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The Time To Buy REITs Is Right Now

Jun. 13, 2020 9:00 AM ETAEO, SKT, SPG, SPG.PJ, SRC, SRC.PA, VNQ220 Comments


  • A lot of investors claim that it's too late to buy the REIT recovery.
  • In reality, prices remain very attractive even after the recent rally.
  • As we reopen the economy, rent collection rates will quickly recover and yield-starved investors will rush back to the REIT market. We are still buying.
  • Looking for a portfolio of ideas like this one? Members of High Yield Landlord get exclusive access to our model portfolio. Get started today »

We have all learned from the past that it's very profitable to buy REITs after market crashes. They always have fully recovered, 100% of the time. As long as you have a diversified portfolio of well-selected REITs, you are likely to earn very rich returns in the long run.

Yet, when the crash really happens, very few have the courage to buy more and many end up even selling at the worst possible time.

At the lowest point in March, the Vanguard Real Estate ETF (VNQ) was down by an 43%. Investors were rushing out of the market and sentiment was extremely negative:


Fast forward by just two months, and REITs are up by 50% and half of the losses have already been erased.


Investors were not buying in March due to due to fears of dropping prices. Today, the same investors are still stubbornly waiting for the lower prices.

They were wrong to not buy in March. And they are wrong again today.

The time to buy REITs is right now. Here are five reasons why:

Reason #1: You Cannot Time the Market

Those who missed out on REITs in March also missed out in April, in May, and probably continue to miss out today. They did not get in at the lowest point, and since then, they have been waiting for these prices to return.

That implies that you are able to time the market. But just like you failed to time the market in March, April and May, you will probably fail again.

As Ray Dalio explains in a recent interview, timing the market is more difficult than winning a gold medal in the Olympics.

A lot of investors are sitting on sidelines with their cash on hand waiting for REITs to drop back. Unfortunately, you might be waiting

Historic Market Opportunity! Act Now!

The recent market crash has created exceptional opportunities. Many high-quality REITs are now offered at >10% sustainable dividend yields and have 100-200% upside potential in a recovery.

At High Yield Landlord, we are loading up on these discounted opportunities and share all our Top Ideas with our 1,800 members in real-time.

Start your 2-Week Free Trial today and get instant access to all our Top Picks, 3 Model Portfolios, Course to REIT investing, Tracking tools, and much more.

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This article was written by

Jussi Askola profile picture
Become a “Passive Landlord” with our 8% Yielding Real Estate Portfolio.

Jussi Askola is a former private equity real estate investor with experience working for a +$250 million investment firm in Dallas, Texas; and performing property acquisition in Germany. Today, he is the author of "High Yield Landlord” - the #1 ranked real estate service on Seeking Alpha. Join us for a 2-week free trial and get access to all my highest conviction investment ideas. Click here to learn more! 

Jussi is also the President of Leonberg Capital - a value-oriented investment boutique specializing in mispriced real estate securities often trading at high discounts to NAV and excessive yields. In addition to having passed all CFA exams, Jussi holds a BSc in Real Estate Finance from University Nürtingen-Geislingen (Germany) and a BSc in Property Management from University of South Wales (UK). He has authored award-winning academic papers on REIT investing, been featured on numerous financial media outlets, has over 50,000 followers on SeekingAlpha, and built relationships with many top REIT executives.

DISCLAIMER: Jussi Askola is not a Registered Investment Advisor or Financial Planner. The information in his articles and his comments on SeekingAlpha.com or elsewhere is provided for information purposes only. Do your own research or seek the advice of a qualified professional. You are responsible for your own investment decisions. High Yield Landlord is managed by Leonberg Capital.

Analyst’s Disclosure: I am/we are long SRC; SPG. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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