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Quarter-End Insights

Real Estate: Few Cheap Stocks

Sector is one of the most fairly valued.

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The Morningstar U.S. Real Estate Index rose 18% year to date (Exhibit 1) and is outperforming the broader U.S. equity market (17%), as growing economic concerns have led to declines in interest rates, which make the defensive nature of long-term leases with tenants and the high dividend payouts of REITs more attractive to investors.

Real estate is up and has outperformed the U.S. Equity Index - source: Morningstar Analysts

Kevin Brown does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.