From Investing.com: 2025-01-17 16:17:10

Truist Securities predicts a 10% total return for real estate investment trusts in 2025, with expected funds from operations growth of 4.5% in 2025 and 6.3% in 2026. They upgraded CubeSmart, Elme Communities, Equity LifeStyle Properties, and Sun Communities to “Buy” but downgraded Sabra Health Care REIT and Plymouth Industrial REIT to “Hold.”

The firm is optimistic about data centers, retail, industrial, and gaming REITs, with EQIX, GLPI, and FRT as top picks. However, they remain cautious on self-storage and specific names like Extra Space Storage and Safehold.

Truist highlights a decline in new supply supporting rental rates and asset values, moderate inflation boosting property valuations, and opportunities for earnings growth in industrial, lodging, and triple-net REITs in 2025.

Despite positive outlook, Truist warns of interest rate risks, debt refinancing challenges, and potential headwinds from slowing GDP and employment growth. Policy changes under the incoming administration could also impact REITs unpredictably.



Read more at Investing.com: Truist’s REITS outlook for 2025, upgrades several stocks By Investing.com