2024-01-29 06:12:27 ET
Summary
- The REIT sector has partially recovered in the last months of 2023; however, Camden Property Trust is still lagging behind.
- The company had a slow year as they exited their best year on record (2022), and are dealing with temporary headwinds.
- The current price seems like a good opportunity to accumulate while waiting for the oversupply and interest issue to ease.
The REIT sector has experienced a small revival in the last quarter of 2023, following the Federal Reserve hinting that the hiking cycle is effectively over and 2024 will finally see interest rates actually decline. Although there is still a debate ongoing regarding how soon and how quickly rates will actually fall, it is pretty much a given that this is pretty good news for real estate companies. REITs must rely on debt in order to grow as real estate projects require a lot of capital to complete, therefore the sector has suffered a lot for the past few years. The Vanguard Real Estate ETF (VNQ), a good proxy for the REIT market as a whole, is up about 17% in the last 3 months, despite taking a break in the last couple of weeks as some investors probably took the chance to lock in some profit....
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Camden Property Trust: The Headwinds Are Only Temporary, Time To Accumulate