When it comes to outlook for REITs, recent interviews with analysts revealed an optimistic regarding 2014. While job growth and gross domestic product numbers could be better, tight supply in most sectors means the economy need not be going gangbusters to offer reasonable total returns in REIT stocks.
That said, worries persist about the potential for the Federal Reserve’s tapering of its easy monetary policy, which would likely lead to a rise in interest rates and cost of capital. Analysts interviewed by REIT magazine also cited political gridlock as a concern.
At the sector level, all agreed that industrial REITs would benefit from a continued economic recovery, but opinions were more mixed for groups like multifamily, malls, and self-storage. Suburban office was mentioned most often as an asset class to potentially underweight.
REIT: How would you describe your investment philosophy and strategy?
REIT: What were some of the underlying factors of your fund’s solid performance in 2013?
REIT: What does the rest of 2014 and beyond look like for REITs and publicly traded real estate companies?
REIT: What sectors look the most promising?
REIT: What concerns do you have about the real estate investment market?
REIT: What attributes do you look for in a company to open a position?
REIT: What type of an exit strategy do you use?
REIT: What are your thoughts on interest rates and how has the uncertainty affected your investing?