One of 2024's more significant stories, data center construction boomed amid a blockbuster year for AI. AI is not likely to go away anytime soon and with Federal deregulation of areas like crypto likely amid broader positive macro trends, data center construction could continue to grow.
Investors looking to position for a 2025 uptick in M&A activity have many sectors to choose from. Real estate, including REITs, is a credible contender to experience more consolidation activity next year.
Helped by the Federal Reserve's two recent interest rate cuts, totaling 75 basis points, REITs and the related exchange traded funds have found solid footing.They could be poised for more upside in 2025. Take the case of the actively managed ALPS Active REIT ETF (REIT) is higher by almost 2.
Real estate stocks and related ETFs recently got a much needed positive jolt when the Federal Reserve lowered interest rates in September. The sector's rate-sensitive status isn't going anywhere.
Expectations the Fed would cut interest rates in September supported gains for REITs and related ETFs. But publicly traded real estate assets endured some profit-taking following the Fed's first rate cut in four years.
Real estate stocks and the related ETFs are notoriously rate-sensitive assets. It's not surprising that the run up to and the delivery of the Federal Reserve's rate cuts were beneficial to the sector.
Rate cuts have come and gone and with that change, many investors may be reevaluating portfolios for the end of the year. In equities, big tech names still lead the way, while in fixed income, dropping rates could change the outlook.
Real estate stocks and related ETFs recently regained lost momentum. The ALPS Active REIT ETF (REIT) certainly merits a place in that conversation.
Likely helped by intensifying speculation that the Federal Reserve will lower interest rates this month, real estate investments (REITs) and related ETFs have been impressive performers of late. For example, the largest ETF in the category is up more than 5% over the past month.
One of the primary reasons investors tap real estate investment trusts (REITs) and the related ETFs is due to the above-average dividend yields typically found on these assets. That trait also makes real estate stocks rate-sensitive.
In anticipation of a September interest rate cut by the Federal Reserve, real estate equities and the related exchange traded funds have recently found some solid footing. Over the past month, the S&P Real Estate Select Sector Index is higher by 5%.
Experienced real estate investors know that one of the primary fundamental measures of strength is occupancy rate. Those market participants also know that owing to the depth of the real estate sector, occupancy rates aren't linear across the space.