Investing in real estate investment trusts, or REITs, can help you gain exposure to the real estate sector at a low cost. Through REITs, you invest in companies that own and operate a portfolio of cash-generating real estate properties.
Typically, REITs use debt to fund their expansion plans while paying shareholders a tasty dividend. Interest rate hikes since the start of 2022 have driven REIT valuations lower, as investors are worried about the rising cost of debt. Plus, higher bond yields have made dividend stocks less appealing to investors.
