How to get it right with REITs – The Property Chronicle
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How to get it right with REITs


If you plan to play the REITs game next year, here’s what you need to know.

“Bad News for REIT Investors” … “Negative Ratings Bias Rises as North American REITs Confront Effects of Covid-19” … “From Bad to Worse for REITs” … It’s not hard to find articles that talk about how unattractive the REITs sector is right now. However, some of the biggest winners during the covid-19 pandemic have been tied to the REIT sector.

The conventional wisdom is, as another REIT veteran back in the day once said: “Pay attention to what the talking heads are saying on TV and do the opposite – since that is what they are doing.” With that in mind, there are a few sectors that have performed well this year and on which TV’s talking heads are not focusing so much.

Industrial REITs

Having spent most of 2020 working from home, quite a bit of our time (as we must surely all admit) has gone on browsing the internet and shopping from sites such as Amazon and Walmart. Few people know that Amazon and Walmart alone lease millions of square feet from industrial REITs, such as Prologis, Inc. (PLD) and Duke Realty (DRE).

With so many online transactions occurring, the industrial REITs have gained significant tailwinds virtually overnight. A great way to play the industrial sector is through the Pacer Benchmark Industrial REIT ETF (INDS), which owns 14 of the largest industrial REITs on Wall Street. As some retailers have moved away from bricks-and-mortar stores towards website sales, industrial REITs will benefit from the demand generated by the pandemic through online shopping trends.

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About David Auerbach and Mary Jensen

David Auerbach has covered the REIT sector for over 20 years as an institutional trader out of Dallas at Green Street as well as Esposito Securities, and joined World Equity Group in November 2018. He is also a consultant with IRRealized, LLC out of Scottsdale, AZ, helping to build out corporate access with REITs and ETFs connecting the various companies directly to advisors, family offices, and other brokers among other investor outreach initiatives. Mary Jensen, Founder & CEO of IRRealized, LLC, is a proven strategic communicator and capital markets executive with progressive in-house experience in corporate strategy, marketing, business development and investor relations. She has worked in REITs for more than 19 years with several prominent REITs, such as Douglas Emmett, Inc., Healthcare Trust of America, Essex Property Trust, Inc., Spirit Realty Capital and Mack-Cali Realty. She is an active member of the National Investor Relations Institute (NIIRI) and the National Association of Real Estate Investments Trusts (NAREIT).

Articles by David Auerbach and Mary Jensen

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