After weathering a storm of rising rates and market turmoil, listed Real Estate Investment Trusts (REITs) stand poised for a golden sunrise in 2024. Why are experts optimistic?

Here's why we believe this asset class shines bright:

  • Compelling Valuations: After nearly two years of negative returns, REITs present a compelling entry point with historically competitive returns.

  • Resilient Earnings: Strong balance sheets, ample dividend coverage, and contracted cash flows support consistent earnings growth even in a higher-rate environment.

  • Acquisition Advantage: While private real estate faces looming debt maturities and refinancing challenges, we believe that REITs demonstate financial flexibility and seem well positioned to take advantage of potentially lucrative acquisition opportunities.

  • Potential Fed Pause: A pause in rate hikes, historically a catalyst for REIT performance, could unlock further upside potential for the asset class.

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