Beaten up real estate sector remains key piece of client portfolios while offering potential buying opportunity today for those with longer runway for growth
“It’s a very challenging environment so far this year,” says Terri Szego, senior portfolio manager and senior investment advisor at Szego Jones Szego Lawrence Wealth Management at BMO Nesbitt Burns Inc. in Toronto, whose client portfolios typically have about five to 10 per cent allocated to REITs.
Of course, many clients are unlikely to shed their REITs because the asset class is foundational to most portfolios, says Darren Coleman, senior vice president, private client group, and portfolio manager with Coleman Wealth at Raymond James Ltd. in Toronto. “Plus, there’s so much variation within real estate that people can really tune into types that match their risk profile and their outlook on conditions,” he says.Indeed, REITs come in a wide variety from multi-family and office to industrial, even broken into subsectors covering data centres, health care facilities and cell phone towers.For example, industrial has been in high demand, driven by the growth of e-commerce that peaked during COVID-19 lockdowns.
“Sometimes, market sentiment swings to extremes more than it should,” says Michel Massaad, founder of REIT Report in Montreal, which aggregates online news focused on the Canadian market. Corrado Russo, managing partner and head of global securities at Hazelview Investments in Toronto, contends most current anxieties about real estate have already been priced into the market. He further notes that, historically, and contrary to popular perception, real estate fares well during most periods of rising interest rates even outperforming broader equities.
Another consideration is that bad news – like the recent interest rate hikes and future ones – is already priced into most REITs, and the worst may be over. In a, most economists predicted the Fed’s overnight rate will reach 3.5 per cent by the end of the year.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Three things: Jays’ Kevin Gausman leaves opening -game loss after being hit by line driveThree things you need to know about the Blue Jays’ 6-2 loss to the Rays at Rogers Centre in the first game of Saturday’s doubleheader:
Read more »
BEYOND LOCAL: Humans want to anthropomorphize things and that makes spotting sentient AI hardRather than focus on the speculative rights of sentient AI, we need to address human rights
Read more »
BEYOND LOCAL: Humans want to anthropomorphize things and that makes spotting sentient AI hardRather than focus on the speculative rights of sentient AI, we need to address human rights
Read more »
Stampeders' offensive line off to sizzling start this seasonThere’s a lot that has gone right for the Calgary Stampeders this season.
Read more »
Stampeders' offensive line off to sizzling start this seasonThere’s a lot that has gone right for the Calgary Stampeders this season.
Read more »
British Army’s Twitter and YouTube accounts restored after hackAccounts were used to post about cryptocurrencies, NFTs and the British Army’s YouTube account was renamed to ‘Ark Invest’
Read more »