www.jpmorganmarkets.comNorthAmericaEquityResearch15November2019REITsHere’swhatwentdownatNAREIT'sREITworldREITsAnthonyPaolone,CFAAC(1-212)622-6682anthony.paolone@jpmorgan.comBloombergJPMAPAOLONEJ.P.MorganSecuritiesLLCMichaelW.Mueller,CFAAC(1-212)622-6689michael.w.mueller@jpmorgan.comBloombergJPMAMUELLERJ.P.MorganSecuritiesLLCNikitaBely(1-212)622-0695nikita.bely@jpmorgan.comJ.P.MorganSecuritiesLLCHongZhang(1-212)622-6416hongliang.zhang@jpmorgan.comJ.P.MorganSecuritiesLLCSarahTan(1-212)622-1041sarah.tan@jpmorgan.comJ.P.MorganSecuritiesLLCDhirajKKapgate(9122)6157-3354dhiraj.kapgate@jpmchase.comJ.P.MorganIndiaPrivateLimitedSeepage62foranalystcertificationandimportantdisclosures,includingnon-USanalystdisclosures.J.P.Morgandoesandseekstodobusinesswithcompaniescoveredinitsresearchreports.Asaresult,investorsshouldbeawarethatthefirmmayhaveaconflictofinterestthatcouldaffecttheobjectivityofthisreport.Investorsshouldconsiderthisreportasonlyasinglefactorinmakingtheirinvestmentdecision.WeattendedNAREIT’sREITworldconferenceinLosAngelesthisweekandmetwith51managementteamsandparticipatedinsixpropertytours/events.Themoodinmostmeetingsandinthehallwayswasupbeat.Underlyingfundamentaltrendsforthelargemajorityofcompaniesinthespaceareprettysolidgivenhowlongtheeconomicexpansionhasbeengoingandjobgrowththathasbeenconsistent,evenifnotcheddownalittlethisyear.Interestratesarelowandstockshavepostedtotalreturnsof~25%YTD.Thismakesforagoodoveralloperatingenvironmentforthespace,andmostcompaniesarenowinapositiontousetheirstockcurrenciestofundaccretiveinvestmentactivity.Inourview,wecontinuetoseetheset-upforREITsasbeinggoodbecauseofthevisibilityweseefor~4%earningsgrowthin2020withabove-averagedividendyieldsinalow-rateenvironment.Wethinkinvestorsshouldhaveexposuretothespace.Thispicturedoesremaindependent,however,onhowthebroadermarketplaysout.Forinstance,wehaveseenasignificantreversalinrelativeoutperformanceforthisgroup(andwithinthegroup)inthelast1-2monthsastariffs/tradebecamelessofaperceivedris...
