Barron's Streetwise
Looking for Deals in Rundown REITs
Oct 12, 2023
Richard Anderson, Head of U.S. REITs at Wedbush, discusses the poor performance of REITs this year and potential recovery next year. They analyze upcoming earnings reports, predict earnings growth for the sector, and discuss potential catalysts for positive attention. They also highlight favorite REIT stocks and correlation with interest rates.
31:12
Episode guests
AI Summary
AI Chapters
Episode notes
Podcast summary created with Snipd AI
Quick takeaways
- US REITs are undervalued and may experience a rebound in the future, with potential consolidation in commercial real estate in 2024.
- The third quarter earnings reporting season for S&P 500 companies is expected to show zero growth, but excluding the energy sector, index earnings are projected to grow by 5%.
Deep dives
REITs poised for recovery in the aftermath of Fed's tightening campaign
REITs (Real Estate Investment Trusts) have underperformed the stock market by 22 percentage points, creating a valuation perspective. The head of US REIT coverage at Wedbush, Richard Anderson, believes there will be a wave of consolidations in commercial real estate, bringing positive attention to REITs in 2024. He suggests that historical data shows REITs outperform in the aftermath of the Fed's tightening campaign. Anderson advises cautious entry into REITs, highlighting the importance of supply and demand dynamics in different sectors such as multifamily, senior housing, and gaming REITs. He also mentioned that office REITs may face challenges due to the work-from-home trend.
Remember Everything You Learn from Podcasts
Save insights instantly, chat with episodes, and build lasting knowledge - all powered by AI.
