WELL - Anticipating Secular Trends In REITs
Once a secular trend has arrived, it is already priced into the affected stocks. REITs with secular tailwinds like industrial and cell tower REITs trade at premium multiples because they are known to have powerful long term trends supporting demand for their properties. Similarly, retail REITs, which are believed to be afflicted with a secular headwind, trade at significantly discounted multiples. Thus, known secular trends provide little value to stock pickers because they are already baked in. The real opportunity comes in spotting the inflection points before they happen – identifying secular trends that are