As Thomas Bohjalian, CFA, Executive Vice President at Cohen & Steers reminds us, “rising rates don’t happen in a vacuum. But REITs are not bonds.”I hear it almost daily, “REITs are getting crushed because of rising rates”, but as Bohalian points out “in an improving economy, landlords can raise rents as tenants fight for more space, potentially increasing cash flows to offset the effects of higher rates.”In other words, “it should matter why rates are rising, not simply that rates are rising.” Rising Treasury yields have been historically positive for REITs when accompanied by a stronger economy, and the pullback represents an opportunity for dividend investors to take advantage of the opportunity by capitalizing on some REITs with high-paying dividends. 7 REITs Yielding Over 7%Jernigan Capital (JCAP) is a commercial real estate mortgage REIT that lends to private developers, owners and operators of self-storage facilities. Brixmor Property Group (BRX) is a shopping center REIT with a portfolio focused in grocery anchored tenants. However, in the absence of a recession, OUT is well positioned to perform and maintains an attractive 7.5% dividend yield.

Source: Forbes May 04, 2018 12:56 UTC