The following real estate investment trusts (REITs) look like fantastic bets for passive income investors seeking to position ahead of what could be a return to a lower-rate environment. While I’m not calling for a return of near-zero rates, I do think that any “break” on rates could provide a considerable tailwind for the yield-heavy, rate-sensitive REITs, many of which are currently trading at dirt-cheap multiples. Such discounts may not last for very long, especially if inflation gives the Bank of Canada enough room to get a bit more dovish in the final quarter of the year.
Though I have no idea if REITs will skyrocket once rates really start moving lower, I do like the valuations I’m seeing today, and the healthy, swollen yields on distributions of some of the names. Simply put, the REITs continue to be unloved by Canadians.
For contrarian investors, this distaste for the REITs could provide a window to buy them at a…
