The big story of the past few months has been the continued growth in valuation disparities across the REIT sector:
- Cyclical REITs vs. Defensive REITs
- Small-cap REITs vs. large cap REITs
- Retail REITs vs. non-retail REITs
Defensive REITs, large-cap REITs and non-retail REITs have seen their valuation expand dramatically. Investors have rushed to them to seek resilient income in an increasingly uncertain environment with slowing growth and peaking interest rates.
At the same time, a lot of cyclical REITs, small-cap REITs, and retail REITs have seen their valuation drop to historically low levels. As a