Real Estate: For the Strong Stomached, Commercial Real Estate Looking More Attractive
After the recent market sell-off, the real estate sector looks more reasonably valued.
Over the course of 2015, Morningstar's real estate sector coverage has moved from one we viewed as largely overvalued to one that looks more reasonably priced. The sector trades at a 10% or so aggregate discount to our estimates of value, roughly in line with the discount associated with our overall coverage universe. Investors should continue to be selective in the space, however, as plenty of real estate firms continue to trade above our estimates of value.
Todd Lukasik does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.