While the backdrop warrants continued caution, performance among public real estate securities appears to show that investors may be focusing on macro risks to a degree that underappreciates a particularly compelling situation. But, REIT fundamentals remain resilient at a time when REITs should stand out due to their inflation-hedging characteristics and limited supply chain exposure. Not only do REITs offer traits that can serve investors well in current conditions, but they also represent opportunities that should be hard to ignore as visibility improves due to a historically notable disconnect between REIT prices and the private market value of the real estate they hold.
