Owners of real estate and real estate investment trusts (REITs) may want to take their Dramamine. There is a good chance they are feeling quite seasick these days. It’s no secret that REITs were hit hard by the Federal Reserve’s tightening schemes. But then, it seemed the sector was on the up and up, surging past the broader market as many of the potential headwinds began to abate.
Lately, however, things are once again turning south for the sector.
Those former headwinds are back and new risks have entered the market. And with that, REITs are once again struggling. The question is: Are the struggles real and is this a chance to buy the sector with better fundamentals?