Gaining Perspective

The rise in global interest rates is driving a “great reset” of real estate values. With the ongoing correction in private markets, REITs offer an attractive entry point with valuations at historic lows. In addition, a number of factors favor REITs: Large differences in valuation between public and private RE markets, while rare, have historically benefited REITs. REITS have historically outperformed the S&P post-Fed tightening cycles. REIT sectors are more concentrated in areas with strong sector secular growth, including senior housing, industrials, data centers, and residential/specialty housing. If the real estate repricing process continues, there will be a wave of consolidation as well-capitalized firms buy attractive properties at steep discounts. Longer-term, falling rates combined with an imbalance of supply and demand will be bullish for REIT valuations. - Here is a link for more information about Rick and PGIM: PGIM Select Real Estate Fund- https://www.pgim.com/investments/mutual-funds/pgim-select-real-estate-fund US Real Estate Fund Performance- https://www.pgim.com/investments/getpidoc?file=8CE3D7D87B7CAE1285258138004284B8 Rick’s Latest Perspectives on REITs- https://www.pgim.com/real-estate/commentary/manager-minutes-inflection-point-reits A message from Advisor Perspectives and VettaFi: To learn more on this and other topics, check out our full schedule of upcoming CE-approved virtual events.

Show Notes

The rise in global interest rates is driving a “great reset” of real estate values. With the ongoing correction in private markets, REITs offer an attractive entry point with valuations at historic lows. In addition, a number of factors favor REITs:
  • Large differences in valuation between public and private RE markets, while rare, have historically benefited REITs.
  • REITS have historically outperformed the S&P post-Fed tightening cycles.
  • REIT sectors are more concentrated in areas with strong sector secular growth, including senior housing, industrials, data centers, and residential/specialty housing.
  • If the real estate repricing process continues, there will be a wave of consolidation as well-capitalized firms buy attractive properties at steep discounts.
  • Longer-term, falling rates combined with an imbalance of supply and demand will be bullish for REIT valuations.
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Here is a link for more information about Rick and PGIM:
A message from Advisor Perspectives and VettaFi: To learn more on this and other topics, check out our full schedule of upcoming CE-approved virtual events.

What is Gaining Perspective?

This podcast is hosted by Advisor Perspectives, one of the leading publications for financial advisors. Our podcast series brings you short interviews with top thought leaders in financial advice, planning, investments and economics. Each episode focuses on a specific issue facing financial advisors. Listeners will learn the key trends affecting the way they and their competitors operate and the steps advisors can take grow their practices and deliver better service to their clients.