Salient to Investors: DJ Busch at Green Street Advisors said the Washington Prime/Glimcher Realty Trust deal may spark further consolidation among owners of “B” malls as there are many benefits to scale. Jerry Bruni at J.V. Bruni said lower-tier malls are a better bargain than pricey luxury properties, and owning the
READ MORE... →Salient to Investors: Inflows into real estate ETFs in 2014 are 43 percent more than all of 2013. Bloomberg said in 2014, 31 percent of money going into US sector-focused ETFs was for real estate. Jim Sullivan at Green Street Advisors said the bond market correctly indicates an OK environment
READ MORE... →Salient to Investors: Mortgage REITs yield 13 percent versus 3.8 percent for T-Bonds. In 2013 mortgage REITs lost 3 percent on average even after factoring in double-digit dividend yields – versus 30 percent for the S&P 500. Michael Widner at KBW Bank said the average mortgage REIT trades at a
READ MORE... →Salient to Investors: Brad Kinkelaar at Pimco said: The underperformance of many high-dividend stocks in the past 8 months shows a sentiment shift already is under way. If rates continue to rise through 2014, albeit gradually, telecom, utility and REITs should continue to underperform the market. Look for stocks with
READ MORE... →Salient to Investors: Robert Gorman at TD Wealth said: The 3-yr period of sharp underperformance for Canada is coming to a close Dividend stocks will continue to rule but resource stocks will do comparatively better after showing signs of bottoming out. The S&P/TSX Composite Index and the S&P 500 will
READ MORE... →Salient to Investors: The Bloomberg mall REIT index has fallen 5.4 percent in 2013, the worst performing part of US property stocks, on sluggish retail sales and limited opportunities to expand, after posting the biggest increases from 2009 through 2012. Hoteliers and self-storage landlords are the top-performing REIT sectors in 2013.
READ MORE... →Salient to Investors: JPMorgan Chase said REITs may have needed to sell about $30 billion of government-backed mortgage securities in just one week last month to maintain the amount of borrowing relative to their net worth. Bryan Whalen at TCW said REITs have been one of, if not the biggest contributors
READ MORE... →Salient to Investors: Property purchases by U.S. REITs are likely to be curtailed as a tumble in share prices makes a key source of capital costlier. Jim Sullivan at Green Street Advisors said for most property types, we have hit the pause button and expect REIT executives to be very careful with respect
READ MORE... →Salient to Investors: Marc Faber at the Gloom Boom & Doom Report says: High-end assets from stocks to art to real estate are in a bubble caused by central bank money-printing. This money doesn’t increase economic activity and asset prices in concert, instead creates dangerous excesses in countries and asset
READ MORE... →Salient to Investors: Jason Stewart, an analyst at Compass Point Research & Trading Interest rates moving higher and Fed talk about tapering QE much earlier than the market thought have sent mortgage REITs lower. Michael Widner at Keefe, Bruyette & Woods said the bond markets have over-reacted to Fed comments,
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