REIT stocks face renewed interest amid falling Treasury yields

Real Estate Investment Trusts (REITs) are seeing renewed interest as falling long-term Treasury yields may ease borrowing costs and improve the attractiveness of their high-yield dividends. Analysts note that while REITs are sensitive to interest rates, recent liquidity support buyback operations by the U.S. Treasury Department have contributed to retreating yields.

Specific companies are being highlighted for different investment reasons. Realty Income is noted as a bellwether for rate-sensitive REITs, having recently amended a $500 million term loan to manage liquidity. Chimera Investment Corporation is seeing a rating upgrade to ‘Buy’ for its CIM-C preferred stock due to its yield premium and low likelihood of being called.

Additionally, Gaming and Leisure Properties has been upgraded to a ‘Strong Buy’ following strong Q2 results and raised guidance, with analysts suggesting the stock is trading at a deep discount relative to its intrinsic value.