Research in Action: Staying focused on strong foundations as REITs look to rebuild

30 Mar 2023
1 minute listen

Last year’s rapid pace of rate increases led to a sharp sell-off in REITs as the cost of borrowing spiked and valuations had to reset.
In our view, REIT valuations now better reflect the rate environment. Areas of the sector also have solid fundamentals, including the potential to deliver earnings growth amid a slowing economy.
But selectivity is key: While supply/demand continues to strengthen in industrial REITs, office and residential properties could be challenged, in our view.

30 Mar 2023
1 minute listen

Last year’s rapid pace of rate increases led to a sharp sell-off in REITs as the cost of borrowing spiked and valuations had to reset.
In our view, REIT valuations now better reflect the rate environment. Areas of the sector also have solid fundamentals, including the potential to deliver earnings growth amid a slowing economy.
But selectivity is key: While supply/demand continues to strengthen in industrial REITs, office and residential properties could be challenged, in our view.

Subscribe