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) .
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The major growth catalyst for this REIT moving forward can be put simply: the aging population.
Value-oriented players should start flocking back into SIG once it shows even the first hint of positive news.
Share prices that drop by much more than justified create great buying opportunities.
Investors can reap a nice monthly income stream through STAG Industrial, which owns tens of millions of square feet of warehouses, distribution centers and light manufacturing facilities.