Latest news with #REITs
Time of India
12 hours ago
- Business
- Time of India
REITs account for 43% of real estate fundraising since FY18: Report
NEW DELHI: Smallcap real estate companies have emerged as the top-performing segment in the realty space over the past 12 months, delivering a 17% return, according to a recent report by Equirus Securities . The performance outpaced other market segments, with REITs yielding 15.2%, midcap realty stocks posting 2.5%, while the benchmark Sensex managed just 1.4%. Largecap real estate firms underperformed, registering a negative return of -2.9% during the same period. Equirus noted that the trend remains consistent even over a longer horizon, with smallcap real estate players leading gains since March 2021, followed by midcap and largecap players. REITs, despite their popularity, delivered the lowest returns in that timeframe. REITs dominate real estate fundraising since FY18 Real Estate Investment Trusts (REITs) have accounted for 43% of total capital raised via primary market sources since FY18, highlighting their growing role in institutionalising the Indian real estate sector. Out of the total ₹72,331 crore raised in the sector during this period, ₹31,241 crore was mobilized through REITs. The past 12 months alone saw over ₹26,000 crore raised by real estate companies via capital markets. This trend underlines investor appetite for income-generating commercial assets amid rising demand for high-quality office and retail spaces. REITs continue to attract capital due to their relatively steady yields and transparency. Warehousing stock surges 2X amid policy push and e-commerce boom India's warehousing sector has witnessed a significant transformation, with total stock more than doubling from ~213 million sq. ft. in 2019 to 438 million sq. ft. in 2024 across the top 8 Tier 1 cities. The total warehousing footprint, including Tier 2 and 3 cities, now stands at approximately 533 million sq. ft., according to the report. Government policy interventions such as GST, Gati Shakti, Dedicated Freight Corridors (DFCs), and the Urban Infrastructure Development Fund (UIDF) have accelerated infrastructure development, enhancing connectivity and enabling the warehousing sector to move beyond metros. Tier 2 and 3 cities now contribute approximately 95 million sq. ft., accounting for 18% of total stock, marking a fourfold increase since 2017. Notably, Grade A warehouses constituted about 80% of new absorption in top Tier 1 cities in 2024, while their share in emerging cities stands at around 30%, indicating a clear occupier preference for quality infrastructure. The rise in e-commerce activity, with nearly 60% of demand now originating from non-metro cities, continues to drive the sector's structural expansion.
Skift
a day ago
- Business
- Skift
Toronto Has Canada's Largest Hotel Pipeline
The DJIA was down 172 points while the Nasdaq was up 31, the S&P 500 fell 8 points, and the 10-year treasury yield was up .05 to 4.34%. It was a weird day on Wall Street as we have no idea why the Fed kept interest rates unchanged sparked such a negative reaction since that is what was expected. Lodging stocks were lower, with REITs hit the hardest. SVC was down -8% while PEB was the other big mover, down -5% on the day. Pebblebrook Hotel Trust reported a modest earnings beat, with business interruption insurance proceeds from La Playa and the transformed Newport Harbor boosting results. PEB management said demand has remained resilient and that is probably going to help sentiment on the whole group, at least until some company reports results and sounds less enthusiastic. PEB bought back 112,000 shares for $1 million during the quarter. Raymond James&nbs
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Business Standard
2 days ago
- Business
- Business Standard
REITs rule capital raising; small caps lead realty gains with 17% return
In a rebound for India's real estate sector, small-cap real estate companies have emerged as the top performers, delivering 17% return over the past 12 months, according to financial services firm Equirus Securities. This growth notably outpaces the broader Sensex, which managed just 1.4%, and leaves large-cap real estate firms trailing in negative territory at –2.9%. REITs (Real Estate Investment Trusts) followed closely with 15.2% returns, while mid-cap players delivered 2.5% during the same period. "Small Cap real estate companies have been the best performing segment in the past 12 months, garnering 17% returns, followed by REITs at 15.2%, midcap at 2.5%, the benchmark index Sensex posted a meagre 1.4%, whereas the largecap real estate listed companies posted a negative -2.9% returns," said the note. Small Cap real estate companies have been the best performing segment in the past 12 months On a longer-term scale, small cap realty stocks have continued to outperform mid-cap and large-cap peers since March 2021, underscoring investor interest in agile, high-growth players in the sector. In contrast, REITs have offered the lowest cumulative returns, highlighting the segment's relatively stable but slower growth trajectory. small cap listed real estate companies continue to be the best performing segment since March 2021 followed by Mid Cap, large cap, benchmark Sensex and lastly the REITs, that posted lowest returns. Since FY18 a total of Rs 723,310 mn was raised in the real estate sector, out of that REITs accounted for over 43% around Rs 312,413 mn, followed by Rs 204,370 mn. Equirus' data reveals that since FY18, a total of ₹72,331 crore has been raised by real estate entities via primary capital markets. Of this, REITs alone contributed ₹31,241 crore, or 43% of the total capital raised, followed by Qualified Institutional Placements (QIPs) and IPOs. In the last 12 months alone, real estate firms have raised ₹26,000 crore, a signal of increasing investor confidence amid regulatory reforms and infrastructure push. Warehousing Boom: Stock Doubles Across Tier 1 Cities India's warehousing sector, once confined to metro hubs, is now expanding aggressively into Tier 2 and Tier 3 cities. Since 2019, total warehousing stock in the top eight Tier 1 cities has more than doubled, rising from 213 million sq. ft. to 438 million sq. ft. in 2024. Pan-India warehousing stock reached 533 million sq. ft. this year. The transformation is driven by e-commerce growth (with nearly 60% of demand from non-metro regions), improved connectivity through the Gati Shakti master plan, Dedicated Freight Corridors, and policy enablers like GST and the UIDF scheme.
Globe and Mail
3 days ago
- Business
- Globe and Mail
2 Top Dividend Stocks Yielding 5% or More to Buy Right Now for Passive Income
Key Points Realty Income is a high dividend payer with a long track record. Vici Properties is perhaps the safest way to bet on Las Vegas. 10 stocks we like better than Realty Income › Over time, dividends have become a smaller and smaller part of the stock market's total return, with the S&P 500 boasting an average yield of just 1.22% today, compared to 7.44% in 1950. That said, some companies still offer fat, consistently growing payouts, just like the good old days. Let's explore some reasons why Realty Income (NYSE: O) and Vici Properties (NYSE: VICI) could make fantastic long-term picks. Realty Income Corporation Real estate investment trusts (REITs) are a special type of investment that allows retail investors to benefit from the income generated from commercial real estate. But they aren't all the same. Realty Income stands out from the alternatives because of its track record of success, monthly payouts, and unique, risk-minimizing business model. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » Since going public in 1994, Realty Income has increased its dividend for 30 consecutive years. The company funds the payout with the cash generated from its portfolio of 15,600 properties spread across North America and Europe. Realty Income's business model is relatively safe because of its use of triple-net leases, which mean the tenant is responsible for building-level operating costs like tax and insurance. It also tends to focus on recession-proof tenants like grocery stores, dollar stores, and auto repair shops, although many flashier clients like casinos and IT data centers have been sprinkled into the mix to help power growth. While macroeconomic threats like high interest rates have caused Realty Income's shares to underperform in recent years, they give investors an opportunity to buy the stock for cheap and lock in a relatively high yield of 5.55% at the time of writing, which is far above the market average. Vici Properties While Realty Income features a long track record and diversification into many different industries, Vici Properties offers more concentrated exposure. The company was formed in 2017 from the spinoff of real estate assets formerly owned by Caesars Entertainment Company during its bankruptcy restructuring. It has since evolved to become a leading entertainment-focused REIT, with 93 properties across North America. While entertainment is a consumer discretionary expenditure that may drop during economic downturns, Vici manages this risk with triple-net leases and high-quality tenants like Caesars and MGM Resorts, which have stable businesses and are deeply tied to their locations. The company has often relied on leaseback sales, which are when it buys an asset (such as a Casino) from a client who needs liquidity or to free up capital for elsewhere, only to rent it back to them, giving Vici access to stable, growing revenue. Vici also offers excellent growth potential as it expands into different asset types, such as golf courses, and potentially redevelops its 33 acres of undeveloped land located near the Las Vegas Strip. With a dividend yield of 5.15%, Vici is an excellent pick for investors who prioritize passive income. But don't overlook its stock price growth potential. Shares have risen around 60% over the last five years, with a 16% rally so far in 2025. The company probably won't stay this cheap for long. Which dividend stock is right for you? Realty Income and Vici Properties are both great picks for investors who prioritize sustainable passive income for the long term. If you could only pick one, the best choice will depend on your investment goals. Realty Income is better for investors who are willing to sacrifice a little growth potential for stability. But while Vici Properties doesn't have as long a track record, it offers more room for capital appreciation. Should you invest $1,000 in Realty Income right now? Before you buy stock in Realty Income, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Realty Income wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $636,628!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,063,471!* Now, it's worth noting Stock Advisor's total average return is 1,041% — a market-crushing outperformance compared to 183% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 28, 2025
Yahoo
3 days ago
- Business
- Yahoo
Investors in the housing market: What you need to know
There have been a lot of headlines about the number of investors, both large and small, snapping up homes as investments. Kinloch Partners co-founder & CEO Bruce McNeilage explains who these investors are and why so many are getting into housing. To watch more expert insights and analysis on the latest market action, check out more Asking for a Trend here. When we talk about these investors moving in, what kind of investors are we talking about, Bruce? Are we talking about relatively are these smaller investors, or these private equity players? Who are they? Sure, they're all the above, right? They're small mom and pop investors. They're buying four and five houses here and there. They're mid-tier companies like us. We'd like to do another 100 to 200 houses by the end of the year. They're larger players, and then there are the ones in between. Now, family offices, sovereign wealth funds, the hedge funds, the REITs, everybody is coming into the market right now. There's been too much money on the sidelines, and we're really starting to see these builders benefit because they have a lot of excess inventory, and folks like us can come in, clean up their inventory here in the next few months, and really uh help them with their profits and buy up their inventory. So that's interesting, Bruce. So part of the trend here is its home builders have a lot of inventory. That's part of the the driver here. Yeah, absolutely. Mom and pops are having a tough time qualifying for mortgages, right? The interest rates are just too high in the last 52 weeks. You know, you look at Freddie Mac numbers, they've basically stayed the same. We're hovering just under 7%. People cannot afford mortgages right now. So the next best thing is to rent a brand new house. Well, who do you rent a brand new house from? The people that have bought one, or the people that have built one. And so we're really offering something that most people can't get, a brand new house, instead of buying it, you're renting it. And the smaller investor, Bruce, in particular, that this was really the trend the kind of journal pointed out here, is there a reason right now, Bruce, that smaller investors would be more active? Yeah, sure. So small investors can borrow money from credit unions. They can borrow against their 401k. They can do a lot of different things that larger investors aren't going to do. And when you see the the price of houses coming down, when you see the inventory come uh going up, and when you also see all these builder incentives, it really helps a small investor get in the game, so to speak, because they are getting these discounts from these builders. And is the business model there, Bruce, for the smaller investor? It's what, you move in, buy a home, make some modest renovations, rent it with the aim of of one day selling it. Is that the idea? Yeah, most people are looking at either buying a new house or what I call a used house and fixing it up. You cash flow it for a number of years, let's say three to five years. It goes up in value, and then you sell it. A lot of people are just in this for the capital gains. Some people are in it for the income and capital gains, but the name of the game is to have positive cash flow from day one and then sell it at a profit at the end. Is there are there advantages, Bruce, a smaller investor, relatively would have over a private equity player? Yeah, I think they can be nimble. I don't think they have the same rules. They certainly don't have investment committees. And so they can choose to buy a house, rent a house, sell a house, and they can pay what they want to pay. You know, again, they don't have a mandate from an investment committee. So if they want to buy something with a lower cap rate, if they want to buy something with a higher cap rate or something big, small, uh you know, older, uh newer, they can be as nimble as they want where the larger funds can't. They have mandates. You know, they have a buy box and uh and and they've got some restrictions, and we do too. I'm sure, Bruce, there are some folks who are watching this right now who think, well, hold on a second. Doesn't this trend, doesn't this thing that Bruce and Josh are talking about ultimately make it that much tougher for regular Americans, Bruce, to come in and bid and compete? Yeah, so you would think that, but what we're doing is we're not taking inventory out of the market. For us, we're building brand new houses, not taking inventory out of the market. And then these houses are available in the MLS. You know, you buy houses from the different large builders. Anybody can buy those houses today. It's just people are not. So investors are coming in, cleaning up this inventory, buying the houses, but quite frankly, they're available to everyone. It's just people can't afford them. So it's buying up the houses and making more stock available again, not to buy, but for people that can't buy but to rent.
