Not All 2% Spreads Are Created Equal

Real estate investment spreads are healthier today with higher cap rates and cost of capital, enhancing long-term returns despite similar nominal spreads. Higher cap rates lead to more accretive organic growth, reinvestment, dividends, debt reduction, and buybacks compared to the low-rate environment of early 2022. The current 8% cap rate and 6% cost of capital environment are more favorable for REITs than the previous 6% and 4% scenarios.

Seeking Alpha • Feb 14, 2025

The State Of REITs: December 2024 Edition

The REIT sector bounced back from a rough October with a strong +3.19% average total return in November. Small cap (+4.19%), mid cap (+3.70%), and large cap (+3.39%) REITs averaged gains in November, while micro caps (-0.81%) finished the month in the red. 74.19% of REIT securities had a positive total return in November.

Seeking Alpha • Dec 26, 2024

RSPR: The Cycle Can Soon Favor REITs

REITs have struggled in recent years due to higher interest rates and concerns about commercial real estate defaults. The Invesco S&P 500 Equal Weight Real Estate ETF offers a unique equal-weighted approach to US real estate access. RSPR has outperformed other real estate ETFs with less risk, and its diversified portfolio provides exposure to various sectors within the real estate industry.

Seeking Alpha • May 26, 2024

Construction Spending Rises

The history of construction spending since 1993 reveals that this data tends to weaken prior to recessions. For a recent dip in Residential Construction attributed to the rise in mortgage rates, this indicator is charging higher.

Seeking Alpha • Nov 6, 2023

Opportunities Abound With Equal-Weight Sector ETFs

Reports made much of a small number of stocks accounting for massive portions of broader market returns early this year. In other words, concentration risk is again on market participants' radars.

ETF Trends • Jul 6, 2023