Market Overview

5 REIT Trends Worth Watching

Share:
5 REIT Trends Worth Watching

  • A new Citi Research report looked at REIT ownership trends over the past year.
  • Citi identified five keys to a bullish outlook for REITs.
  • REIT ETFs are a great way to gain diversified exposure in the space.
  • Citi Research recently released a huge report that took an in-depth look into trends in REIT ownership. In the report, analyst Michael Bilerman broke down five key REIT trends that investors should be watching.

    Rough Year

    So far this year, REITs have plunged about 7 percent. According to Bilerman, this pullback has made REIT valuations much more compelling.

    Related Link: The Top REITs That Mutual Funds Are Buying And Selling

    Turnaround Trends

    Bilerman included the following five trends as reasons to believe that REITs will begin their turnaround in the near future:

    • 1. Pension funds, endowments and foundation investment allocation are on the rise.
    • 2. REIT privatization trends highlight attractive valuations and provide funds for reinvestment.
    • 3. There is increasing acceptance of REITs as a quasi-GICS sector that would lead to further future allocation in the space.
    • 4. FINRA Reg 15-02 has continued to push retail investors away from non-traded REITs and toward public options.
    • 5. Negative funds' flow from dedicated REIT mutual funds and ETFs could soon be on the decline.

    REIT ETFs

    In the report, Bilerman discussed the top individual REIT names held by mutual, pension and hedge funds, but 11.5 percent of all REITs are held by ETFs.

    Traders that want to profit off the five themes mentioned above should consider the largest REIT-dedicated ETF, the Vanguard REIT Index Fund (NYSE: VNQ).

    Alternatively, traders could opt for the iShares Dow Jones US Real Estate (ETF) (NYSE: IYR) or the more diversified Select Sector Financial Slct Str SPDR Fd (NYSE: XLF), which includes approximately 15 percent REIT weighting.

    Disclosure: The author holds no position in the stocks mentioned.

    Image Credit: Public Domain

    Posted-In: Citi ResearchAnalyst Color REIT Sector ETFs Top Stories Analyst Ratings ETFs Real Estate Best of Benzinga

     

    Related Articles (IYR + VNQ)

    View Comments and Join the Discussion!

    Latest Ratings

    StockFirmActionPT
    ARAVH.C. WainwrightReiterates31.0
    QCOMCascendReiterates110.0
    KMPHH.C. WainwrightReiterates2.5
    HASusquehannaInitiates Coverage On27.0
    BFRABenchmarkMaintains18.0
    View the Latest Analytics Ratings
    Don't Miss Any Updates!
    News Directly in Your Inbox
    Subscribe to:
    Benzinga Trading Daily
    Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
    Market in 5 Minutes
    Everything you need to know about the market - quick & easy.
    Daily Analyst Rating
    A summary of each day’s top rating changes from sell-side analysts on the street.
    Thank You

    Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com

    Why Leerink Is Cutting Biogen Targets (But Still Bullish On The Stock)

    Passive Works With Bond ETFs, Too