Most everyone loves an early holiday present. And for some real estate investment trust (REIT) investors, that early gift came in the form of a dividend increase over the past two weeks.
Shares of residential real estate investment trust (REIT) Centerspace (NYSE: CSR) sold with extraordinarily heavy volume and touched a brand new 52-week low.
Although real estate investment trusts (REITs) in general have fared pretty well over the past month, the industrial sector has lagged behind REITs in other property sectors. Rising interest rates and recessionary fears continue to hit this segment of REITs hard.
Investors who bought stocks during the COVID-19 market crash in 2020 have generally experienced some big gains in the past two and a half years. But there is no question some big-name stocks performed better than others since the pandemic bottom.
Higher interest rates — and the expectation that even higher rates are on the way — have made the real estate investment trust (REIT) game a difficult one lately.
There are other factors, to be sure, but this industry is highly interest-rate sensitive and it’s been uncomfortable this year.
Every so often an investor comes across two stocks that are both high-quality performers and also pay solid dividends. Then the most difficult part is figuring out which one is the better buy.
During Fed tightening cycles due to inflation, real estate investment trusts posted positive total returns in 85% of periods with rising Treasury yields from the first quarter of 1992 to the fourth quarter of 2021, according to Nareit.
One of the best things about buying real estate investment trusts (REITs) is that with the right stock an investor can not only gain some appreciation but also procure a solid monthly or quarterly dividend for additional income.