265. An introduction to REITs: challenges and opportunities

The advantage of investing in a pooled fund of Real Estate Investment Trusts (REITs) is that investors don't need extensive knowledge about the underlying assets. Active managers such as Rogier Quirijns, co-manager of the Cohen & Steers European Real Estate Securities fund, handle the selection of properties and the broadening sectors within real estate, such as office spaces, retail, data centres, and self-storage, on your behalf. Rogier discusses the negative impact of inflation overshooting and the subsequent increase in interest rates, which primarily affected the listed real estate market. However, he also mentions that inflation can be a benefit by increasing rental income. He then turns to the defensive nature of the sector when discussing recession. We finish with the opportunities for investing in undervalued assets, such as German residential properties.What’s covered in this episode: What is a REIT? What are the advantages of REITs? How the sector has broadened out into new sub-sectorsWhat caused the challenging period of real estate assets in 2022How inflation can benefit real estateThe defensive characteristics of real estatePotential catalysts for the asset classThe strong pricing power in self-storage Opportunities in German residential propertiesThe impact of higher interest rates on mortgagesMore about this fund: This fund employs a proven and reliable approach that enables its well-resourced team to navigate the market, aiming to provide consistent returns that surpass the overall market performance. The European real estate market is influenced by a multitude of factors, but the expertise and resources of Rogier and the team empower them to analyse all available information and construct a risk-conscious portfolio.Learn more on fundcalibre.comPlease remember, we’ve been discussing individual companies to bring investing to life for you. It’s not a recommendation to buy or sell. The fund may or may not still hold these companies at the time of listening. Elite Ratings are based on FundCalibre’s research methodology and are the opinion of FundCalibre’s research team only.Learn more on fundcalibre.comPlease remember, we’ve been discussing individual companies to bring investing to life for you. It’s not a recommendation to buy or sell. The fund may or may not still hold these companies at the time of listening. Elite Ratings are based on FundCalibre’s research methodology and are the opinion of FundCalibre’s research team only.