I'm going to answer this from the point of view of retail reits although there are many other types of reits (apartment, data center, cell tower).Ferny111 wrote: ↑ Long time reader of this thread.
Curious what everyone's thoughts/feelings are on REITs at the moment. They've taken quite a tumble, often not rebounding to the same degree alongside the market. For example, REI.UN has been struggling to maintain a stock price above $16.50. The company is still making its .12c/share dividend declaration each month. I've been purchasing a lot here and there as my exposure to the sector was nonexistent prior March (aside from a single rental income property).
I think retail reits are pretty under valued. There is a big discount to the Nav which should make the higher end reits a good investment as they own valuable real estate. Outdoor malls seem better than enclosed. I think it probably makes sense to pick the bigger/higher quality names.
There is risk though and I'm thinking covid will accelerate the trend towards people shopping online. Rei when I looked it in Fastgraphs had a payout of over 100%. I wouldn't be surprised to see more dividend cuts. Over time the reits should trade near their nav.
I own sru and crt but I'm probably going to keep my exposure to retail reits small.