RMRM - Net Lease REITs: High Yield Is Back

• High Yield is Back: Riding the wave of dividend hikes across the real estate sector this year, net lease REITs are once again an attractive source of relatively stable high-yield income.
• Yield-oriented investors can no longer rely on the market-cap-weighted REIT indexes, which are increasingly dominated by a handful of lower-yielding technology REITs - dragging the index average below 3%.
• Strong earnings results confirmed that net lease REITs are again on the offensive. It's back to business-as-usual for these REITs as acquisition-fueled growth kicked into gear while rent collection fully normalized.
• Net lease REITs thrive in the "lower for longer" macroeconomic environment, so concerns over rising rates, inflation, and potential tax code changes have pressured valuations over the past quarter.
• The recent pullback appears to be a buying opportunity for many mid-size and smaller high-yielding REITs, which are trading at wider-than-warranted discounts to their large-cap and growth-focused peers.

For further details see: