Why REITs Have Been Crashing This Year

Over the last two years the majority of the real estate investment trust sector has been taking a beating. Just by taking a look at the Vanguard Real Estate Index Fund ETF, we can see that after REITs recovered from the pandemic plunge, things began to take a downturn starting in late 2021. Since March of this year, Vanguard’s REIT index fund hasn’t seen much movement up or down; rather, it’s just been moving sideways. Other alternative asset classes, including business development companies and even the broad market overall, have been recovering this year. But REITs have been stalling out in terms of recovery. As an investor who holds a lot of REITs, it’s something that I’ve been keeping an eye on for a while.

There've been a couple issues facing the REIT sector, so in today’s video we’re gonna cover the issues that these companies are dealing with right now. I’ll also give my opinion as to when this sector will finally start seeing a good recovery. And then I’ll also present a few REITs that are so heavily discounted that they’re now offering exceptionally high yields and have good growth potential.

#dividendinvesting #dividends #dividendstocks

[james.atkins]

Real estate can offer various advantages like generating regular income, tax benefits, building equity, delivering competitive returns while managing risk, and protecting against inflation. Whether you invest in physical properties or Real Estate Investment Trusts (REITs), it can help diversify your portfolio and lower risk. Personally, I got interested in investing in REITs because of the dividends they provide, which is a fantastic way to grow wealth. I currently hold AMT, CCI, and PSA, and I made $290k in profits in 2022.

[Football__Junkie]

Something they won’t tell you is that the best performing properties are not put into the REIT and put into their own private fund.

[raynoldgrey]

I purchased ETFs in Amazon, Tesla, and Meta. I expect that the downturn will get worse since the stock market fall, recession, and inflation will damage all markets, not only FTX. My dollar stock portfolio is in the red. I'm always losing money because of inflation. This planet will crumble under the weight of its financial tyrants. If you are considering retirement but are anxious that your pension won't cover the rising cost of living, I apologize. All across the world, there are disastrous foreign policies as well as bad regulatory, economic, and energy policies.

[Investing_With_Andrew]

Very nice video! I think this is normal in this economic environment. I am happy however because I found several nice REITs to buy at good prices in the past ~1 year. As you said, many of them are currently undervalued. I don't mind waiting for rates cuts for them to start recovering

[arigutman]

REITs are about to be great investments as they come down in, ready with a ton of money to invest!

[hammerfist]

5-6% is not high. The sweet spot for our economy is likely between 4-7%. If a REIT is dependent on 2%interest rates for success, it's not a good investment.

[ayoutubewatcher]

I started new positions in Realty Income, American Tower, and WP Carey, will continue to add for the next 5 years, I'm very happy with my entry price's and want more downside.

[KittyAKan]

Most companies are letting their employees to work from home is one of the reasons too. Let's think about WeWork! May God bless the commercial office owners 😢

[rebeccaartgallary]

as someone said, 5-6% is not high. The sweet spot for our economy is likely between 4-7%. If a REIT is dependent on 2%interest rates for success, it's not a good investment.The erosion of my financial reserves due to inflation adds to my concerns. At this point, I'm still at a crossroad regarding whether or not to liquidate my $138k stock portfolio. What’s the best way to take advantage of this current market?

[TwitchRadio]

I think I'm going to hold off on these till closer to Q2 next year and see... but honestly I rather invest in infrastructure like cell phone towers, Farmland logging land aquaculture land in general, and other assets that just can't go away because if the macro is saying that offices are fading out and are going to go away by at least 50% in the next 10 years.. I'm staying away from that maybe private resident REITs or apartments are okay but want nothing to do with Office Buildings unless they are well-established and have no plans on leaving

[rockystaatz]

Some have had to do reverse splits and even reduce dividends but most are solvent for years people just don’t understand how stocks work or what they do usually

[theocratickingdom]

O is killing me this year and it keeps going down.

[jonnybike]

Making affordable housing such as apartments is so important. The high price in California for housing is insane. Apartment prices must be sustainable by being affordable.

[davidless]

Does it really matter if they are down? as long as they are still paying the high dividend yields which I believe most still are. After all isn't that the main reason we are invested in these?

[rynewilliams]

Awesome video man, it's been a treat to be able to buy WPC at such low prices lately.

[InvestingWithKevin]

Omg this insane I was just thinking what in Hell is going on O has dropped so much I’m so scared right now

[scottlink]

I am doing alright. I have O, STWD, SPG, WPC and VICI

[scottjohnson]

I would argue that when rates were rock bottom, that would have been the right time to lock in rates, even though you would pay slightly more being locked in.

[Coodeville]

I just sold a few . Put it into CDs for now at 5.7 %

[CENA]

Now may be the best time to invest in reality income it’s been so long since it’s been this low in share price long term gains are on the way picked up 13 shares today