6 Reasons To Ditch High Yield REITs

Published Mon, 21 Dec 2020 13:54:28 -0500 on Seeking Alpha

REITs | Editors' Picks6 Reasons To Ditch High Yield REITsDec. 21, 2020 1:54 PM ET|| Includes: AAT, ACC, ADC, AHH, AHT, AKR, ALEX, ALX, AMH, AMT, APLE, APTS, ARE, AVB, BDN, BFS, BHR, BRG, BRX, BXP, CBL, CCI, CDOR, CDR, CDR.PC, CHCT, CIO, CLDT, CLI, CLNY, CLPR, CMCT, COLD, CONE, COR, CORR, CPT, CSR, CTRE, CTT, CUBE, CUZ, CXP, CXW, DEA, DEI, DLR, DOC, DRE, DRH, EGP, ELS, EPR, EQC, EQIX, EQR, ESRT, ESS, EXR, FCPT, FPI, FR, FRT, FSP, GEO, GLPI, GNL, GOOD, GTY, HIW, HPP, HR, HST, HT, HTA, IIPR, ILPT, INN, INVH, IRM, IRT, JBGS, KBWY, KIM, KRC, KRG, LAMR, LAND, LANDP, LSI, LTC, LXP, MAA, MAC, MNR, MORT, MPW, NHI, NNN, NSA, NXRT, O, OFC, OHI, OUT, PCH, PDM, PEB, PEI, PFF, PGRE, PK, PLD, PLYM, PSA, PSALL, PSB, QTS, REG, RESI, REXR, RHP, RLJ, ROIC, RPAI, RPT, RYN, SAFE, SBAC, SBRA, SELF, SHO, SITC, SKT, SLG, SNR, SOHO, SOHOB, SOHON, SOHOO, SPG, SRC, STAG, STOR, SUI, TCO, TRNO, UBA, UBP, UDR, UE, UHT, UMH, UNIT, VER, VER.PF, VNO, VNO.PK, VNO.PL, VNQ, VTR, WELL, WHLR, WPC, WPG, WRE, WRI, WSR, WY, XHRby: Colorado Wealth Management FundThis article is exclusive for subscribers.Colorado Wealth Management Fund The REIT ForumThe #1 REIT Service Measured By Total ReturnsSummaryHigh-Yield equity REITs have regularly underperformed. We expect that trend to continue over the next decade.
REITs with high yields, low FFO multiples, and weak balance sheets have regularly underperformed.
Instead of focusing on those negative-growth REITs, consider a REIT with a stronger growth trajectory.
One of our recent picks is AMT. We see AMT providing investors with solid growth over the next decade that more than offsets having a lower yield.
If you think FFO or AFFO multiples are going deep enough in REIT analysis, you’re doing yourself a disservice by quitting early.
This research report was produced by The REIT Forum with assistance from Hoya Capital Real Estate.
Thanks to the success of our public series on mortgage REITs, we're testing a series on equity REITs.
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