence LLC. Contains copyrighted material distributed under license from S&P 2nd Market Capital Services Corporation(2MCSC) provides investment research and consulting services to the financial services industry and the financial media. 2MCSC does not provide investment advice. 2MCSC is a separate entity but related under common ownership to 2nd Market Capital Advisory Corporation (2MCAC), a Wisconsin registered investment advisor. Simon Bowler is an investment advisor representative of 2nd Market Capital Advisory Corporation.

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