Hedge Fund
Serenity Alternative Investments Blog - Q2 REIT Earnings Update: Retail, Warehouse, And Lodging
August 2020
PERFORMANCE – Serenity Alternatives Fund I returned +3.5% in July bringing YTD returns to 4.3%. The FTSE NAREIT All Equity REITs index returned +3.82% bringing YTD returns to -9.9%.
- EARNINGS – REITs began reporting Q2 2020 earnings in July, adding much-needed insight into the magnitude of Covid-19’s impact.
- POSITIONING – Gross and net positioning in the portfolio have increased as stable fundamentals have been confirmed in Warehouse and Data Center portfolios.
“Life breaks free. Life expands to new territories. Painfully, perhaps even dangerously. But life finds a way.”
– Michael Crichton, Jurassic Park
The US economy in April and May felt a bit like that scene in Jurassic Park when the T-rex is smashing a Land Rover to smithereens and everyone is just trying to stay alive. The stock market was imploding, most major cities had issued shelter in place orders, and there was a general feeling that things were out of control.
Fast forward a few months, and while the outlook is far from sunny, we can at least survey the damage and begin to move forward. As earnings season has progressed, many companies (including many REITs) have reported results that are much more positive than the doomsday scenarios many investors feared.
Life…and the US consumer…has seemingly found a way.
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