REITs Offer Defensive Play Amid Market Volatility, Tariff Challenges
Real Estate Investment Trusts (REITs) have historically offered attractive returns, especially during stock market volatility. Several hedge funds, including Exchange Traded Concepts LLC, have recently increased their holdings in Innovative Industrial Properties Inc. Meanwhile, the office market is showing signs of recovery, and REITs are seen as a defensive play during stock market disruptions.
REITs like Arbor Realty Trust, Inc. (NYSE:ABR), focusing on multifamily properties, and Universal Health Realty Income Trust (NYSE:UHT), specializing in healthcare and human services properties, offer high dividend yields of 10.75% and 7.59% respectively. Innovative Industrial Properties, Inc. (NYSE:IIPR), a cannabis-related facilities REIT, boasts an impressive dividend yield of 13.75%.
REITs' lease-driven income and predictable cash flows make them an attractive option during stock market uncertainty. However, tariffs may impact certain real estate segments differently. Industrial real estate, retailers, and construction companies could face challenges due to tariffs.
REITs continue to draw investor attention, with hedge funds increasing their stakes in REITs like Innovative Industrial Properties Inc. The office market's recovery and REITs' defensive nature during stock market dislocations further highlight their appeal. However, tariffs pose potential challenges to specific real estate sectors.
Read also:
- HLC Approves ₹4,645.60 Crore for Flood Recovery and Wetland Rejuvenation in Nine States
- Crooked House Pub's Demolition: Council Orders Rebuild, Debate on Historic Building Protections
- Shaping India's Economic Progression: Readying the Financial System for Tomorrow
- Conflict between Ben & Jerry's co-founder and Unilever over Gaza issues leads to resignation of co-founder
