Institutional investors, among others, look to alternative investments such as real estate to bolster returns. In particular, public real estate investment trusts (REITs) have gained favor since recent performance of the sector has surpassed bonds and common equity benchmarks by a large margin.  Also, their low correlation with other asset classes make REITs a valuable component of portfolio diversification strategies.

Boxwood’s REIT Analytics service supports investment decisions by portfolio managers at investment management firms, mutual funds and hedge funds. The research service is provided to clients on a monthly subscription basis.

Our quantitative models incorporate massive quantities of real estate market data and securities-related information on over 100 REIT firms. We initially estimate asset-level REIT returns based on property income, rental growth, occupancy rates, employment and other variables based on time-tested models of historical and projected real estate market and macroeconomic conditions that are observable and quantifiable. Such real estate metrics are then combined with roughly 40 key financial and stock-related factors that are correlated with REIT price movements. These approaches render a quantitative score or risk-adjusted investment rating on the long or short side for all REITs. Updated scores and rankings are provided to clients each month.

For more information about our REIT Analytics service, contact Michaell Taylor