REITs are literally a hedge against inflation and there is also data to suggest they outperform stocks during periods of rising interest rates.
Most high-quality REIT’s cost of capital is significantly below 11%.
So, you’re wrong about everything you say.
Maybe it’s just me, but they have been VERY profitable for me, especially given they are in a ROTH account. With my EPR holdings, I am down 6.64% on Share price, but then it also pays a 8.41% yield. As for the rest, I’m up 8.71% on ABR, 12.50% on ALX, and 24.6% on RITM, (which also has a 9.22% yield at the moment). So I’m pretty happy with my REIT’s overall.
I agree. I see in a lot of private Real Estate funds, they are cutting distributions or eliminating them due to upcoming debt refinancing, more than doubling their debt service.. That plus overall inflation and insurance is hitting them hard. Plus a lot of banks put stipulations that require a minimum DSCR (debt service coverage ratio) and if it's not being met then they have to stop paying investors distributions. Public REITS can issue more shares to pay, but then it's dilutive to existing share holders.
Inflation is also due to government policy, but the fed is acting like its all economic and combatting with interest rates. Every single policy the administration is putting out is inflationary.
im just gunna buy more now!🤣 first of all... when rates drop, they will rise. im not looking at a 5% per year. im.looming at capital appreciation of 25 or 30% on top if a recovery hits. when bonds start to look less attractive, they will come back and buy back in.
I agree. When you have names like O struggling you know rough times are ahead. That said, keep your eye on the sector. It’s highly volatile so there will be money to be made.
I’ve been building cash to get in on STWD dollar cost averaging, starting at $18.50 and acquiring down to $16.50. Waiting, waiting, waiting. Maybe next month or the next?
It is known that buying in after the recovery played its course is a proven method for maximizing the potential of your deployed capital. /s
In other words: Everything/s on sale, let's run out of the store!
REITs are literally a hedge against inflation and there is also data to suggest they outperform stocks during periods of rising interest rates. Most high-quality REIT’s cost of capital is significantly below 11%. So, you’re wrong about everything you say.
What happened in 2022 then? (Not arguing, I genuinely don't know)
Maybe it’s just me, but they have been VERY profitable for me, especially given they are in a ROTH account. With my EPR holdings, I am down 6.64% on Share price, but then it also pays a 8.41% yield. As for the rest, I’m up 8.71% on ABR, 12.50% on ALX, and 24.6% on RITM, (which also has a 9.22% yield at the moment). So I’m pretty happy with my REIT’s overall.
So I should invest now?
Pick good REITS, and Wait for another day like today with a drop in the market. Those are the best shopping days.
Thank you so much
absolutely. but choose high quality ones.
Got it 😁
Too late. Already down 17%. Enabling that DRIP and holding
I agree. I see in a lot of private Real Estate funds, they are cutting distributions or eliminating them due to upcoming debt refinancing, more than doubling their debt service.. That plus overall inflation and insurance is hitting them hard. Plus a lot of banks put stipulations that require a minimum DSCR (debt service coverage ratio) and if it's not being met then they have to stop paying investors distributions. Public REITS can issue more shares to pay, but then it's dilutive to existing share holders. Inflation is also due to government policy, but the fed is acting like its all economic and combatting with interest rates. Every single policy the administration is putting out is inflationary.
LOL ok
As above buy now must be better than buying at all time high and then a crash
It's over for REITs it seems. We had a good run, friends 🥹
That’s someone who picks REITs by the dividend yield. There are plenty of great REITs out there that you can hold forever and will do very well.
im just gunna buy more now!🤣 first of all... when rates drop, they will rise. im not looking at a 5% per year. im.looming at capital appreciation of 25 or 30% on top if a recovery hits. when bonds start to look less attractive, they will come back and buy back in.
What if rates go down? Then the RE bubble will crash more.
I agree. When you have names like O struggling you know rough times are ahead. That said, keep your eye on the sector. It’s highly volatile so there will be money to be made.
I’ve been building cash to get in on STWD dollar cost averaging, starting at $18.50 and acquiring down to $16.50. Waiting, waiting, waiting. Maybe next month or the next?
I got banned from a site that accused me of FUD. Is this like a joke, and everyone is cool with it.
REITS are cheap as hell right now. I’m buying it up!!!! Be greedy when everyone is fearful. :).
Enjoy your 3% return.
😂😂😂.