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The Upside-Down Value of REITs

May 14 2018

The commonly held beliefs of which factors contribute to generating returns from REITs have typically been attributed to High Yields, Medium levels of Leverage, and Mid – to High Cap Rates. 

In our current environment, the changing demographics brought on by an aging population has heightened the focus on post retirement income generation.

However, a decline in capital generation is a by-product of a fixation on yield and ultimately a deterioration in the ability to generate income of any consequence.

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