Three years ago—when the Fed began raising interest rates to help stem high inflation—a valuation gap emerged between public and private real estate as evidenced by the implied cap rate from Nareit’s ...

Small-cap financials and real estate sectors may benefit most from Fed rate cuts, boosting sector-specific ETFs. Tech and healthcare remain resilient, while consumer discretionary small caps could see ...

Valuing a real estate investment trust (REIT) requires a clear understanding of advanced financial metrics. Unlike other investment types that use metrics like earnings per share (EPS) and ...

Conventional wisdom has long said: where interest rates go, cap rates soon follow. In other words, when the cost of capital is high, so too is the ratio of a property’s net operating income to its ...

Ask a broker what they sold a property for, and the answer is just as likely to be a percentage as a dollar figure. Commercial real estate lives and dies by the capitalization rate. The simple ...

Over the past few years, we have observed an inverse relationship between share prices in the REIT sector and interest-rate movements. We believe a major reason is that all commercial real estate ...

When discussing a REIT, the net income is irrelevant, as the most important metrics are the FFO and AFFO. I generally like the way the Canadian real estate companies report on their AFFO results, as ...

XLRE holds data center REITs including Equinix and Digital Realty that benefit from AI infrastructure spending. Declining interest rates compress cap rates and raise property valuations through lower ...