{"id":12062,"date":"2017-01-17T08:53:51","date_gmt":"2017-01-17T13:53:51","guid":{"rendered":"https:\/\/qa.bluevaultpartners.com\/?post_type=news&p=12062"},"modified":"2017-01-17T08:53:51","modified_gmt":"2017-01-17T13:53:51","slug":"reits-stumble-after-sp-debut","status":"publish","type":"post","link":"https:\/\/qa.bluevaultpartners.com\/reits-stumble-after-sp-debut\/","title":{"rendered":"REITs Stumble After S&P Debut"},"content":{"rendered":"
January 13, 2017 | By\u00a0Beth Mattson-Teig<\/a>\u00a0| National Real Estate Investor<\/p>\n REITs landed in a spotlight of their own last fall<\/strong> when they officially stepped out of the shadow of financials to headline their own real estate sector on the S&P 500. It was\u2014and is\u2014a big, long-awaited move. Industry observers anticipate that this could be a \u201cmajor step\u201d in attracting billions of dollars in new capital to REITs and other publicly-traded real estate companies.<\/p>\n Yet a less than stellar performance for the S&P 500 Real Estate sector during its first few months has taken some of the wind out of the sails. Real estate has been underperforming on the S&P 500 since it was added as a separate category, effective after market close on Aug. 31. During the fourth quarter, the S&P 500 Real Estate<\/a> sector reported total returns of -4.41 percent compared to 3.25 percent on the overall S&P 500 Index.<\/p>\n Industry experts have varying opinions on the cause for that underperformance in a market where real estate fundamentals across most property types have continued to improve. One likely culprit is hyper-sensitivity to rising interest rates<\/a>. The 10-year Treasury increased almost 100 basis points in the fourth quarter, from roughly 1.55 to 2.45 percent.<\/p>\n<\/p>\n