4 Categories Where REITs May Outperform This Year

Rick Romano

MADISON, NJ—Even with political uncertainty in Europe, the potential for U.S. monetary policy missteps and threats of an escalation in the trade war, PGIM’s Rick Romano anticipates 2019 will be a favorable year for the U.S. REIT market.

According to Romano, industrial, manufactured housing and cold storage sectors are poised to outperform expectations in 2019. Each of these sectors should see REITs leading cash flow growth and they will even have the opportunity for upward earnings revisions during the year.

INDUSTRIAL

The industrial sector continues to benefit from e-commerce-driven demand particularly in the last mile of distribution. Additionally, institutional capital continues to be focused on industrial which should prevent cap rates from expanding.