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- Manlobbi
Halls of Shrewd'm / US Policy❤
No. of Recommendations: 0
I own a reit fund for diversification, but I am wondering if I should sell it, because both office buildings (due to working from home) and shopping malls seem to be dying industries.
Does anyone have an opinion on this?
No. of Recommendations: 4
I own a reit fund for diversification, but I am wondering if I should sell it, because both office buildings (due to working from home) and shopping malls seem to be dying industries.
Does anyone have an opinion on this?
That would be a smart way of deciding, if you believed that the broad market didn't realize long ago that office buildings and shopping malls are a dying industry.
Elan
No. of Recommendations: 1
Funny I was thinking this weekend I need to start looking for bargains in the REIT sector.
Probably best to stick with the highest quality for now.
I am going to look at SPG, CCI and DEA for starters.
No. of Recommendations: 0
This was an article in CNBC over the weekend
https://www.cnbc.com/2023/04/09/the-coming-commerc...There was a hedge fund which made about 2BN+ betting on the mall crash pre-COVID. So its a bit of common knowledge
- although I think that's where the contra effect has been - ie post COVID - people have been thronging malls again.
But footprint has shrunk - and long term - likely going to persist.
The Office /Commercial also likely to converge into some sort of plateauing - ie some buildings ( esp the very pricey ones) - are possibly not coming back.
Mark - I am sure you know - all REITs are not equal - since you own a diversified fund - find out its exposure etc. You can find global RE and Mortgage REITs too -
not saying they are great - but in some sense there are options
No. of Recommendations: 0
It's a fund. Cohen & Steers Real Estate Securities A CSEIX. It has a mixture of properties. Some towers, some digital storage, some public storage, but also some malls, and some shopping centers. Morningstar likes it, but they can be wrong.
No. of Recommendations: 3
I'm wondering about Brookfield (BAM & BN) which Jim was recommending a year or 2 ago.
No. of Recommendations: 2
RayVt
Manlobbi, Baybrooke and others have some good posts about valuations etc on the Shrewd'm BN board.
Craig
No. of Recommendations: 1
It's been years since I read it so I have no cite but there is research showing that adding REITs does not help your portfolio over time.
That doesn't mean in some period or other it isn't a good investment, but not overall.
No. of Recommendations: 2
There are many high quality high yield REITs out there.
At the moment the subsector to avoid is commercial office real estate, not so much due to bad forecasted performance from office vacancy but from the herd effect around that risk.
When interest rates are rising, the REITS and REIT preferreds get hit just like bonds do, driving up the yields. Now that rates are stabilizing, several high quality REITs' prices are starting to rebound due to the extremely attractive yields from those that have great AFFO, especially in other sectors.
For research, there are a number of REIT focused groups / authors on Seeking Alpha. One of the top ones is Brad Thomas.
BN/BAM have some complicated machinations to follow but are two of the biggest RE owners.
FC
No. of Recommendations: 0
I was limited to what was in my 401k, so I switched to a 1/2 s and p 500 index, and a 1/2 total international index fund.
