Three large to massive tailwinds for reits and Artis
At the risk of sounding like the master of the obvious, we find ourselves amidst the aligning of the stars and the moon here with regards to the current situation reits (perhaps in particular Artis) find themselves in. Firstly, we are underway with a cutting cycle. Not only that but we are in the infancy stages of this cycle. Secondly, although there remains still a significant amount, the oversized debt wall this sector faces, it is and will be chipped away at. The further progress we make without castastrophy, the greater the improvement in sentiment and investor enthusiasm we get. Once we see light at the end of this tunnel, I believe this gives us the last good woosh upwards to revisit some highs of yesteryear. Thirdly, as you are just beginning to see, sideline and Money Market and equivalents are starting to look for a new home. Like the rate cutting cycle, this too is in its infancy, and theres lots and lots of this cash about to get set free.
With regards to an earlier post here of my call near the Artis low, it's hardly worth mentioning as I am no one special nor was the call anything special. There are far smarter people on this board whom also shared the same thoughts and likely the same timing, Frankie and Este come to mind, not to short change anyone else.
The trader in me is starting to speculate and looking to reinvest potential profits, then I get a slap upside the head from the sensible side of me that says hey dumb as**s, you're invested in quality yeilding 8-10 percent, in a beaten down sector that is just starting to make its move, where you think you are going to from here? I then realize, we are in the best seat in the house right now, que Frankie and the popcorn machine, baby we just getting started!
Stay good,
DZ