The Larger Story Behind REITs’ Operating Performance

March 6, 2017

The Larger Story Behind REITs’ Operating Performance

WASHINGTON, DC–Q4 funds from operations and net operating income all point to a real estate cycle that still has room to run, says NAREIT’s Calvin Schnure.

March 2, 2017 | by ERIKA MORPHY | GlobeSt.com

WASHINGTON, DC–Fourth quarter 2016 FFO of listed US Equity REITs recorded a 7.4% gain compared to the third quarter of 2016 and a 20.5% gain from the fourth quarter of 2015, according to NAREIT’s Total REIT Industry Tracker Series (aka its T-Tracker series). The T-Tracker is quarterly composite performance measure of the entire US listed REIT industry.

But unless you are a REIT investor or industry analyst, why should you care about this particular metric? This isn’t, after all, the widely-watched quarterly or monthly REIT returns.

And the answer to that: in many ways, the T-Tracker provides a more realistic assessment of REITs and commercial real estate prices. REIT stock prices, like all stocks, can be influenced by a number of non-industry matters. The T-Tracker, by contrast, looks at REITs’ earnings growth — which ultimately show whether or not value is being created.

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Gil Armour, CFP
February 3, 2016

I have been using Blue Vault Partners for the past five years.  I have found them to be a valuable, unbiased resource when it comes to evaluating and comparing non-traded REITs.  The reports help me analyze which sponsors are doing a responsible job of managing their offerings.  This allows me to limit my REIT recommendations to only the most competitive products, and then track those REITs throughout their life cycle.