IYR Stock Recent News

REITs averaged a -7.14% total return in September and have fallen into the red year to date. Small cap REITs (-6.51%) outperformed yet again in September. Micro caps (-10.45%) continue to severely underperform their larger REIT peers. Only 9.74% of REIT securities had a positive total return in September with 34.38% in the black year to date.

Why Warren Buffett And Charlie Munger Don't Like REITs But You Should

Amidst the bearish sentiment towards real estate, a compelling opportunity to own REITs has emerged. The deeply discounted REIT market has largely priced in the challenges for real estate of higher rates and tighter credit markets. Areas of concern for real estate - office properties or too much leverage - are well-contained in public REIT markets. REITs generally possess high-quality balance sheets and have minimal exposure to traditional office space.

iShares U.S. Real Estate ETF (IYR) offers exposure to REITs at a historically cheap valuation while still in a bear market. REITs have not participated in the recent market rally, indicating a different outlook on the economy compared to other sectors. Lack of dividend growth is concerning and investors should only allocate a small percentage of their total portfolio into IYR and REITs in general.

I hold a significant allocation towards quality REITs. In this article, I share my bullish thesis for investing in the sector. I also highlight catalysts that could take quality REITs to new all-time highs in as little as 12 months.

The consumer price index rose 3.2% year over year in July, falling shy of 3.3% forecast.

The Consumer Price Index rose 3% year over year, marking the lowest rate since early 2021, and 0.2% over the last month.

BTIG's Jonathan Krinsky joins 'Closing Bell' to discuss investor sentiment in REITs, apartment REITs improving as the rental market grows, and investment strategies for a bifurcated real estate market.

IYR has been a disappointment in terms of its stock price. Total return during the past five years stood at 3.37 percent, which is almost equal to its yield. It seems that IYR's value investments in industrial REITs and specialized REITs are only good enough to generate a decent yield, nothing more than that. During the short run, residential REITs and Retail REITs likely will have a tough time due to interest rate hikes, high unemployment, and economic uncertainty.

Easing inflation indicates that the economy is stabilizing and interest rates may be declining. In such an environment, some sectors tend to perform better than others.