U.S. Markets open in 4 hrs 12 mins

Real Estate: Few Cheap Stocks

Kevin Brown (kevin.brown@morningstar.com)

The Morningstar U.S. Real Estate Index rose 18% year to date (Exhibit 1) and is outperforming the broader U.S. equity market (17%), as growing economic concerns have led to declines in interest rates, which make the defensive nature of long-term leases with tenants and the high dividend payouts of REITs more attractive to investors.