CPT - Follow The Money (Blackstone): 3 Strong Buy REITs

2024-03-29 07:00:00 ET

Summary

• The real estate market is experiencing declines in prices, particularly in office and apartment values.
• Blackstone suggests that the real estate market has hit bottom, presenting opportunities for investors to capitalize on distressed sales.
• Private equity firms have substantial cash reserves ready for investment, making high-quality REITs like Crown Castle, Camden Property Trust, and Alexandria Real Estate Equities attractive options for investors.

This article was coproduced with Leo Nelissen.

Although I’m not bearish, I have written a number of articles with a mildly bearish tone, as I am in the camp of people who believe that we are in for a prolonged period of elevated interest rates and sticky inflation.

That’s why I have hammered so much on the importance of owning high-quality real estate investment trusts, or REITs, with top-tier balance sheets.

After all, if rates remain elevated, we will likely see an increasing divergence between the strongest REITs on the market and “everyone else.” (i.e., avoid chasing sucker yields, folks!)...

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