REITs are a great way to mitigate risk during periods of rising inflation.
The S&P 500 index has dropped a whopping 13% so far this year, but the S&P 500 Real Estate sector is only down 3%. In periods of corrections, investors look toward assets with a margin of safety
, which often manifests in the form of solid cash flow and conservative leverage.
“REITs can benefit from price increases for rents and from higher real estate values during hotter inflationary periods.” wrote Sam Stovall
, chief equity strategist at CFRA Research. Investors see inflation everyday when they’re at the market, the gas pump, or buying a car. Holding onto real assets helps mitigate these detrimental effects whenever inflationary bouts occur.
Mr. Karsh is a Partner and Co-Founder of Streitwise. His primary responsibilities include sourcing and executing new investments, managing corporate operations, and overseeing investor relations and reporting.
Prior to forming Streitwise, Mr. Karsh was an Acquisitions Analyst for Canyon Capital Realty Advisors and the Canyon-Johnson Urban Funds, where he was responsible for underwriting, structuring and executing value-add and opportunistic transactions. He holds a Bachelor of Arts degree in Political Science from the University of Pennsylvania. Mr. Karsh is a member of ULI and is also a Real Estate & Construction member of the Jewish Federation of Greater Los Angeles.