S&P Capital IQ says rising interest rates will disrupt the real estate investment trust sector in 2017, but there will be winners and losers. Ken Leon, an equity analyst with CFRA, says industrial REITs are best positioned with strong secular growth, and he also likes mulitfamily and retail REITs. Winners among the better-performing REITs could be American Campus Communities (ACC) , Simon Property (SPG) , Prologis (PLD) and General Growth Properties (GGP) . He's less enthusiastic about real estate operating companies and hotel REITs, including CBRE (CBG) , LaSalle Hotel Properties (LHO) , Host Hotels & Resorts (HST) and Forest City Realty Trust (FCE.A) .
More from REITs
If interest rates go lower, that will likely jump-start investor demand for quality dividend companies -- looking to these real estate investment trusts is a good bet.
Let's check out the charts and indicators so it doesn't feel like we are rolling the dice with just the fundamentals.
An industry-wide rout of real estate investment trusts has brought ultra-high quality Simon Property Group back into extremely undervalued territory.
The operator of upscale hotels is the only lodging REIT in the S&P 500 Index and is trading at a below-average multiple.