COLD - Americold Is Becoming One Of The Best Buys In The REIT Universe
2024-05-02 07:00:00 ET
Summary
- REITs are facing challenges due to potentially prolonged elevated interest rates and sticky inflation.
- Americold Realty Trust, Inc. is a standout opportunity in the REIT landscape, with a unique position as a "mission-critical" provider of cold-storage facilities.
- The company has a robust balance sheet, steady growth prospects, and an attractive dividend yield, making it an attractive buy for long-term investors.
This article was coproduced with Leo Nelissen.
Current times are challenging for real estate investment trusts, or REITs.
There’s no doubt about it.
REITs are in a tough spot, as the mix of potentially prolonged elevated interest rates and sticky inflation puts pressure on some REITs. After all, most REITs do best when inflation is low and subdued rates allow for cheap financing.
For example, the Vanguard Real Estate ETF ( VNQ ) has been unable to gain meaningful upside momentum after peaking in December 2022. Back then, the long bond started to gain downside momentum due to rising rates.
While this is unfavorable for investors with real estate exposure – I’m obviously one of them – it opens up new opportunities....
Americold Is Becoming One Of The Best Buys In The REIT Universe