KBWY - KBWY: Value Trap As REITs Face Permanent Structural Changes

• The small-cap REIT market is one of the only segments that still remains near its 52-week low.
• While many investors are attracted to its double-digit dividend yields, declining long-term profitability may mean those dividends are reduced over the coming months.
• The fact is that REITs are distressed due to rising tenant delinquencies, rising interest rates, negative political pressure/support, and businesses shifting toward work-from-home.
• Given the situation, it seems likely that many REITs will see their property valuations decline due to a very expensive market and negative economic fundamentals.
• KBWY's yield may look attractive, but the "recovery" may already be over.

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