Heitman: Why REITs now

Some investors who are new to REITs may be concerned that REITs do not provide the same returns as private real estate, or that they will enter the market at the wrong time, according to a report conducted by Heitman, Why REITs now.

The firm examined how REITs behave, their performance over the last two market cycles, their relationship to changes in interest rates, and we are at a favorable point in the market cycle to invest in REITs. 

The paper examined the correlations between REITs and the broader equities universe over an investment horizon of one to 20 quarters. At the onset of the horizon, the correlation between REITs and the broader public equity market is high. However, over time, REITs start to exhibit their inherent qualities as real estate investments, showing strong correlations with private real estate.

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