NEWS AND UPDATES
The State of REITs: September 2026 Edition
REITs had a very rough August with an average total return of -4.48%. Micro caps (-7.87%) and small caps (-4.80%) performed very badly in August. Large cap (-3.30%) and mid cap REITs (-3.52%) were also in the red, albeit with somewhat more modestly negative total...
Market Commentary | September 11, 2026
Where the Action Is
Two related topics have come to heavily influence our investment decisions in recent years. One is the level and direction of interest rates. The second is the environment for Merger and Acquisition activity in the real estate/infrastructure universe.
Market Commentary | August 24, 2026
Maintaining a Full-Spectrum View on Investment Themes
While we never deviate too far from our real estate focus, we sometimes get more excited about a particular sector’s pricing trend. Is it expensive or cheap? How can we participate?
The State of REITs: August 2026 Edition
After strong gains during each month of the 2nd quarter, REITs dropped back slightly in July with an average return of -0.49%. REITs outperformed the NASDAQ (-3.2%) but fell short of the S&P 500 (-0.1%) and the Dow Jones Industrial Average (+0.4%). Year-to-date REITs are outperforming the broader market with an average return of +13.81% compared to smaller gains from the Dow (+10.2%), S&P 500 (+10.1%) and NASDAQ (+9.5%).
REIT Total Return Portfolio Update: 10-year Anniversary
10 years ago, we set out to prove that active management can outperform passive investing. On 7/1/16, we commenced trading in the REIT Total Return (RTR) portfolio with a goal to maximize total return and beat the REIT index. Academic institutions have drilled...
Market Commentary | July 20, 2026
Forecasting Future Growth
The broader stock market performed well in the first six months of 2026. More importantly, for the first time in a long time, REITs (VNQ) delivered in equal measure with the NASDAQ Composite, S&P 500, and the Dow Jones Industrial.
The State of REITs: July 2026 Edition
REITs are now on a 3-month winning streak, adding another +3.08% average return in June and reaching a +13.66% total return over the first half of 2026.
The State of REITs: June 2026 Edition
REITs built upon a very strong April performance with another +2.53% average return in May and now have a +9.33% year-to-date total return. Small cap REITs (+4.28%) led again in May, with both mid caps (+4.28%) and large caps (+0.72%) also in the black. Micro caps...
Market Commentary | June 16, 2026
Portfolio Shuffle For more than 3 years, we have forecast that shopping center REITs are poised for outperformance. Well, like the broken clock that’s always right twice a day, this year our prognostication came true and stuck. After six consecutive quarters of strong...
Using Pareto Upgrades to Grow Yield on Invested Capital
In less than 2 years, yield on invested capital in our Baseline + accounts has increased from 8.55% to 11.33%. A large portion of this increase came from Pareto upgrades. What is a Pareto upgrade? Pareto superiority is an economic concept in which one choice is...