8-12% Yielding REITs: One To Buy, One To Avoid (It May Cut)

2025-05-20 09:15:00 ET

Summary

• Since the COVID-19, REITs have experienced massive waves of volatility.
• Now, the REIT segment seems to have finally stabilized.
• The good thing is that the stabilization has occured at a level that offers decent entry points for long-term investors.
• Another aspect that helps REITs is the flight-to-quality and to inflation-protection areas.
• In this article I discuss 2 high-yielding REIT picks. In my view, one is a buy and the other one is a value trap.

Real estate investment trusts or REITs have exhibited elevated volatility levels since the outbreak of COVID-19. At the early days of COVID-19, REITs plunged in line with almost all other asset classes. Then the sector experienced a decent recovery as the Fed implemented an ultra-loose monetary policy. However, in 2022 the party ended and took the opposite direction because the Fed had to reverse its policy in an attempt to combat inflation. Things were made worse by the struggling office segment, which consumes quite a sizeable chunk of the total REIT universe....

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