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Why are real estate investment trusts doing so well in this slowing economy?


the fed just paused because the economy is slowing and there is talk of a recession. job growth is slowing, consumer spending is decreasing, consumer confidence is also going lower. housing market has already taken a big hit.
with all of this i would assume atleast the retail reit's would suffer, but they seem to be doing well still...

because it's just a slowdown in growth..

I.e. it was growing at 5%, now it's "only" growing at 3%

business is growing, residential real estate sales are slowing. reits are usually commercial and when more stores are opening up things are great. they are also interest rate sensitive because of loans.

Based on what I read/heard, REIT's and REIT mutual funds invest primariy in income producing properties, as the home owners are foreclosing and new people are not buying enough homes, rental properties are picking up and rent is also going up. That is why FED is worried inflation will pick up (that is a different topic anyway!). Hence REIT's are doing well.

Reits cover various areas. Best 1s now are health care-related - own medical buildings & the like. SNH is 1. Office building Reits a bit more speculative now. Apartment Reits look solid. A close-end investment company that invests in Reits & sells at a big discount is RRE.

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