Key Takeaways: Given that REITs are growing more topical vis-a-vis Quad 3/4, we decided to put in some macro work to get a little more granular on the different REIT subsectors from a GIP back-test perspective. The issue is that some of the legacy Bloomberg REIT indexes are dated and/or have or lack tickers that differ from the way REIT-dedicated buysiders slice and dice the world. The results are pretty self-explanatory and could be a helpful roadmap, but a few key points:
- Focusing in on median returns, Quad 3 favors Data Centers, Manufactured Housing, Self-Storage and Tower REITs in that order on the Long side. Regional Malls and Office historically are poor performers and screen well on the Short side
- Quad 4 favors Shopping Centers, Data Centers, Towers and NNN/Single-Tenant in that order on the Long side. Non-Gateway Office, Manufactured Housing and Self-Storage screen well on the Short side
Figure 1: GIP Back-Tests by REIT Subsector
Please call or e-mail with any questions.
Rob Simone, CFA
Managing Director
Twitter: @HedgeyeREITs
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