NEWS AND UPDATES
The State of REITs: June 2026 Edition
REITs built upon a very strong April performance with another +2.53% average return in May and now have a +9.33% year-to-date total return. Small cap REITs (+4.28%) led again in May, with both mid caps (+4.28%) and large caps (+0.72%) also in the black. Micro caps...
Market Commentary | June 16, 2026
Portfolio Shuffle For more than 3 years, we have forecast that shopping center REITs are poised for outperformance. Well, like the broken clock that’s always right twice a day, this year our prognostication came true and stuck. After six consecutive quarters of strong...
Using Pareto Upgrades to Grow Yield on Invested Capital
In less than 2 years, yield on invested capital in our Baseline + accounts has increased from 8.55% to 11.33%. A large portion of this increase came from Pareto upgrades. What is a Pareto upgrade? Pareto superiority is an economic concept in which one choice is...
Market Commentary | May 20, 2026
Higher for Longer
The direction of interest rates has, for an extended time, played a significant role in discussions of economics and investment. Here is where we stood this morning.
The State of REITs: May 2026 Edition
The REIT sector roared back into positive territory after a very brutal March. REITs averaged a remarkable 8.9% April gain and now have a +6.31% year-to-date total return. Small cap REITs (+11.35%) soared in April as large caps (+9.05%) and mid caps (+8.13%) also saw...
Suitable Investors
If you were to ask, “Who is the ideal client for 2nd Market Capital Advisory?”, our immediate answer would be, “Anyone”. After all, we have long held that REITs TOUCH EVERY ECONOMIC SECTOR, and we know REITs well. Attempting to be less glib, we will, from time to...
The State of REITs: April 2026 Edition
Despite strong January and February gains, the REIT sector plunged into negative year-to-date territory (-2.22%) by quarter end as REITs aggressively sold off during a rough March (-7.52%). Small cap REITs (-5.65%) saw the least severe average negative returns in...
Market Commentary | April 21, 2026
In Through the Out Door
In the last two months’ market commentaries, we expressed optimism despite formidable headwinds and a general lack of macroeconomic clarity. This month, our perspective continues brighter with a marked pickup in M&A activity and growing market enthusiasm for REIT IPOs.
REIT Total Return: Heading into 2Q26
2026 began with a return to value investing. Many of the highfliers sold off materially while money poured back into value sectors like REITs. At the end of February, REITs were up substantially with the broader markets, and particularly momentum tech cooling off. ...
Market Commentary | March 20, 2026
Mitigating Volatility REITs won in February. As blind enthusiasm for everything AI evolved into a sober consideration of Return on Invested Capital (ROIC), investors began recycling funds from nose-bleed tech valuations into bread-and-butter staple valuations,...