REIT bonds: opportunities after the storm

Within Insights we provide you with a deeper understanding of our investment philosophy and thinking.

REITs segments such as logistics and data centres on the rise

Bonds issued by real estate operators have had an eventful journey over the last two decades. The bursting of the real estate bubble was followed by the Global Financial Crisis in 2008, and the euro crisis in 2011. In the low-interest environment that followed, real estate companies issued increasingly high bond volumes. After a sell-off of real estate bonds during the COVID-19 crisis of 2020 and the subsequent recovery, risk premiums recently rose to their highest level since the GFC. Markets fear the consequences of rising financing costs, high inflation and a cooling of the economy. We believe that these fears are overblown and that favourably priced real estate investment trusts (REITs) – such as those operating in the logistics and data centre segments – are increasingly attractive.

Read the full publication here


Gerald Deutsch
Portfolio Manager Fixed Income Euro
Christian Bettinger
Head of Fixed Income Euro & Emerging Markets