Home Archives for August 2019

Month: August 2019

The Role of Real Estate in Pension Funds

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Pension, endowment, and foundation funds control over $9 trillion in total assets, with nearly $800 billion invested in real estate. Most pension funds that invest in real estate, on an asset weighted basis, invest in real estate using a blend of REITs and private real estate investment. Investing in both REITs and private real estate can be a powerful risk management tool.

Carter Validus Mission Critical REIT I and II Merge to Maximize Stockholder Value

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Michael Seton, president and CEO of Carter Validus Mission Critical REIT, joined Nareit in New York for a video interview at REITweek: 2019 Investor Conference.

Seton said that as a diversified REIT, Carter Validus Mission Critical REIT likes the data center and medical sectors because they make up an estimated 25% of U.S. gross domestic product (GDP).

“We think it gives us a lot of opportunity to both buy assets as well as to have our assets grow in value over time,” Seton said.

China Trade Tensions Have Not Had a Major Impact on Rayonier’s Export Market Outlook

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David Nunes, president and CEO of Rayonier, Inc. (NYSE: RYN), joined Nareit in New York for a video interview at REITweek: 2019 Investor Conference.

Nunes said that trade tensions with China have not necessarily impacted Rayonier’s export market outlook, and that China still has a large need to import wood. Since the REIT has exclusive exposure in New Zealand, in fact, he said that country has benefited from some of the trade issues.

FTSE Nareit All REITs Index Up 1.6% in July

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The total returns of the FTSE Nareit All REITs Index rose 1.6% in July, while the S&P 500 gained 1.4%. The total returns of the FTSE Nareit Mortgage REIT Index rose 2.3%, while the yield on the 10-year Treasury note was flat in July.

For the year through July 31, the FTSE Nareit All REITs Index gained 20.6% versus 20.2% for the S&P 500.

David Rodgers, senior analyst at Baird, noted that “we’re seeing really good later cycle fundamentals in both demand and supply generally. We’re on a long tail of the economy and REITs should continue to benefit.”