The information contained herein should be considered to be current only as of the date indicated, and we do not undertake any obligation to update the information contained herein in light of later circumstances or events. This publication may contain forward looking statements and projections that are based on the current beliefs and assumptions of Chilton Capital Management and on information currently available that we believe to be reasonable, however, such statements necessarily involve risks, uncertainties and assumptions, and prospective investors may not put undue reliance on any of these statements. This communication is provided for informational purposes only and does not constitute an offer or a solicitation to buy, hold, or sell an interest in any Chilton Capital Management investment or any other security.
Year to date, the largest contributors to relative performance were an overweight allocation to data center/tech sector, an underweight to the self storage sector, and stock selection in the industrial sector. Detractors from relative performance included an overweight to malls, an underweight to triple net, and stock selection in shopping centers.
Positive contributors to relative performance included stock selection within the lodging and specialty sectors, and an underweight to the healthcare sector. Stock selection in the industrial, residential, and shopping center sectors detracted from relative performance.
In the December 2019 REIT Outlook titled, “Clearing Up REIT Misperceptions of Generalist Investors,” we address the most prevalent misconceptions that may be preventing non-dedicated (or ‘generalist’) investors from entering the space. While we are appreciative of the growth of the generalist investor from comprising only 11% of REIT equity in 2Q12 to almost 27% as of 2Q19, the average generalist mutual fund is still 58% underweight to the GICS real estate sector as of 4Q18. We believe the broad underweight of this long term attractive sector creates an opportunity for further outperformance relative to other sectors. In addition, some of the misperception also creates an environment that is rife with arbitrage opportunities for knowledgeable active managers to exploit.
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