• Investing
  • Stock
  • Editor’s Pick
  • Economy
The Significant Deals
Stock

Here is the 2025 global real estate outlook according to RBC

by December 21, 2024
written by December 21, 2024

Investing.com — In its report titled “2025 Global Real Estate Outlook,” RBC Capital Markets said it anticipates diverging paths for Canadian (CDN) and U.S. REITs in 2025, underpinned by valuation dynamics, monetary policy shifts, and sector-specific fundamentals.

Canadian REITs underperformed their U.S. counterparts in 2024, with the S&P/TSX REIT index gaining just 1% year-to-date compared to the MSCI U.S. REIT index’s 13% rise. However, RBC sees a stronger 2025 setup for Canadian REITs, driven by attractive valuations and anticipated monetary policy easing from the Bank of Canada (BoC).

“With most subsectors still positioned to deliver decent earnings growth, valuations looking increasingly appealing, and more sizeable anticipated monetary policy easing by the BoC, we see support for stronger CDN REIT returns in 2025,” RBC analysts led by Pammi Bir said in the note.

U.S. REITs, facing stretched valuations and persistent headwinds from rising bond yields, are projected to deliver flat to slightly positive total returns next year, potentially lagging the broader U.S. equity market.

The sector-specific outlook underlines robust prospects for Canadian seniors housing, buoyed by accelerating demand and muted new supply.

RBC expects an average growth of 11% in same-property (SP) net operating income (NOI) for retirement homes in 2025, with net operating income growth for long-term care facilities expected to range between 1% and 2%.”

Meanwhile, Canadian industrial REITs are expected to benefit from substantial mark-to-market opportunities, though near-term pressures include rising availability rates and moderating demand.

In the U.S., healthcare REITs stand out with a “healthy operating environment and solid long-term outlook,” particularly among those with significant SHOP portfolios.

At the same time, net lease REITs are poised for acquisition volume growth as capital costs improve, but performance will remain tied to yield curve movements.

Other subsectors, such as U.S. industrial and storage, are likely to face continued pressure into mid-2025 due to demand uncertainties.

RBC’s global REIT basket balances sector fundamentals, growth prospects, and valuation.

Notable picks include Dream Industrial REIT (TSX:DIR_u) (DIR), Boardwalk REIT (TSX:BEI_u) (BEI), and Chartwell Retirement Residences (TSX:CSH_u) (CSH) in Canada, alongside U.S.-based Gaming & Leisure Properties (NASDAQ:GLPI) and Healthpeak Properties (NYSE:DOC).

American Healthcare REIT Inc (NYSE:AHR) (AHR) is highlighted as among the picks with “the best growth prospects not only in the sector but also the industry in our view,” analysts said.

The report also cautions about challenges in Canadian office markets, where leasing velocity remains sluggish, and U.S. manufactured housing, which grapples with stock selection difficulties despite favorable fundamentals.

This post appeared first on investing.com
0 comment
0
FacebookTwitterPinterestEmail

previous post
U.S. housing market to improve in 2025, but challenges persist
next post
14 lessons from 2025 to remember in 2025: BofA

You may also like

BASF results down on impairments, restructuring

January 27, 2025

European chipmakers slump as traders gauge DeepSeek AI...

January 27, 2025

Nasdaq futures tumble as China’s AI push rattles...

January 27, 2025

China Vanke’s CEO, chairman resign amid growing liquidity...

January 27, 2025

Fuji Media, rocked by sexual misconduct allegations, says...

January 27, 2025

Italy’s MPS shares fall ahead of Mediobanca board...

January 27, 2025

British Land stock drops following stake sale

January 27, 2025

UMG shares rally after new multi-year pact with...

January 27, 2025

BASF shares indicated 3% lower as impairments drag...

January 27, 2025

Ryanair cuts 2026 traffic forecast amid ongoing Boeing...

January 27, 2025
Fill Out & Get More Relevant News








    Stay ahead of the market and unlock exclusive trading insights & timely news. We value your privacy - your information is secure, and you can unsubscribe anytime. Gain an edge with hand-picked trading opportunities, stay informed with market-moving updates, and learn from expert tips & strategies.

    Recent Posts

    • Divided Fed proposes rule to ease capital requirements for big Wall Street banks

      June 26, 2025
    • Women’s Tennis Association extends media rights deal with Tennis Channel through 2032

      June 26, 2025
    • Bumble shares jump 26% as dating company plans to axe 30% of workforce

      June 26, 2025
    • Small-business AI use is lagging, but one firm is channeling Sherlock Holmes and knocking out ‘grunt work’

      June 25, 2025

    Categories

    • Economy (245)
    • Editor's Pick (3,646)
    • Investing (534)
    • Stock (6,426)

    Latest News

    • Divided Fed proposes rule to ease capital requirements for big Wall Street banks
    • Women’s Tennis Association extends media rights deal with Tennis Channel through 2032

    Popular News

    • Sri Lanka’s ambitious governance and macro-linked bonds
    • Fed’s Barr to resign early from regulatory job to avoid ‘dispute’ over role

    About The Significant deals

    • Privacy Policy
    • Terms & Conditions

    Copyright © 2025 thesignificantdeals.com | All Rights Reserved

    The Significant Deals
    • Investing
    • Stock
    • Editor’s Pick
    • Economy