income builder 2021 24420.png
apartment REITs
homebuilders ETFs
single family rental REITs
manufactured housing REITs
student housing REITs
data center REITs
Cell tower REITs
net lease REITs
industrial REITs
storage REITs
office REITs
mall REITs
hotel REITs
Timber REITs
healthcare REITs
Billboard REITs
shopping center REIT
Casino REITs
cannabis REITs
farmland REIT investing
mortgage REITs
1/1

Explore our Real Estate Indexes

The Easy Way To Invest in Real Estate

RIET Hoya Capital High Dividend Yield ETF.png
HOMZ_Logo_Just Ticker.png
ETF express.png
  • Alex Pettee, CFA

Net Lease REITs: Analyzing Inflation Risk

  • Despite a wave of dividend hikes and robust external growth, net lease REITs have been among the weakest-performing property sectors this year amid concerns over soaring inflation and rising interest rates.

  • Despite their reputation as bond substitutes, net lease REITs have historically delivered above-average earnings growth as accretive external growth has more than offset the drag from muted property-level growth.

  • Thriving in the "lower for longer" macroeconomic environment that defined the 2010s, the new regime of higher inflation rates has raised questions about these REITs' ability to continue to outperform.

  • We’ve developed additional metrics to measure the inflation-hedging characteristics and potential risks. Since net lease REITs are among the more bond-like sectors, the need for diversification becomes especially important.

  • Net lease REITs are currently firing on all cylinders, taking full advantage of cheap capital to fuel a "buying spree" of property acquisitions. We see recent underperformance as a buying opportunity, particularly for net lease REITs that provide better inflation protection.

Click Here To Read The Full Report on Seeking Alpha!