REIT prices are falling rapidly and much of the decline is hidden by market cap weighted indices.
There is now a valuation rift between small and large REITs.
We see value in buying small REITs with low P/FFO multiples.
REIT indices are no longer representative of REITs. This article will detail the disparity and discuss how to take advantage of it with a pair trade shorting the Vanguard REIT Index (VNQ).