Real Estate's resilience in a higher rate regime

Evaluating the fundamentals of real estate invest- ment trusts (REITs) reveals healthy levels of occu- pancy and relatively low financial leverage. This suggests that there may be a disconnect be- tween REITs’ robust fundamentals and relatively low valuations. Furthermore, the diversity of the real estate sector is likely to add to its resilience, further indicating that the low valuations may be an over-reaction.