Steadfast Cos. is launching its third REIT, Steadfast Apartment REIT III. Its first acquisition for the new REIT is a 136-unit complex outside of Chicago, purchased for $7.6 million. Steadfast Income REIT and Steadfast Apartment REIT, Steadfast's first two REITs, have portfolios of $1.8 billion and $1.3 billion, respectively.
Around the globe investors in commercial real estate are seeking yield and security, says Allen Smith, CEO of Prudential Real Estate Investors. At the same time, supply-demand fundamentals favor sellers, especially for U.S. properties. All that translates into intense demand for the best properties in the best markets, he says.
Advisers and investors are increasingly drawn to the dividends and income flows offered by mortgage REITs. "Compared to Treasuries, mortgage REITs are paying much better yields -- and we don't see that trend reversing soon," says Matt Reiner, chief investment officer at Capital Investment Advisors.
JPMorgan Chase, Bank of America and other banks are being sued by local governments, community banks and customers regarding possible manipulation of the London Interbank Offered Rate. The defendants have asked U.S. District Judge Naomi Reice Buchwald to dismiss the cases, arguing there is no evidence they broke the law.
REITs are poised to generate double-digit returns in 2013, according to research by RREEF Real Estate. The positive momentum also is expected to fuel growth in private real estate, which typically lags REITs by a few years, the report said.