Pure Industrial Real Estate Trust T.AAR.UN

REIT rut ...

[emba33]

Hi Folks:

I originally went into REITS as a decent defensive investment in a potentially declining market.  Almost all of my REITS are down meaningfully this year -- and all of this with an interest rate reduction!  

I assume folks are pricing in future rate hikes (which are not likely to happen quickly --- and in Canada, maybe not even this year).  

Are REITS a bad idea at this point in the market ...?

  Emba33

[maypeters]

Hi Emba, depends on what the motivation for the investment is. some of the REITS are quite expensive on a AFFO basis. If you are interested in the income stream then do not worry about the price fluctuation too much. From what I have looked at, most good management teams at various REITS have taken the opportunity to lock in the rates on their mortgages for a higher duration period (longer term)