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06/29/2022 | by Sarah Borchersen-Keto

Jay Leupp, managing partner and co-founder of Terra Firma Asset Management LLC, participated in a video interview in conjunction with Nareit’s REITweek: 2022 Investor Conference in New York on June 7-9.

According to Leupp, fundamentals in the REIT industry are “very strong,” amidst a backdrop of global and domestic uncertainty.

Historically, there have been unwarranted fears about interest rate increases, Leupp said. “Over the long and medium term, if fundamentals are strong then REIT share prices generally bounce back from a pullback on an interest rate increase and tend to outperform.”

Leupp said that eventually the current interest rate increases are going to be priced in and investors will start to turn away from what rates are going to do “and start to pay more attention to what are earnings going to do and what are the fundamentals behind faster-growing earnings and outperforming sectors.”

Leupp also said that companies with the highest standards of ESG tend to be the best investments.