KBWY - Logistics REITs: Sorry Out Of Stock

• The coronavirus pandemic has exposed the fragility of global supply chains. Demand for industrial real estate space remains insatiable as businesses scramble to invest in logistics resiliency.
• Order delays and bottlenecks have worsened amid the global economic reopenings, frustrating both businesses and consumers alike. Goods-selling businesses report historically low inventory-to-sales levels.
• The "hub of e-commerce" and the hottest property sector of the last half-decade, industrial REITs recorded the strongest earnings and dividend growth of any real estate sector in 2020.
• The pandemic significantly accelerated the penetration rate of e-commerce, which requires three times more logistics space. While not an immediate risk, tech-driven efficiencies could eventually impair demand.
• Stellar fundamentals rarely come cheap and industrial REITs are priced for perfection. Similar to the red-hot housing industry, the trends of limited supply and robust demand should persist throughout this decade.

For further details see: