Expectation that the U.S. economy will keep slowing drove the yield on the 10-year Treasury note to less than 2% for the first time since the 1950s. Some buyers were willing to take 1.96%, the lowest on record.
UDR has invested $1.16 billion in Manhattan's multifamily market this year. "Our strategy is very simple," said Tom Toomey, UDR's president and CEO. "We want to own the best apartments we can in particular marketplaces where there's long-term growth demographics."
Washington, D.C.-area REITs are divesting their industrial assets to focus on core, stable properties. Washington Real Estate Investment Trust and First Potomac Realty Trust have both embraced this shift.
CNL Lifestyle Properties is expanding the asset class in which it invests, CEO Byron Carlock told REIT.com recently. Besides its golf courses, ski resorts, country clubs and marinas, it is also investing in senior living properties, which now make up about 14% of CNL's portfolio by asset value. "There's a very valid position in our economy for these types of properties," Carlock said.
Credit investors are focusing more on borrowers more likely to survive a difficult economic period, causing returns on investment-grade corporate bonds to outperform those of high-yield bonds. High-grade bonds have risen 1.36% this month, while speculative-grade debt has inched up 0.08%, according to index data from Bank of America Merrill Lynch.