It’s time to consider investing in REITs again: Brian Jones

U.S. Fed has signalled multiple times in recent weeks that it’s not done raising rates just yet. Still, Brian Jones of Neuberger Berman says it’s time to consider investing in REITs again.

Rates-related pain is already priced in

It’s an interesting call since the real estate investment trusts tend to be very sensitive to the rate hikes.

But Jones is convinced that much of the rates-related pain is already reflected in these stocks. On CNBC’s “The Exchange”, he said:

For the year, the Neuberger Berman Real Estate Fund is currently down more than 30%.

Jones reveals his favourite REIT

A name he particularly likes in this space is American Tower Corp (NYSE: AMT) that’s set to report its Q3 results tomorrow.

Analysts expect to see annualised growth in its revenue this quarter but a hit to funds from operations (FFO) per share. Still, Jones said:

Consensus is for this Boston-headquartered company to report $2.67 billion in revenue (8.6% YoY increase) on $2.42 of FFO per share (2.8% YoY decline). Wall Street has a consensus “overweight” rating on this stock.