- On one hand, REITs offer higher dividend yields, inflation protection, real estate diversification.
- On the other, REITs are highly leveraged and consequently have more downside when economic circumstances turn.
- Don’t get tempted by the higher dividend yields of the general REIT market now, security selection is the only option for profitable longer term REIT investments.
As we promised in our farmland article, today we are going to talk about Real Estate Investment Trusts (REITs). We are going to discuss what REITs are, what benefits they offer, what risks there are with them and what the current market perception for them is, whether overvalued or undervalued. More →