Whether looking at global or U.S. real estate, REITs have generally performed very well during times of higher interest rates. But it is important to understand and focus on what is driving interest rates.
Senior Portfolio Manager Jason Yablon explains the key drivers and how active managers can take advantage of the interest rate sensitivity in individual sectors.
ABOUT THE AUTHORS
Jason A. Yablon, Executive Vice President, is Head of Listed Real Estate and a senior portfolio manager for listed real estate securities portfolios and oversees the research process for listed real estate securities.
FURTHER READING
The Real Estate Reel: Where are we in the private real estate cycle?
Rising listed REIT valuations, troughing private commercial real estate prices, and rising CRE debt distress are sending a signal that there may be a light at the end of the tunnel for the broader CRE markets.
A new market regime for REITs
A regime shift to lower rates is a favorable backdrop for REITs, in our view.
The Real Estate Reel: The potential benefits of blending listed REITs and private CRE
Adding listed REITs at certain levels to a private real estate allocation has been shown to increase performance, reduce volatility, and limit drawdowns.