RBC predicts strong 2025 setup for Canadian REITs, flat to positive returns for U.S. REITs

From Investing.com: 2024-12-21 04:00:00

RBC Capital Markets predicts diverging paths for Canadian and U.S. REITs in 2025 due to valuation dynamics, monetary policy shifts, and sector-specific fundamentals. Canadian REITs underperformed in 2024 but are expected to have a stronger 2025 setup with attractive valuations and anticipated BoC easing. U.S. REITs face stretched valuations and headwinds, projected to deliver flat to slightly positive returns.

Canadian seniors housing has robust prospects with an average growth of 11% in SP NOI for retirement homes. Industrial REITs in Canada may benefit from mark-to-market opportunities, while U.S. healthcare REITs have a healthy operating environment. Net lease REITs in the U.S. are poised for acquisition volume growth tied to yield curve movements.

RBC’s global REIT basket includes picks like Dream Industrial REIT, Boardwalk REIT, and Chartwell Retirement Residences in Canada, and Gaming & Leisure Properties and Healthpeak Properties in the U.S. American Healthcare REIT Inc is highlighted for having the best growth prospects. Challenges are noted in Canadian office markets and U.S. manufactured housing.



Read more at Investing.com: Here is the 2025 global real estate outlook according to RBC By Investing.com