ADAMO

We're at the halfway point of another surprisingly strong REIT earnings season, with property fundamentals continuing to improve despite a materially tougher interest rate and capital market backdrop. Among 52 equity REITs providing full-year FFO guidance, 44 raised their outlooks (85%), six maintained guidance, and just two lowered (4%) their FFO outlook. REITs have significantly outperformed during earnings season, with the Equity REIT Index gaining nearly 4% during this stretch versus a -3% decline for the S&P 500.

We take a look at this income market sell-off and review some of the key strategies investors can use to take the most advantage of it. Relying on static buy-under targets is ineffective and potentially dangerous during both systemic and idiosyncratic drawdowns. Effective risk management requires scenario analysis, diversification, and an 'All Weather' allocation approach rather than single-outcome bets.