Real Estate Investment Trusts (REITs) have been under pressure over the last three months as interest rates have shot up. Talk of "tapering" by the Federal Reserve has driven the 10-Year Treasury yield from ~1.6% to just under 3% in short order. I am using this opportunity to add to my income portfolio by picking up some of these high yield REITs. I don't believe the economy can support 3% plus yields here due to tepid economic and job growth so the rapid rise in rates should plateau soon. In addition, I think real estate values in both the residential and commercial space will continue to slowly rebound from their post crisis lows.
Here are two high yielding plays I'm considering adding on the next dip. One Liberty Properties (OLP) is a REIT that owns and manages a geographically diversified portfolio of retail, industrial and other properties under long-term leases. BioMed Realty Trust (BMR) operates as a real estate investment trust that focuses on providing real estate to the biotech and life science industry in the United States.
Source: Seeking Alpha
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