Dane Bowler writes that apartment REITs have systematically outperformed over time, and by a huge margin based on (1) clean industry structure, (2) location and time specificity, and (3) shadow supply reduction. Since 1992, they have achieved a return of 2743% compared to the 1438% return of the general REIT Index. Interesting consideration of the impact of Airbnb related legislation in the space.
Beth Mattson-Teig reports on rising investor appetite for real assets and a move away from publicly-traded stocks to private securities as yields have declined. The non-listed REIT sector is also benefitting from growing demand for income investments for retirement accounts from both institutions and individual investors.
Good news for REIT investors, the IRS clarified rules that allow a 20% deduction off the income received via REIT investments from overall taxable income of eligible investors.