Important Warning for REIT Investors About 2025

A lot of investors are selling real estate investment trusts because long term interest rates are rising with the 10 year treasury now offering a near 5% yield. Many REITs offer lower dividend yields than that. But I am here to give you a warning: REITs could recover in 2025. Their valuations are the lowest in years and we expect interest rates to soon resume their trend to lower levels. I highlight a few of my top REITs for 2025. Relevant topics include REITs vs. bonds, REITs vs. treasuries, REIT interest rates, and REIT growth.

Image sources: NAREIT, YCHARTS, EPRA, Canva

Important Disclaimer: I am long the REITs mentioned in this video. This video is impersonal and does not provide individualized advice or recommendations for any specific person. Viewers/readers should not make any investment decision without conducting their own due diligence and consulting their financial advisor about their specific situation. This video is for entertainment purposes only and you are responsible for your own investment decisions. The information is obtained from sources believed to be reliable, but its accuracy cannot be guaranteed. The opinions expressed are those of the publisher and are subject to change without notice. This YouTube channel is managed by Leonberg Research OÜ, a subsidiary of Leonberg Capital OÜ.

#reits #dividend #passiveincome

[askjussi]

What REITs are you buying following the recent dip? Stick till the end to find what I have been buying.
Thank you for your support!
Jussi

[jonathanfoster]

as a retiree I'm in a modest REIT position for income. If the income stays steady I'm staying in them for the long haul.

[michaelak]

Thank you, loved your 5 horsemen email. I am holding and adding to what i have on dips.
ADC, VICI, MAA, WPC & EPRT. Thank you again for all you do!

[marldanford]

I've owned AGNC and NLY for the last 3 years. There is a random 10% price shift up and down which I have come to accept. It is during these pullbacks where I add more, reinvesting the Dividends for a 15% return. If the investment pays less tan 10 to 12% I am not interested. I'm 73 year old and have lived through 3 Real Estate crashes. Today homeowners are too greedy and are setting on their overpriced houses. The demand is strong but the young buyers are smart biding their time for a reasonable price.
AGNC and NLY provide the most bang for the buck on Real Estate paper not physical property ownership.

[Biz]

Been buying VICI on the dip and will pick up more EPRT if it drops, thanks Jussi!

[SupportSuccessAcademie-cjss]

Like and comment and 100% watch time to support the channel as usual. I encourage everyone to do this, it takes 30 sec, while Jussi spends countless hours to produce content.

[Bruxy]

Great content like always Jussi! Thanks for all you do!

[sagig]

Very much agree with you. This entire fear will at some point go away. I think the tipping point is actually quite near and I expect it would happen when the Fed will finally stop QT and stop selling bonds and lowering balance sheet. Once this happens 10-yr bonds will go higher (interest lower) and it'll make mortgage rates go lower and the real estate market will thrive.

[davidwysocki]

Thanks, Jussi, for an excellent presentation on the long-term investment opportunities in REITs. I remain fully invested in REITs, including ADC, ARE, BRX, CUBE, EPR, KIM, NNN, O, PLD, STAG, and VICI. I also recently invested in a new Cohen & Steers' closed end fund, RLTY, which invests in many REITs I have not invested in and also invests in preferred stocks I do not own.

[joeyojoeyo]

I am back in, bought many several days ago.

[steveshaver]

Excellent buying opportunity for long term investors. Keep cost averaging down.

[mitchcuttingedgerealestate]

PAX is also another one right up there with VTMX that's staying down and great buying opportunity. I saw you recently added more shares of it. Let's go!

[TheAhmedvienna]

I am very warey that the bond rates are not following the fed. I always thought that the inflation is not going away soon. Still I'm with nnn or adc.

[financeguy]

Jussi in the long run lower REIT prices and higher rates are good for you, they equal a higher long term return.

[claudiox]

REITs are for long term guys. Definitely

[MMinvest]

Reits are not dependent on rate cuts in the FED funds rate.
It is all about the 10 year treasury and long term rate expectations.

[forestmotoadventures]

Still only keeping premium REITs like SPG ADC…holding CCI even though they suck balls…too much pride to sell and a small loss…of course you have to double down Jussi, you are talking your book. Glad I am unconstrained. Good luck. 🤞

[zdenekreischig]

I'm just looking into VESTA...based on what i see innumbers from september, with current market cap of about 2.11B USD and 117 Mil of FFO for first 9 month its safe to assume that FFO for the year will be around 160Mil so they are trading at about 13 times FFO... ok seems nice...BUT - it seems that 60 out of those 117 M is tax expense. This is a big difference against US Reits - there would be no taxes, so those 120M would be "real money". That should be mentioned imho in the video. It's still ok I guess. At the end, geopolitical risk is dealbreaker for me.

[ukikiki]

We need some update on cci. Its crashig very hard😢😢😢😢 is it really good for retirement Portfolio?

[mathiaspilegaard]

Hey Jussi, thanks for a market update!

Any thoughts on UK REITs like BYG following the recent dip? From my understanding there seems to be major concerns about the UK economy and rising interest rates at the moment.