(Read More: The Other Housing Recovery: Agents’ Pay)

“Physical real estate is attracting institutional investors because there is a positive spread between how much it costs to finance real estate versus the income generated,” added Goldfarb.

On a total return basis, the FTSE NAREIT All REITs Index gained 5.80 percent in April and the FTSE NAREIT All Equity REITs Index gained 6.33 percent, while the SP 500 was up 1.93 percent.

While almost all sectors of U.S. REITs have delivered double-digit gains year-to-date, some are outshining others. Health care was the industry’s top-performing major sector, with a 23.77 percent total return, according to the NAREIT report. Lodging was up 17.51 percent, and retail was up 17.34 percent, led by shopping centers.

An improving economy is clearly sending consumers back on vacation and back to the malls. Health care has been a consistent leader, as Baby Boomers fuel the aging population.

(Read More: Map: Tracking the US Real Estate Recovery)

A product of the real estate recovery, Mortgage REITs were up nearly 19 percent and Home Financing REITs were up over 17 percent. Commercial financing is driving much of the former, but these sectors are benefitting from a potential thaw in mortgage credit in residential as well.

“There are signs that conditions are beginning to loosen,” according to analysts at Capital Economics, who also noted that mortgage demand is on the rise.

Article source: http://www.cnbc.com/id/100734766

(Read More: The Other Housing Recovery: Agents’ Pay)

“Physical real estate is attracting institutional investors because there is a positive spread between how much it costs to finance real estate versus the income generated,” added Goldfarb.

On a total return basis, the FTSE NAREIT All REITs Index gained 5.80 percent in April and the FTSE NAREIT All Equity REITs Index gained 6.33 percent, while the SP 500 was up 1.93 percent.

While almost all sectors of U.S. REITs have delivered double-digit gains year-to-date, some are outshining others. Health care was the industry’s top-performing major sector, with a 23.77 percent total return, according to the NAREIT report. Lodging was up 17.51 percent, and retail was up 17.34 percent, led by shopping centers.

An improving economy is clearly sending consumers back on vacation and back to the malls. Health care has been a consistent leader, as Baby Boomers fuel the aging population.

(Read More: Map: Tracking the US Real Estate Recovery)

A product of the real estate recovery, Mortgage REITs were up nearly 19 percent and Home Financing REITs were up over 17 percent. Commercial financing is driving much of the former, but these sectors are benefitting from a potential thaw in mortgage credit in residential as well.

“There are signs that conditions are beginning to loosen,” according to analysts at Capital Economics, who also noted that mortgage demand is on the rise.

Article source: http://www.cnbc.com/id/100734766

Hundreds of investors in real estate investment trusts are hunkered down at the Waldorf Astoria, touting tremendous returns and talking tactics for the next great play. It’s “REIT Week,” in New York, or for those of you less excited about it, it’s the annual conference of the National Association of Real Estate Investment Trusts (NAREIT).

REITs overall are on a tear, with the FTSE NAREIT All Equity REITs Index up 14.13 percent on a total return basis in the first five months of the year.

But when I read down the fact sheet to the winners and losers, imagine my surprise to see the least sexy of the bunch at the top of the list: Self storage.

Forget the run on multi-family in the new rental age, forget the trophy office properties in the big metro markets, it’s those giant, brightly colored, enormous metal container communities just out beyond the mall that are reaping REITs rewards.

It’s simple, and it’s about housing. As fewer people choose to buy, and more people lose their homes, that’s where all their stuff goes. It’s also a product of overall downsizing. I realize that’s not a very highbrow explanation, but it just so happens to be the case, and it’s behind an 18.4% sector gain in the first five months of the year. In the last 12 months, self storage REITs returned 29 percent.

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Article source: http://www.cnbc.com/id/43329496?__source=RSS*blog*&par=RSS