Timber REITs own and operate timberlands to generate revenues. And with the consistent rise in housing and lumber prices of late, timber REITs are expected to achieve stable growth in the near term.
Because demand for residential and commercial spaces is robust, the timber REITs’ sector is poised to outperform the broader market despite an apparent supply crunch. This optimistic investor sentiment is evidenced by the iShares Global Timber & Forestry ETF’s (WOOD) 4.6% returns in the past three months. Furthermore, given surging market volatility currently, due to record high inflation and supply chain disruptions, REITs are wise bets because they pay dividends.
