
REITs have been under pressure lately as the industry continues to suffer from rising interest rates, increasing the cost of debt and making it difficult for REITs to raise new capital. Given the real estate industry’s bleak outlook, it could be wise to avoid fundamentally weak REITs, Digital Realty Trust, Inc. (DLR) and Alexandria Real Estate Equities, Inc. (ARE).
Before delving deep into the fundamentals of these REITs, let’s first take a closer look at the industry.