Motley Fool Money Real Estate Trends w/ Opportunity
Jan 21, 2023
Matt Frankel, a Motley Fool contributor who specializes in real estate investment analysis, shares his insights on the evolving REIT landscape. Discover how REITs differ from stocks and learn about a transforming office REIT. The conversation dives into spotting yield traps and highlights REITs benefiting from e-commerce trends. They also address the current state of the multifamily housing market and the need for affordable housing solutions. Tune in for valuable strategies and market wisdom!
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REIT Performance and Interest Rates
- REITs underperformed the S&P 500 in 2022 due to interest rate volatility.
- Their income-focused nature makes them sensitive to yield changes, impacting prices.
REIT Funding and Growth
- REITs fund growth by selling shares, taking on debt, or reinvesting cash flow.
- Rising interest rates make selling shares less desirable and debt more expensive.
Evaluating Market Trends and REIT Diversification
- Don't immediately believe headlines declaring something "dead"; question them and look around.
- REITs should stick to their areas of expertise when diversifying.