The carnage in the real estate investment trust sector continues as new names hit new 52-week lows. The effect of rising interest rates is hitting the group hard and it’s not clear when the Fed might “pivot” to lower rates – late 2023, early 2024? In the meantime, these rate-sensitive REITs are not attracting buyers the way they used to.
Real estate investment trusts (REITs) are well-known for paying huge dividends. Although investors love when REITs increase their dividends, another significant event occurs when a REIT announces share buybacks.