Equity REITs positioned to perform well in 2023
REITs may have declined by about 25 percent in 2022, but many industry experts believe they are well positioned to perform strongly in 2023.
“Despite the macroeconomic and geopolitical stress points dominating the headlines, our outlook for the global commercial real estate market continues to be constructive,” notes Andrew Duffy, CIO and senior portfolio manager with Ranger Global Real Estate Advisors. “Real estate fundamentals and earnings growth remain strong amidst an environment characterized by low supply in many sectors, paired with high construction costs. While global capital markets continue to experience periods of fixation on non-fundamental factors, we believe that REITs are well-positioned to perform as investor attention turns back to fundamentals as uncertainty and the resulting volatility have likely peaked.”
With the Federal Open Market Committee calling for a 25 basis point increase in the target federal funds rate on Feb. 1, it seems the Fed