Future of REITs

[Z3Dreamer]

Have a tiny bit in my portfolio. Have been seeing lots of bad news about malls. One the other hand, I have heard about the growing need for rental apartments. Biggest issue is that Amazon is taking over the world and eliminating the need for bricks and mortar stores.

Should I dump my no load, low fee REIT which was up 16% last year?

 

[bingybear]

While I feel your recent pain with REITs, I think you are looking only at part of the picture. I believe some REITs are involved in Long Term Care facilities, Data Centers (Digital Reality Trust) and other areas of the economy.

Maybe need to look more deeply into what is causing the lower performance or selecting REITs more carefully.

 

[target2019]

If the bit is tiny, a 50% drop won't matter much. If it is an index, I wouldn't fret, as it will come back. If it is something else, we have no idea what is in it.

 

[RetiredGypsy]

Amazon, like Walmart, aren't eliminating the need for any other kind of store. And people aren't going to stop paying for renting rooms or buildings anytime ever. Malls aren't the benchmark to judge the well-being of a REIT index.

VGSLX and VGSIX aren't doing so hot right now but so what? Short-term is short-sighted.

 

[Looking4Ward]

I've got a little less than 2% of my portfolio in VGSLX but I consider it part of my intermediate to long term "bucket" that can sit undisturbed for at least 14 more years. I fully expect it to be worth much more by that time.

 

[jazz4cash]

I thought REIT was more of a dividend play.

 

[audreyh1]

Have a tiny bit in my portfolio. Have been seeing lots of bad news about malls. One the other hand, I have heard about the growing need for rental apartments. Biggest issue is that Amazon is taking over the world and eliminating the need for bricks and mortar stores.

Should I dump my no load, low fee REIT which was up 16% last year?

REITs are a great diversifier in combination with the other equity funds in a portfolio. Mine often zigs when the others zag, so I just rebalance.

 

[foxfirev5]

I know that when you look at the REIT index Simon (Malls) is the biggest holding. While no fan of malls I've also noticed that Simon is adapting rather well. In addition, look at the whole picture and the index is a rather low cost approach to diversification.

 

[LOL!]

Amazon needs to rent/buy warehouses to serve as distribution centers. They need places to park all their delivery vehicles. Will they buy airplanes like Fedex has?

 

[coveredbridge]

I allocate about 5% of my portfolio to REITs, most in VGSLX, for diversification. When it seems cheap relative to other asset classes, like now, I buy a little more. I think the biggest threat to REITs in the short term is not the future of malls, but the growing expectations for rising long-term interest rates. I'm not convinced that a significant rise in long term rates is imminent, so I'm maintaining my allocation.

 

[bingybear]

I allocate about 5% of my portfolio to REITs, most in VGSLX, for diversification. When it seems cheap relative to other asset classes, like now, I buy a little more. I think the biggest threat to REITs in the short term is not the future of malls, but the growing expectations for rising long-term interest rates. I'm not convinced that a significant rise in long term rates is imminent, so I'm maintaining my allocation.

I've found it really takes some work to try to keep everything in proportion. VTI has about 3.9% in REITS, VXUS notes about 3% in Real estate, but does not mention REITs from what I see.

Right now I only have a bit over 1% directly in REIT in an ETF focused on REITs. But I'm sure I have other in other ETFs.

I'm not as disciplined as many here.

 

[RetiredGypsy]

2%

5%

1% directly in REIT

I'll up the ante with 10% in REIT.

 

[bingybear]

I've been heavy EM recently

 

[mathjak107]

based on what i see in nyc there are commercial store fronts available in the

most prime locations today. previously you would be hard pressed to find a

thing so i believe that these small business's that are not restaurants or

something people need to do on site the odds are slim they will survive .