According to research by State Street, real estate is one of the worst performing sectors during economic slowdowns and recessions. Is this always the case? What does the current valuation tell us about the expected performance of REITs should a recession happen overnight? Are REITs in better or worse shape than they were in the past? Is a recession really imminent? Stay tuned for an answer on all these questions and the implications for your REIT portfolio.
Past recession performance
As we said, research shows that real estate performed badly during past recessions.
Exhibit