Buoyed by the Federal Reserve’s lower for longer stance on interest rates and investors’ seemingly unquenchable desire for income, real estate investment trusts (REITs) and the corresponding exchange traded funds are among this year’s most popular income-generating asset classes.
“Other measures underscored the sound underlying fundamentals of the listed Equity REIT sector. Same-Store Net Operating Income (SS NOI) rose 4.3 percent in the second quarter of 2016 over the second quarter of 2015. SS NOI, which measures NOI generated by properties held for one year or more to factor out the effects of property acquisitions, is generally considered to be a reliable indicator of the underlying earnings of REIT-owned properties,” according to NAREIT by way of Barron’s.
For more information on real estate investment trusts, visit our REITs category.
Vanguard REIT ETF