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
Why invest in listed REITs today
REITs have outperformed stocks and bonds when yields and growth move lower. Demand is healthy while supply is constrained. And REIT valuations relative to the broader equity market are meaningfully below the historical median.
The Real Estate Reel: A closer look at Q1 REIT returns and what may be next
Listed REITs were down for the first quarter as markets adjusted to a rise in real rates, but we believe the outlook is positive in hard, soft and no-landing scenarios.
3 Reasons to own listed REITs today
We see compelling evidence to own listed real estate in the current environment.