INDIANAPOLIS, Aug. 6, 2021 /PRNewswire/ — In a recent article for CNBC, Sheaff Brock Managing Director Dave Gilreath and Senior Portfolio Manager JR Humphreys note that real estate investment trusts have been experiencing significant growth this year post-pandemic.
Gilreath and Humphreys, who manage the Sheaff Brock Real Estate Income & Growth portfolio strategy, observe that REIT growth is being driven in part by investor concerns about inflation and the possibility of rising interest rates. The impact of those factors, plus ongoing economic recovery, has driven the S&P U.S. REIT Index up 27.9% from January 1 through July 27, 2021.
Share prices for REITs in almost all categories are up, even though some groups such as hotels and offices may be in preliminary stages of a comeback with room to grow. Percentage increases for REIT categories year-to-date for 2021 are: retail up 35.9%, apartments up 37.7%, healthcare up 24.6%, office buildings up 16.9%, and hotels/resorts up 17%.
This growth, along with REIT tax laws requiring 90% of profits be paid to shareholders as dividends, leads Gilreath and Humphreys to conclude that REITs remain an attractive alternative to bonds in today’s low-yield bond market. And, if continued inflation drives up interest rates and lowers stock valuations, REITs may also be an investment alternative to help diversify equity portfolios.
About Sheaff Brock:
Sheaff Brock is an SEC-registered, fee-only independent investment firm striving to enhance portfolios of growth- and income-oriented investors, managing $1.3 billion in assets nationwide as of 6/30/2021. Sheaff Brock principal David Gilreath contributes investment commentary to CNBC.com, Medical Economics, HCPLive,® and Financial Advisor magazine. Visit Sheaff Brock YouTube for information.
Sheaff Brock Investment Advisors, LLC («SBIA») is an SEC-registered investment advisor founded in 2001. Clients or prospective clients are directed to SBIA’s Form ADV Part 2A prior to deciding to participate in any portfolio or making any investment decision. The views and opinions in the preceding commentary are subject to change without notice and are as of the date of the report. There is no guarantee that any market forecast set forth in the commentary will be realized. This material represents an assessment of the market environment at a specific point in time, should not be relied upon as investment advice, and is not intended to predict or depict performance of any investment.
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SOURCE Sheaff Brock Investment Advisors