Better things to come for global developed market REITs

We believe that developed market real estate investment trusts (DM REITs) are poised for a sustained period of positive performance. This is despite interest rates that are set to remain well above pre-pandemic norms.

What you will learn:

• We forecast a 5.9% annual return for DM REITs over 2024-2028 in US dollar terms, on a GDP-weighted basis for the eurozone, UK, and US.
• We stick with our near-term view that a soft economic landing and limited supply will sustain REIT income growth, and that underlying asset values will find a floor as monetary policy gradually eases, which should allow REIT prices to grow over the next six months.
• Although there is uncertainty stemming from the November presidential election, US REITs still look set to outperform over the medium term. The US has a broader and more favourable mix of property sectors in the index and better economic growth prospects.