Industrial REITs: It's Prime-Time

  • For full report, click here to read SeekingAlpha!
  • Amazon’s push towards two-day and same-day delivery has sparked a supply chain “arms race” among retailers and logistics providers of all sizes. Speed is all about supply chain densification.
  • Riding the e-commerce wave, industrial REIT performance has been relentless over the past half-decade. Consumers increasingly demand speedy delivery, and retailers need industrial REITs to deliver it.
  • What Trade War? Despite continued uncertainty over trade and its impact on the supply chain, the secular tailwinds driven by domestic e-commerce has overwhelmed trade-related headwinds so far this year.
  • Last quarter's earnings results indicated that the best may be yet to come. Leasing spreads jumped nearly 11% while the acquisition pipeline has re-opened given REITs' favorable cost of capital.
  • "Death By Amazon" has been the mantra across retail, but Amazon's push into logistics - and the potential negative impact on industrial REIT pricing power - shouldn't be ignored.

If you enjoyed this report, be sure to "Follow" our page to stay up-to-date on the latest developments in the housing and commercial real estate sectors. For an in-depth analysis of all real estate sectors, be sure to check out all of our quarterly reports: Homebuilders, Apartments, Student Housing, Single-Family Rentals, Manufactured Housing, Cell Towers, Healthcare, Industrial, Data Center, Malls, Net Lease, Apartments, Shopping Centers, Hotels, Office, Storage, Timber, and Real Estate Crowdfunding.

Disclosure: An investor cannot invest directly in an index and index performance does not reflect the deduction of any fees, expenses or taxes. The information presented does not reflect the performance of any fund or other account managed or serviced by Hoya Capital Real Estate. We consider the information in this presentation to be accurate, but we do not represent that it is complete. It should not be relied upon as the sole source of suitability for investment. Please consult with your investment, tax or legal adviser regarding your individual circumstances before investing. Visit our website for a complete definition of all indexes cited in this report. Investing involves risk and loss of principal is possible.

Previous
Previous

Real Estate Daily Recap: Third Straight Down-Day for REITs

Next
Next

Real Estate Daily Recap: Mixed Day for Real Estate Following Strong Retail Sales Data