Real estate owners’ ability to reprice and increase rents, thereby passing on costs to renters, provides REITs with characteristics that protect against inflation, according to Duff & Phelps Investment Management Co. in its June report.
At the same time, REITs today possess strong fundamentals while pricing at a discount to NAV, thus providing a compelling potential value investment opportunity. These unique factors — amid high inflation, increasing interest rates, and recession fears across equities markets — make REITs a rare road to stability and compelling market performance.
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