BOSTON: Driving REITs higher is demand for yield, as many fixed-income instruments deliver negative returns once inflation has been considered. REITs are yielding about 3.2 per cent, compared to a 1.9 per cent dividend yield for stocks in the S&P 500.
“We know that the chase for yield is desperate. You get no money if you leave your money in the bank, no return,” said technical analyst Carter Worth.
Yet portfolio managers and others who oversee REIT portfolios say strong demand for healthcare assets and low interest rates still make the asset class extremely attractive. Flows into real estate-focused funds have been strong, with five consecutive weeks of inflows…