The broader REIT sector appears overbought; it is time to start rotating from large cap REITs into select small/mid cap REITs that have lagged the rally

Tim Hannon

Newgate Capital Partners

The broader REIT sector appears overbought; it is time to start rotating from large cap REITs into select small/mid cap REITs that have lagged the rally. The REIT sector is up a staggering 21.5% since the beginning of the year, while some small mid cap REITs have not moved. Case in point is small cap REIT Industria (IDR). IDR is a plain vanilla REIT that owns 18 industrial assets across Australia. IDR is still trading at is recent issue price of $2.00 and is yielding a healthy 8.4%, a massive premium to the sector yield of 5.2%. Disclosure: Freehold Funds own IDR.


Tim Hannon
Principal
Newgate Capital Partners

Tim has 22 years’ experience in the investment and securities markets. Tim was a partner of Goldman Sachs JBWere and during his 15-year tenure at the firm had senior experience across all areas of equities investing. Tim was Head of Australian...

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