Why UBS thinks you should gradually increase exposure to global direct real estate By Investing.com
UBS's Investment Outlook: UBS recommends that investors gradually increase their exposure to global direct real estate, anticipating a recovery in transaction volumes from $600 billion in 2023 to approximately $800 billion in 2024, despite a challenging market environment.
Future Projections: The bank expects rental income growth to offset value corrections and predicts a total return of 4.5% in 2024, with returns exceeding the long-term average by 2025, driven by a significant rebound in transaction volumes.
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Florida to weigh proposal to end property taxes
Legislative Efforts to Reduce Property Taxes: Florida lawmakers are proposing various bills to alleviate the financial burden of property taxes, including a study for potential elimination, a $100,000 tax exemption, and an increase in the homestead exemption.
Potential Revenue Shortfall Concerns: Eliminating property taxes could lead to a significant revenue shortfall of approximately $43 billion, impacting essential services and disproportionately affecting low- and middle-income residents, while Governor DeSantis supports relief efforts without raising state taxes.
Real estate stocks log losses for the second straight week, upcoming rate decision gives no hope
Market Performance: S&P 500 real estate stocks experienced losses for the second consecutive week due to recession fears and uncertainty surrounding the Federal Reserve's interest rate decisions, with significant declines in various real estate indices and ETFs.
Company Updates: Crown Castle reported strong earnings and plans to divest its fiber segment, while other companies like UDR and Realty Income announced dividend increases; however, some REITs faced downgrades and notable losses amid market volatility.
More than 60% of the REITs report higher funds from operations in Q4 - report
Q4 Performance of U.S. Equity REITs: Over 60% of U.S. equity REITs reported year-over-year increases in their Q4 funds from operations, with aggregate FFO rising 11.35% to $20.87 billion and net operating income increasing by 5.46% to $29.77 billion. Healthcare REITs led the earnings season, showing strong performance in senior housing.
Dividend Trends: Equity REITs slightly raised their average dividend payouts to $0.48 per share in Q4, up from $0.47 the previous year, with notable increases announced by several companies including CubeSmart and W. P. Carey.
Real estate stocks down with import of timber, lumber, derivative products under scrutiny
Impact of Tariffs on Real Estate: President Trump's investigation into wood product imports could lead to increased tariffs, raising lumber costs by approximately $4,900 per home and overall builder costs by up to $10,000, negatively affecting S&P 500 real estate stocks.
Market Performance and Investor Sentiment: Despite recent losses in real estate indices, investor confidence appears to be rising with significant inflows into the Real Estate Select Sector SPDR Fund ETF, while Federal Reserve Chair Jerome Powell's remarks about the economy have contributed to speculation of an interest-rate cut.
Real estate stocks stand out as winners in February despite a rise in bear sentiment
Market Performance Overview: The S&P 500 real estate stocks rose approximately 5% in February, contrasting with a 1.4% decline in the overall S&P 500 due to increasing bearish sentiment and concerns over tariffs and inflation. Defensive sectors like real estate performed better amid declining long-term yields and mortgage rates.
Investor Sentiment and Company Updates: Real estate brokerage leaders expressed optimism for profitability and market growth, while many investors plan to expand portfolios in 2025. Notable company news includes Invitation Homes reporting steady earnings, American Tower facing an earnings miss, and Federal Realty Investment Trust acquiring a shopping center for $123.5M.
REITs pull about 50% less capital in January - report
Capital Raising Activities: REITs raised $3.96 billion in January, a 49.7% decrease year-over-year, with all funds coming from debt offerings according to S&P Global Market Intelligence.
Top Performers: Medical Properties Trust led the capital raising with $2.54 billion through senior secured notes, followed by Alexandria Real Estate Equities which raised $550 million in senior notes; health care REITs were the most active subsector.
Florida to weigh proposal to end property taxes
Legislative Efforts to Reduce Property Taxes: Florida lawmakers are proposing various bills to alleviate the financial burden of property taxes, including a study for potential elimination, a $100,000 tax exemption, and an increase in the homestead exemption.
Potential Revenue Shortfall Concerns: Eliminating property taxes could lead to a significant revenue shortfall of approximately $43 billion, impacting essential services and disproportionately affecting low- and middle-income residents, while Governor DeSantis supports relief efforts without raising state taxes.
Real estate stocks log losses for the second straight week, upcoming rate decision gives no hope
Market Performance: S&P 500 real estate stocks experienced losses for the second consecutive week due to recession fears and uncertainty surrounding the Federal Reserve's interest rate decisions, with significant declines in various real estate indices and ETFs.
Company Updates: Crown Castle reported strong earnings and plans to divest its fiber segment, while other companies like UDR and Realty Income announced dividend increases; however, some REITs faced downgrades and notable losses amid market volatility.
More than 60% of the REITs report higher funds from operations in Q4 - report
Q4 Performance of U.S. Equity REITs: Over 60% of U.S. equity REITs reported year-over-year increases in their Q4 funds from operations, with aggregate FFO rising 11.35% to $20.87 billion and net operating income increasing by 5.46% to $29.77 billion. Healthcare REITs led the earnings season, showing strong performance in senior housing.
Dividend Trends: Equity REITs slightly raised their average dividend payouts to $0.48 per share in Q4, up from $0.47 the previous year, with notable increases announced by several companies including CubeSmart and W. P. Carey.
Real estate stocks down with import of timber, lumber, derivative products under scrutiny
Impact of Tariffs on Real Estate: President Trump's investigation into wood product imports could lead to increased tariffs, raising lumber costs by approximately $4,900 per home and overall builder costs by up to $10,000, negatively affecting S&P 500 real estate stocks.
Market Performance and Investor Sentiment: Despite recent losses in real estate indices, investor confidence appears to be rising with significant inflows into the Real Estate Select Sector SPDR Fund ETF, while Federal Reserve Chair Jerome Powell's remarks about the economy have contributed to speculation of an interest-rate cut.
Real estate stocks stand out as winners in February despite a rise in bear sentiment
Market Performance Overview: The S&P 500 real estate stocks rose approximately 5% in February, contrasting with a 1.4% decline in the overall S&P 500 due to increasing bearish sentiment and concerns over tariffs and inflation. Defensive sectors like real estate performed better amid declining long-term yields and mortgage rates.
Investor Sentiment and Company Updates: Real estate brokerage leaders expressed optimism for profitability and market growth, while many investors plan to expand portfolios in 2025. Notable company news includes Invitation Homes reporting steady earnings, American Tower facing an earnings miss, and Federal Realty Investment Trust acquiring a shopping center for $123.5M.
REITs pull about 50% less capital in January - report
Capital Raising Activities: REITs raised $3.96 billion in January, a 49.7% decrease year-over-year, with all funds coming from debt offerings according to S&P Global Market Intelligence.
Top Performers: Medical Properties Trust led the capital raising with $2.54 billion through senior secured notes, followed by Alexandria Real Estate Equities which raised $550 million in senior notes; health care REITs were the most active subsector.
