Why aren’t REITs up more?

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A lot of REITs own commercial properties, which is not the same as housing. Also housing prices and rent prices/collection are not the same thing.

torommow

Look at SFR reits I believe their stock has correlated closer to the Case Shillermen Index. There’s a good company that writes on Seeking Alpha about all the different reit sectors, I think it’s called HOYA capital, a lot of informative shit about all the different reits

Ars2012

Depends on which REITS you mean. There are some that are up alot. See IIPR (marijuana), MAA (apartments), HASI (renewable energy), and PSA (storage space). You just have to look at the right sectors. Anything with commercial is down bad right now.

homeless_alchemist

Rental properties are generally valued off their cash flow (cap rate) rather than owner occupied housing. It can lead to periods where there is a mis-match between valuations.

Potato_Octopi

Most listed equity REITs don’t mess with housing and most mortgage REITs were damaged due to leverage/covenants. Also, a lot of the good REITs have been issuing equity to buy fucktons of properties, so their share prices will reflect that (AFFO increases have been showing it is worthwhile to issue equity). They won’t rise like c corps shares in this environment, although many bounced back 40-50% since the covid shock. REITs are long term investments. You don’t want them reflecting current high housing prices. They’re a defensive sector, which outperforms over time typically. Beyond that spiel some REITs are up right now. Industrial real estate is still hot. You’ll want to look where cap rates are decreasing to find hindsight of what did well recently, although most any well run REIT was a fantastic purchase since 2020. My main point is you don’t really want them to be down, but you don’t want them to be too high either. Financial health and relative yield is where you look. Strong company trading at 4.5%? Nice. The outperformance comes later historically since real estate correlates with macroeconomic wellbeing provided the companies you own also own the properties.

ThemChecks