Real estate investment trusts (REITs) suffer from one key myth: When rates rises, REITs lose.
Part of that logic — and short-term self-fulfilling prophecy — is that cash is the lifeblood of REITs and when rates rise the cost of borrowing for REITs is higher, so their margins are squeezed.
But that leaves out one key piece of information out of the equation. If rates are rising, the economy is growing. And over time, REITs do very well in an expanding economy because it is easier for them to raise rates or capture tenants willing to pay higher rents on their properties.
And this theory proves itself out time and again.
Considering most economic indicators, it looks like the U.S. is starting that expansion once again. And that means it’s a good time get some REITs in your portfolio. Below I have picked the seven best REITs to buy now. They represent strong buys because of their business sector, region or both.