Reported about 1 year ago
Real estate prices have been continuously rising in recent years, but income-generating financial products related to real estate have underperformed. However, REITs are currently undervalued due to previous interest rate pressures, with expectations of increased buying momentum in the second half of the year as interest rates are predicted to decrease. Analysts estimate a 3.2% profit growth for US REITs in 2024, with healthcare, industrial, and data centers leading in growth. The REITs index is currently at a discount of around 3%, with a P/E ratio of 17 times, making the valuation highly attractive amidst a backdrop of global central bank interest rate cuts and improved market attractiveness due to lower borrowing costs. With the estimated P/E ratio of the REITs index still below the long-term average and the valuation considered cheap, REITs present a strong investment value proposition for investors.
Source: YAHOO