Rising Rates Hurt Real Estate Stocks

According to a recent article in The Wall Street Journal, the Fed’s rate-hike program is “upending real-estate investment trusts and other stocks with juicy dividend yields that had been thriving in a lower interest-rate environment.” While investors tend to purchase shares of real-estate firms and other stocks like utilities for “safe, bond-like returns,” the article reports, as the Fed implements further tightening, “the payouts on U.S. government bonds are rising and forcing investors to consider… Read More

Real Estate Stocks Not Drawing Investors

Investors hate real estate investment trusts, which have lagged the S&P 500 by more than 15 percentage points over the past 12 months, according to a recent article in The Wall Street Journal. However, they love private real estate funds, “which don’t trade on the market and so never are valued at a discount to their assets.” WSJ reports that institutions and rich investors channeled $71 billion in equity capital into private real estate funds that… Read More

REIT Outperforms Through Active Management

As active stock managers continue to face competition from low-cost index funds, some firms have managed to outperform benchmarks by using “specialized expertise and fundamental research in sectors like real estate and energy,” according to an article in Institutional Investor. The article cites the example of Cohen & Steers, a firm that has managed real estate investment trusts since the 1980s, which is “beating index fund rivals as many have been hit hard by problems… Read More