TheStreet's Jim Cramer says REITS have been among the better performers in the stock market due to a scarcity of new construction. Cramer says that's why REITS like Tanger (SKT) , Kimco Realty (KIM) Simon Property Group (SPG) , and Federal Realty (FRT) have been able to power higher even as retailers are filing for bankruptcy. Cramer said he really likes Federal Realty, but he also pointed out healthcare related REITS like HCP (HCP) and Ventas (VTR) are also doing well. But Cramer cautions the group has had a good run and valuations are high.
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The safe route is to buy shares, collect the generous dividends and reap the rewards when valuations revert back to normal.
Buyers of the shares are becoming more aggressive.
These real estate investment trusts offer yields that are well over double that of the broader market, long dividend increase streaks, and favorable growth and dividend outlooks.