A Tactical Opportunity for a Strategic Allocation: REITs on sale for investors

As we exit the second quarter of 2022, the listed real estate market presents an unappreciated opportunity for investors. REITs are down in line with broad markets despite superior trends in fundamentals, with long-term characteristics that are well-suited for today’s outlook.

When we refresh REITs, we find:

  • A market decline equal to broad indices and a double-digit discount to intrinsic values, despite superior fundamentals and a constructive outlook.
  • An opportunity to make an allocation to an asset class that outperforms, provides attractive income, protects against inflation and diversifies portfolios.
  • Advantaged active management: In today’s environment of lower market returns, the need for alpha or excess return is paramount. In a niche asset class, REIT managers can outperform, take advantage of volatility and position portfolios for factors including pricing power and contract duration.

You can now read the full whitepaper at the link below