Real Estate: Few Cheap Stocks
Sector is one of the most fairly valued.
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 shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.