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Moreover, a stronger economy could also support profitability and yield of REITs. An improving economy could provide greater opportunity for income generation from each property within REITs as properties are more likely to appreciate due to greater demand. Furthermore, rising employment drives higher occupancy rates, which translates to greater rents and greater profitability or higher payouts for investors.
The $754.36 million USRT allocates almost 21% of its combined weight to office and industrial REITs.
For more investment strategies, visit the Rising Rates Channel.