Is now the right time?
It's been a particularly challenging year for listed real estate in 2022. It has been rapidly repriced to accommodate the new interest rate regime and the expected recession. But now, I think we're moving into a more favorable environment for REIT investing.
While funding costs are higher and growth will slow, REITs enter the recession in a relatively strong position, driven by tight supply and subsequent healthy cash flows.
I will add REITs to diversify my portfolio, there's the Vanguard Real Estate ETF that I keep my eyes on. $Vanguard Real Estate ETF(VNQ.US$ is the symbol on that one. The biggest problem with that is it's very top-heavy. There are some really big REITs like $American Tower Corp(AMT.US$ , $Crown Castle(CCI.US$ , $Prologis(PLD.US$ , $Equinix Inc(EQIX.US$ , but then there's a lot of really small ones. The riskier REIT that I'm looking at right now is $Innovative Industrial Properties Inc(IIPR.US$ .
While funding costs are higher and growth will slow, REITs enter the recession in a relatively strong position, driven by tight supply and subsequent healthy cash flows.
I will add REITs to diversify my portfolio, there's the Vanguard Real Estate ETF that I keep my eyes on. $Vanguard Real Estate ETF(VNQ.US$ is the symbol on that one. The biggest problem with that is it's very top-heavy. There are some really big REITs like $American Tower Corp(AMT.US$ , $Crown Castle(CCI.US$ , $Prologis(PLD.US$ , $Equinix Inc(EQIX.US$ , but then there's a lot of really small ones. The riskier REIT that I'm looking at right now is $Innovative Industrial Properties Inc(IIPR.US$ .
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noglyph : It depends on what you are looking to achieve with the existing and projected market conditions. Generally speaking, REITs are a volatile investment opportunity that may require up to 5-7 years since they are affected by market, economic and industry specific conditions. It is highly recommended to consult with a financial advisor to determine the optimal solution for investing in REITs — $Equinix Inc (EQIX.US)$ is a leading organization throughout the digital economy. With revenue expectations scheduled to exceed $10 Billion by 2025 there is much potential for overall market success.
Wacho-el-Wero : Is it time?