3 REITs to Buy Before President Trump's New Fed Chair Cuts Interest Rates

President Donald Trump hasn't been shy successful demanding that the Federal Reserve chopped involvement rates, and unsurprisingly, his prime to win Fed Chair Jerome Powell is perchance connected the aforesaid page. Kevin Warsh has echoed the President's calls for little rates successful caller months, and national funds traders present forecast an 81% accidental of a complaint chopped by this summer, with a 45% accidental of 1 successful April, earlier Warsh is adjacent sworn in.

After astir 4 years of choky monetary policy, determination are indications that U.S. companies tin look guardant to little borrowing costs. That's large quality for existent property concern trusts (REITs), which payment from little involvement rates successful 3 ways.

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These companies, which travel tax-related rules that necessitate them to wage 90% of their nett income backmost to shareholders arsenic dividends, typically connection precocious yields that pull income investors who mightiness different beryllium near retired successful the acold by falling Treasury yields. Their valuations tin besides emergence due to the fact that their aboriginal currency flows are discounted utilizing the 10-year Treasury output arsenic a benchmark, truthful arsenic the second falls, REIT valuations rise. Finally, little borrowing costs people boost REITs, since they money their semipermanent operations done long-duration indebtedness that tin beryllium refinanced astatine much favorable presumption erstwhile involvement rates fall.

You tin spot REITs' inclination to outperform by comparing their returns during the past epoch of prolonged debased rates against those of the S&P 500. From June 2009 to November 2015, erstwhile the national funds complaint ne'er exceeded 0.21%, the Vanguard Real Estate Index Fund ETF (NYSEMKT: VNQ), an exchange-traded money (ETF) that offers wide vulnerability to U.S. equity REITs, handily bushed the S&P 500's full return.

Still, not each REITs volition thrive amid falling rates, portion others volition beryllium standout performers. Here are 3 opportunities successful the REIT beingness to see buying now.

Founded successful 1969 and headquartered successful Vancouver, Canada, Realty Income (NYSE: O) is the sixth-largest REIT globally, with properties successful 9 countries totaling $61 cardinal successful value. Its clients see Lowe's, Chipotle, Sainsbury's, and Walmart.

As of Q3 2025, the institution has announced 112 consecutive quarterly increases to its dividend. And with net increasing 17% twelvemonth implicit twelvemonth past quarter, this streak looks highly apt to continue. Realty Income pays a monthly dividend yielding 5.2% today, good supra the S&P 500 mean of 1.16%.