SPG - REITs In 2019: Bargain Bin Or Bad Buys?
2018 was a rather forgettable year for stock market returns, real estate investment trusts (“REITs”) included. The sector was up low single digits as an asset class last year, and investors appear more hopeful that 2019 brings fatter returns. For investors, the questions are clear, but the answers are elusive: Will the economy keep chugging along, boosting same-store net operating income (“NOI”) metrics? Will trends in interest rate policy, recent pricing action notwithstanding, put pressure on longer term Treasuries and, by extension, cap rates? How should investors treat management teams that are resoundingly bullish yet,