Cohen & Steers’ Rich Hill Says Timing is Right for Building Exposure to REITs
January 26, 2023 | Sarah Borchersen-Keto | Nareit
REITs have historically made solid returns following the onset of a recession, particularly in the early stages of the cycle, making this an ideal time for investors to begin building an exposure to the asset class, says Rich Hill, head of real estate strategy and research at Cohen & Steers.
Speaking on the Nareit REIT Report, Hill said REITs have historically produced average 12-month forward returns of more than 10% following the onset of a recession, with early-cycle returns exceeding 20%.
Hill said that commercial real estate fundamentals are on a solid footing, especially for REITs. “We do expect deceleration in growth as the broader economy slows, but our expectation is for REIT fundamentals to perform better than what typically occurs during recessionary periods.”
