Your daily digest of real estate news from Tuesday, November 9, 2021: change the next FPI data center
New FPI alert: this data center operator is making the switch
Data center operator Switch (NYSE: SWCH) is now considering converting to a REIT (REIT). Switch operates a high-end data center business that has been growing at a steady pace for years. However, the market has not given it enough credit for this value creation or its potential for future growth. This leads him to switch to a REIT, which also gives investors an exciting new option to consider. Motley Fool contributor Matthew DiLallo puts this movement into context among the small constellation of existing data center REITs.
Why I decided to turn my house into a rental property
Motley Fool collaborator Laura Agadoni explains here how she became an “accidental landlord” when her California home didn’t sell during the 2008 housing crisis. This reaction to the 50% drop in prices in her local market launched her on a journey that now finds her successful as an investor and real estate agent in Atlanta. Check out this article for an overview of his experience, both good and bad.
2 Surefire REITs to be held for the long term
Because they are required to pay at least 90% of their taxable income as dividends, REITs tend to be good candidates for buy and hold investments, especially for the more conservative part of the portfolio that aims for growth and income. But that doesn’t mean you have to sacrifice the prospects for long-term capital appreciation. Here we share the perspective of Motley Fool contributor Marc Rapport on two REITs that are dominating their space in niches that may well be on the rise for years to come.
In the news of the day
RevPAR will return to PAR in 2023 as hospitality industry recovers from pandemic
RevPAR may not be the most widely recognized shortcut in real estate investing, but it means a lot in the hospitality business. It represents revenue per available room, and this week analysts at STR and Tourism Economics said they expected this critical metric to return to pre-pandemic levels across the industry. by 2023. That’s a full year ahead of what they had forecast this summer, the first upward revision in 16 years, according to a report posted online this week by Business Travel News.
Aggregate demand and average daily rates are expected to get there next year. This is very good news for hotel investors, including through major operators or through hotel REITs specializing in these properties.
Artificial intelligence doesn’t look so smart after Zillow iBuying collapse
The shortcomings of using artificial intelligence (AI) to value real estate were highlighted during the Zillow Offers business collapse last week. Zillow uses the technology to generate the Zestimates that the company itself used to value the homes it would buy on its own. CNN explains what happened there in an article published today. The Wall Street Journal, meanwhile, had his own piece on that puzzle today, looking at what it all could mean for rival iBuyers Open door and Offer block.
This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are motley! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.