WealthManagement Magazine | May 27, 2016|
So far this year, U.S. real estate investment trusts are handily beating the Standard & Poor’s 500 stock index, as income-oriented investors remain drawn to the trusts’ often-juicy yield.
Two factors are driving the performance: continued low interest rates and a rebound in the physical real estate market, whether residential or commercial. The MSCI US REIT Index Total Return is up 4.17 percent as of mid-May, versus the S&P 500 year-to-date return of 0.41 percent.
ReKeithen Miller, portfolio manager with Palisades Hudson Financial Group, said strength in the multi-family apartment units and mall properties are supporting the equity REITs tied to physical properties. Another tailwind: Commercial spaces are filling up as the unemployment rate drops.
The time (at Blue Vault's 2nd Annual Broker Dealer Educational Summit) proved extremely informative.