Despite the recent rally, there still exists some generational buying opportunities among smaller and lesser known REITs. Companies that generally trade at 3-4% dividends yields are now offered at 6-8% yields, and offer 50-100% upside potential before they reach their former highs.
We believe that this is particularly true for net lease and apartment REITs because they are well positioned for a rapid recovery:
Net lease REITs own service-oriented properties with >10-year leases. Some rent payments are missing right now, but as we reopen the economy, rent payments will resume and most will remain at