Episode 379: REIT Fundamentals Remain Strong Ahead of Third Quarter Earnings
David Auerbach, REIT industry expert and the chief investment officer of Hoya Capital & Hoya ETFs, was a guest on the latest episode of Nareit\u2019s REIT Report podcast.
Auerbach said fundamentals for REITs have remained \u201cvery strong,\u201d despite the Federal Reserve\u2019s tighter monetary policy. \u201cIf you look at the last quarter, public REITs reported same store property level income about 10% above where they were pre-pandemic. Many of these REITs have been preparing for winter for a long period of time, cleaning up their balance sheets, focusing less on variable rate debt.\u201d
He added that investors want management teams to do four things\u2014grow revenues, grow profits, grow guidance, and grow dividends. \u201cPretty much by and large, that's been what's happening across the spectrum in the REIT industry.\u201d