Everyone Is Avoiding These REITs, That Is The Opportunity
Even the REIT segments that investors most dislike could present the greatest upside, according to Jussi Askola, CFA, who leads an investing group. The market’s avoidance of certain real‑estate investment trusts has driven their prices down to levels that may soon attract bargain‑hunters.
These trusts have endured a multi‑year bear market, leaving their valuations at historically low points. Prices now reflect deep discounts relative to net asset values and are measured by unusually low cash‑flow multiples. The combination of prolonged weakness and compressed pricing has created a rare environment for potential gains.
European Reit Discounts
European REITs are currently quoted at markedly deep NAV discounts, a situation that stands out in the broader market. The steep price gaps suggest that investors are demanding a sizable risk premium for exposure to these assets, even as the underlying properties remain solid. Such pricing anomalies often signal an opportunity for those willing to assume the associated risks.
Life Science Towers
Life‑science and tower REITs have also been hit hard, but analysts anticipate a possible rebound as sentiment improves. The sectors have suffered from the same prolonged downturn, yet their specialized asset bases could help them recover faster once investors regain confidence in niche real‑estate categories.
Members of High Yield Landlord receive exclusive entry to the real‑world portfolio, with a link provided to view the full list of holdings. This access gives subscribers a concrete view of the positions that the analyst believes are undervalued.
Analyst Disclosure
Askola discloses that he holds a beneficial long position in the shares of SHUR, CCI, VNA, SBAC and ARE, whether through direct ownership, options or other derivatives. He states that the commentary reflects his own opinions and that he receives no compensation beyond the platform’s standard arrangements. He also confirms that he has no business relationship with any of the companies mentioned.
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Source: seekingalpha.com · 2026-09-13