Investors Rush to REITs
  • 9 months ago
Big fund managers specializing in distressed investing are showing a growing interest in commercial real estate and investment trusts, purchasing shares of struggling REITs previously dominated by individual investors. While this has led to higher prices and benefits for existing shareholders, it has also sparked conflicts as hedge funds vie for shares and clash with the REITs' management teams. The commercial real estate market has faced a downturn which has led distressed investors to turn to REITs. REITs invest in properties or lend money to real estate investors, distributing most of their rental or mortgage income as stock dividends. They have been popular among individual investors as a defense against inflation. The market capitalization of REITs has decreased by approximately $200 billion over the past two years, leading to outflows from the funds.