REITs vs. Treasuries: What is The Best Investment in 2023?

Treasuries have become popular investments in 2023. Short term treasury yields are now above 5%, which is even higher than the dividend yield of REITs. Even Realty Income (O), Vonovia (O), and Alexandria Real Estate (ARE) yield just 4-5% today. If such Real Estate Investment Trust investments offer such low yields, why wouldn't you buy the higher yielding treasuries instead? REITs are a lot riskier and we could be facing another crash in the coming year. Even then, I believe that REITs are much better investments than Treasuries or other bonds, and in this video, I explain why. 🏠Feel free to take a 2-week free trial to my REIT newsletter to access my entire portfolio: https://seekingalpha.com/checkout?service_id=mp_1268

REITs are real estate investments that are often publicly listed. They are today a lot more attractive than Treasuries because of two main reasons:
(1) Inflation: REITs are not just reliant on their yield to generate returns. They are also growing their cash flow and the recent inflation has resulted in rapid rent growth. The impact of rising interest rates is often not significant because REITs typically use little leverage.
(2) Growth and Upside: After seeing their share prices crash to historically low levels, REITs are today deeply undervalued and offer significant upside potential in a future recovery. Therefore, now is a good time to buy REITs in my opinion and I often discuss my top REIT investment opportunities on this channel. They are some of my favorite dividend stocks for 2023 and I own many REITs in my dividend portfolio to earn growing dividend income.

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Image sources: Tricon, WSR, NAREIT, YCHARTS, EPRA, Canva

Important Disclaimer: Leonberg Capital holds positions in O; VNA and ARE. This video is impersonal and does not provide individualized advice or recommendations for any specific person. Viewers/readers should not make any investment decision without conducting their own due diligence and consulting their financial advisor about their specific situation. This video is for entertainment purposes only and you are responsible for your own investment decisions. The information is obtained from sources believed to be reliable, but its accuracy cannot be guaranteed. The opinions expressed are those of the publisher and are subject to change without notice. This YouTube channel is managed by Leonberg Research OÜ, a subsidiary of Leonberg Capital OÜ.

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