Hey everyone, wanted to get thoughts on investing in REITS in this current climate? If the financials are solid (PE/EPS/DIV) does it make sense for a long term (2+ year) hold?
Preston | Investor Insight's avatar
VERY dangerous! I think real estate is the next sector to get smoked.

Higher Interest Rates = Bad for Real Estate.

We also are seeing a slow down in housing demand currently.
Joshua Simka's avatar
Hi @dondraper, welcome to Commonstock! I think what @investorinsight is saying makes sense but also it's going to depend on what kind of REIT you're looking at. There are lots of different kinds of REITS--hospitality, residential/multifamily, office, industrial... Some are more sensitive to interest rate changes than others. I'm not an expert but some Commonstock members who might have more insight to offer are: @orlandooh @reasonableyield @stock.owl @dapper_dividends
Luka 🦉's avatar
I am oriented in Residential REITs, companies like $ESS or $AVB - they are under stress right now (like of course the whole market) but I believe they have the right fundamental to navigate an high inflation/interest period. I am not increasing my position anyway right now..