Displaying items by tag: real assets

Despite the ongoing challenges in the residential REIT sector, some companies are well-positioned to benefit from strong demand and strategic advantages. Equity LifeStyle Properties, for example, focuses on manufactured home communities and RV resorts in high-demand locations, benefiting from favorable demographics and constrained supply. 

Veris Residential, with a modern Class A portfolio and a tech-driven approach, is poised to capitalize on scalable growth in the Northeast market. UMH Properties, which operates manufactured home communities across several states, is likely to see continued demand, particularly due to high mortgage rates that make renting a more viable option for many. 

These REITs are leveraging technology to enhance operations and optimize revenue, allowing them to adapt to evolving market dynamics. 

Finsum: Including an influx of new rental units and increased concessions, these companies offer strong prospects for future growth.

Over the past five years, inflation in the U.S. has reached its highest levels in decades, peaking at 9.1% in mid-2022 before cooling to around 2.7% as of late 2024. While inflationary periods are inevitable, investors can take strategic steps to protect their wealth. 

Warren Buffett, with a net worth exceeding $142 billion, advocates two timeless approaches to counter inflation’s effects. First, investing in yourself—enhancing your skills and abilities—ensures enduring value, unaffected by economic fluctuations. 

Second, Buffett highlights real estate’s intrinsic worth, noting its stability and potential for appreciation even during inflationary spikes. Real estates inherently built into the CPI making up 40% providing a strong safeguard against inflation. 

Finsum: By focusing on assets with lasting value, investors can safeguard their financial health in uncertain times.

Real estate investment trusts (REITs) offer an appealing option for investors seeking steady passive income, though dividends are never guaranteed. They are required to distribute at least 90% of rental profits as dividends, often yielding attractive returns. 

Additionally, REITs diversify risk by owning numerous properties across various sectors, including industrial, commercial, and residential, which investors might otherwise find inaccessible. 

Segro, a REIT specializing in warehouses across Europe, benefits from high demand and low supply, driving strong rental growth and a projected 4.2% yield for 2025. Grainger, the UK’s largest listed residential landlord, leverages the rental housing shortage to deliver robust earnings growth, offering a reliable 3.6% dividend yield with expectations of further increases in the coming years.

Finsum: With tenants locked into long-term contracts, rental income from REITs tends to be stable and predictable.

Several Western and Midwestern cities, including Boise, Idaho, and Stockton, California, are projected to join the "million-dollar club" in median home prices over the next decade. 

Realtor.com's forecast estimates Boise’s median price will rise from about $464,000 to $1.2 million by 2033, following a strong growth trend seen in previous years. Other cities expected to cross the million-dollar mark include Salt Lake City, Portland, and Colorado Springs. Stockton’s proximity to costly Bay Area markets is driving its prices, with an anticipated median of $1.4 million by 2033. 

Denver and Sacramento are also projected for substantial gains, reaching approximately $1.3 million and $1.1 million, respectively. These forecasts hinge on continued demand and limited supply, but a surge in new construction could temper these projected gains.

Finsum: One key aspect of this to watch is how fast wages are growing in these cities as this is a strong indicator of future home price growth

Pension and Benefits Monitor and Fiera Capital hosted a webinar titled “The Rise of Private Real Estate Credit in Canada’s Evolving Investment Landscape.” Industry leaders, including Michael Le Coche from Fiera Real Estate, discussed the advantages of private real estate credit as an alternative to traditional fixed-income options. 

The asset class offers higher yields, enhanced diversification, and stability amid market volatility, making it increasingly appealing. The event highlighted how Basel IV regulations are reshaping lending, with private credit filling gaps left by banks. 

Experts also discussed the unique regional dynamics within Canada’s real estate markets, which impact private credit strategies. Additionally, the importance of sustainable practices in real estate credit was emphasized, aligning environmental goals with financial performance.

Finsum: With rates falling again the real estate market could really look to open up given the tight supply constraints.