EQIX - COVID-19 'winners' among REITs deserve second look into earnings Mizuho says

A preview of earnings for the real estate investment trust sector has Mizuho looking for a bit more winning from the "winners" of the COVID-19 pandemic so far. The reopening trade that has driven REITs to outperform the broader market still has some legs, the firm says, particularly with some easier comparisons on the way. And that points to same-store net operating income improvement as the year rolls on, Mizuho says. But the focus moves to fundamentals now, given that "the easy money has been made in the recovery trade, valuations are more full (especially Apartments and Senior Housing), and interest rates are expected to continue rising." And so it's sticking with a "barbell" approach it advocated earlier in the year focused on relative value among sectors and names with improving prospects, but also on "value names" that featured upcoming catalysts despite sitting in less-preferred REIT sectors, like Hospitals and

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COVID-19 'winners' among REITs deserve second look into earnings, Mizuho says