- The small-cap REIT market is one of the only segments that still remains near its 52-week low.
- While many investors are attracted to its double-digit dividend yields, declining long-term profitability may mean those dividends are reduced over the coming months.
- The fact is that REITs are distressed due to rising tenant delinquencies, rising interest rates, negative political pressure/support, and businesses shifting toward work-from-home.
- Given the situation, it seems likely that many REITs will see their property valuations decline due to a very expensive market and negative economic fundamentals.
- KBWY's yield may look attractive, but the "recovery" may already be over.
For further details see:
KBWY: Value Trap As REITs Face Permanent Structural Changes