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Quarter-End Insights

Real Estate: Strong Performance as Investors Seek Income Amid Falling Rates

Opportunities in real estate live in the mall and hotel REITs.

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The Morningstar U.S. Real Estate Index is up 25% year to date as of Sept. 24 (Exhibit 1). Real estate was among the best performing sectors in the third quarter as growing economic concerns have led to declines in interest rates, which have made 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

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