Economics, Housing, & Commercial Real Estate Analysis

Keepin' It Real 

Apartment REITs
Homebuilders 1.png
Data Center REITs
Mall REITs
Net Lease REITs
Housing100logo.png
  • Alex Pettee, CFA

Prison REITs: Go Woke, Go Broke?

  • The United States has the largest prison population in the world. The swelling prison population, combined with limited state and federal resources, facilitated the rise of privately-owned prison facilities.

  • Undoubtedly the most controversial real estate sector, Prison REITs have been under assault from the hard-line “woke” culture that sees private prisons as conspirators in a powerful “prison industrial complex”.

  • Prison REITs haven’t been very effective conspirators. Prison ownership remains a challenging, low-margin business with poor historical investment returns. Prison REITs trade at deep discounts with dividend yields above 10%.

  • While the hard evidence debunks many of the claims made by the loudest critics, Prison REITs face a potential existential crisis if the political winds shift unfavorably in the 2020s.

  • Despite the “cancel culture,” we see opportunity for speculative investors willing to assume the political risk. Modernization of outdated public facilities would be a win-win for investors and inmates alike.

Click here to continue reading on Seeking Alpha!

Hotel REITs
Single Family Rental REITs
Mobile Home REITs
Healthcare REITs
prison REITs overview.png
  • Facebook Social Icon
  • Twitter Social Icon
  • LinkedIn Social Icon

Hoya Capital Real Estate, LLC

Invest@HoyaCapital.com

(833) HOYA-CAP

Hoya Capital Real Estate ("Hoya Capital") is an SEC-registered investment advisory firm that provides investment management services to ETFs, individuals, and institutions, focusing on portfolio and index management of publicly traded securities in the real estate industry. Nothing on this site is intended to be investment advice or an offer to buy or sell securities. The risks of investing in real estate securities are similar to those associated with direct investments in real estate, including falling property values, lack of liquidity, limited diversification, and sensitivity to certain economic factors such as interest rate changes and market recessions. No representation or warranty is made as to the efficacy of any particular strategy or fund, or the actual returns that may be achieved. An investor cannot invest directly in an index and index performance does not reflect the deduction of any fees, expenses or taxes. Data quoted represents past performance, which is no guarantee of future results. The views and opinions in the preceding commentary are as of the date of publication and are subject to change without notice. The information presented does not reflect the performance of any fund or other account managed or serviced by Hoya Capital, and there is no guarantee that investors will experience the type of performance reflected. There is no guarantee that any historical trend illustrated herein will be repeated in the future, and there is no way to predict precisely when such a trend will begin. There is no guarantee that any trend cited in this market commentary will be realized. This material represents an assessment of the market environment at a specific point in time, should not be relied upon as investment advice, is not intended to predict or depict performance of any investment and does not constitute a recommendation or an offer for a particular security. We consider the information in this presentation to be accurate, but we do not represent that it is complete. It should not be relied upon as investment advice or as the sole source of suitability for investment. Please consult with your investment, tax or legal adviser regarding your individual circumstances before investing.

Additional Disclosure & Privacy Policy     Index Definitions & List of Holdings

Seeking-Alpha-Logo.png

The Easy Way To Invest In Real Estate