Experts Recommend Caution When Investing Heavily in Specific REIT Sectors
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You should never invest a third of your money into a single asset or sector due to lack of diversification and unknown risks. REITs should be limited to 15-20% of a portfolio.
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Even the best REITs with long histories of dividend growth like Federal Realty and Simon Property Group can unexpectedly cut dividends during unprecedented events like the pandemic.
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Rexford Industrial has focused exclusively on the strong Southern California industrial property market with high demand and limited supply.
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Alexandria Real Estate is the only publicly traded pure-play life sciences REIT with top tenants and a portfolio catering to essential research needs.
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VICI Properties owns iconic gaming and entertainment properties like Caesars Palace and MGM Grand, with very long tenant lease terms in a regulated industry.