Twitter and Facebook suggested me this interview from NAREIT about investing in REITs.
The basic investment thesis is that REITs are quite undervalued and offer good potential returns- It has done in many cycles including 9/11 and 2008 financial crisis.
Active management and selecting good properties with a framework of 3-5 years will work out.
People need a place to live and work so housing REITs are good.
For now, we need to wait out until we have more direction about COVID.
Very nice to hear when professionals agree with your thesis.
I am long Blue Residential Growth REIT (BRG) and Independence Realty (IRT). These REITs have multifamily residentials in areas where the cities are affordable and growing- So very nice uptrend, plus they have nice dividends 4%+
IRT has recovered a lot more than BRG, so BRG may have more room to run.
The speaker discusses that industrials and data centers may be good investments-
I agree totally- But they are quite well valued. So not much opportunity there-
The targets are commercial/ office real estate that has been decimated.
They can offer extreme returns if you buy the right properties/REITs.
But for now, I am a bit cautious. First, I would need to see more people coming back to work. Some workers have went back to work. I can clearly see from the traffic and the number of empty parking spaces around my neighborhood. But I need more-
I am following Empire State Realty (ESRT) and Kilroy (KRC). I am betting that both won’t go bankrupt. And I am betting the NYC, SF, and LA despite the pandemic is not totally destroyed.
The stocks offer 40%+ according to Tipranks- And the RSI shows that they are oversold. Yes, they have good properties-
However, I will still wait a bit more. I would want to see more insider buying and hedge funds putting some money in.
For now, I am happy with IRT and BRG.
As always do your due diligence and manage your risk.
Thank You Jesus for all Your blessings. Let us be thankful for the land that we are standing on. Let us bless and heal the land. Amen-
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