UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev | Next
Author: yodaorange Big red star, 1000 posts Feste Award Nominee! Feste Award Winner! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 77345  
Subject: REITs beat private real estate by 5%/year Date: 5/1/2013 2:02 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 18
Very thought provoking article in Institutional Investor today that claims public REITs beat large private real estate deals by 5% per year. [1] The claim is that large institutional investors do NOT like the pricing volatility in public REITs. The private properties have smoother valuations over time. This kind of reminds me of the argument of non-traded REITs which claimed smoother valuations.

From the brief article:


For the 30 years through December 2011, though, listed REITs returned an average of 11.95 percent annual compared with core private real estate funds’ 6.97 percent.


The article quotes Mike Kirby from Green Street and others that claim institutional investors will up their allocation to public REITs. If this occurs, it would be significant for REIT valuations. The public REIT market cap is NOT nearly large enough to fill up the real estate allocations for institutional funds. . .

Short article is worth your time . . .

Thanks,

Yodaorange


[1] Despite REITs’ Virtues, Institutions Still Favor Private Real Estate Funds</I
http://www.institutionalinvestor.com/Article/3198472/Despite...
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev | Next

Announcements

Related Boards
Real Estate Investing
This is a great board for Real Estate other than REITs.

Buying & Selling a Home
Get your personal advice about mortgages, agents, etc. here.
Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Managing Your Wealth
Our own TMFHockeypop from Rule Your Retirement fame on the TV show Managing Your Wealth.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement