The real estate sector was punished in 2022 due in large part to rising interest rates, but the group’s above-average income, diversification benefits, and inflation-fighting track record remain sources of allure.
For investors willing to allocate capital to real estate investment trusts (REITs) as a 2023 rebound wager, there are encouraging factors to consider. Those include the point that following the financial crisis in 2008, REITs prioritized balance sheet sturdiness – an effort that continues paying off for investors today.
“These structural changes to the real estate market, in addition to REITs historically rewarding investors well over the long run, have helped investors feel more confident in this asset class. Since the beginning of the modern-REIT era in 1991, REITs’ annualized returns have outperformed the U.S. stock market more than 56% of the…
