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REIT stocks advance 9% in July
Research - AUGUST 10, 2022

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REIT stocks advance 9% in July

by Loretta Clodfelter

Following a punishing second quarter, in which U.S. REITs fell 17 percent, according to the FTSE Nareit Equity REITs Index, listed property stocks bounced back in July, rising nearly 9.1 percent.

The strongest performances were recorded by regional malls, up 15.2 percent in July; lodging/resorts, up 14.4 percent; and industrial, with a gain of 11.6 percent.

Looking ahead to the rest of 2022, Todd Kellenberger, client portfolio manager at Principal Real Estate, recently suggested REITs may serve as an inflation hedge for investors, if historical patterns hold steady.

“Historically, REITs have done a decent job acting as an inflation hedge and have generally outperformed equities in positive inflation environments,” noted Kellenberger. “Real estate may offer a hedge against inflation because not only do rents and occupancies rise with growth, but inflation also increases the replacement costs of property assets and hence property values. REITs have tangible

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