Deep Dive: REIT sector focus matters even as sharp discounts abound

Focus on areas with strong rental growth

Valeria Martinez
clock • 3 min read

Real estate investment trust (REIT) investors have been urged to be selective about their property sector exposure, even as the space abounds with bargains.

A series of interest rate hikes in the last two years has affected all industries, but the real estate sector has been among the hardest hit as higher rates have led to increased borrowing costs for REITs, posing performance challenges. "The increased bond yields of the last couple of years, which act as benchmark reference yields against which property is valued, resulted in varying degrees of net asset value (NAV) declines of REITs," said Richard Parfect, portfolio manager at Momentum Global IM.  "Furthermore, it acted as a hit to sentiment which resulted in some significant decline...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now


Already an Investment Week