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National, regional & global portfolio structuring; advice; research.
1. Funds from Operations (FFO) payout
2. Occupancy & Tenant Diversification
3. Plans for growth
4. Debt, Cost of Capital & Risks
5. Dividend Growth
1. Avalon Bay / AVB
2. Federal Realty Trust / FRT
3. Simon Property Grp / SPG
4. Public Storage / PSA
5. Boston Properties / BXP
6. Taubman Centers / TCO
7. Ventas / VTR
8. East Group Properties / EGP
9. Essex Property Trust / ESS
"Blue chip, core quality holdings” or “sleep at night, confidence-inspiring companies” “investors should buy for (their) grandparents, parents, and children.”
US REITs have yielded a consistent annual income component of 8.09%, representing approx 60% of the REIT industry’s average annual total returns of about 13.72% from 1972-2012. In the last 10 years, REITs have done a better job protecting wealth than commodities; REITs have delivered 3 times the returns that commodities have without adding extra volatility. REITs do particularly well when they grow dividends faster than the rate of inflation. This has been the case in 19 of the 25 years from 1987-2012, when dividends rose approx 5.7% annually. This goes against conventional wisdom, which says that REITs do poorly when rates rise, so it depends upon how fast a REIT can raise rents, which in turn drive its earnings and dividends. Similarly, again conversely, rising interest rates and / or inflation have helped REIT returns in the past.
The volume of capital looking to invest in European real estate has doubled over the last decade from €250bn in 2006 to €515bn this year (2014).
US REITs raised a best-ever USD$73.3bn in 2012 through both the sale of equity shares & issuance of debt. Some 7 of 8 companies that have become REITs since early-2009 rose more after their conversions than in any other sector, except Corrections Corp of America (early-2013).
Japan had 35 REITs with a total Market Cap of USD$60bn (2013), while Singapore has 33 REITs with a market capitalization of $48.9bn (2014), compared with HK's 7 valued at $8.8bn (2013).
Most investor complaints about private non-traded REITs are because the valuations are not accurate & concerning misrepresentations about the liquidity of shares. The 2 largest sellers of non-traded REITs are LPL & Ameriprise Financial, which between them represent about 20% of the USD$10bn in annual sales of these products. At the end-2012 the State of Massachusetts charged LPL with dishonest & unethical business practices regarding its sales of REITs & found that LPL representatives received limited training on REITs.
General - Tony Milton MRICS+APREA (CREIF)
Thailand - Sine Mongkoladisai
Bulgaria - Dimitar Genchev